The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, March, 2013.”

William Howard Coons (CRD #2049465, Registered Supervisor, West Hartford, Connecticut)

was fined $10,000 and suspended from association with any FINRA member in any capacity for 20 business days.
Without admitting or denying the findings, Coons consented to the described sanctions and to the entry of findings that he negligently omitted material facts and made material misstatements in connection with his sale of approximately $2 million in promissory notes issued by his member firm’s parent company.

FINRA’s findings stated that Coons did not adequately understand the present financial condition of the issuer, or its ability to make payments on the notes, when he sold the notes. Coons was not provided with a private placement memorandum or financial statements of the issuer prior to selling the notes. Coons was provided with financial statements of the issuer’s two broker-dealer subsidiaries, but these results omitted the substantial debt and other expenses that caused the consolidated entity to operate at a loss.

FINRA’s findings also stated that Coons conducted his own due diligence on the issuer’s business plan and future prospects, and spoke to the heads of the issuer’s existing and anticipated new business lines, but relied
on statements by his firm’s president and CEO to develop his understanding of the issuer’s financial results. As a result, Coons failed to adequately understand or disclose the issuer’s actual financial condition to his customers when he sold them the notes.

These findings also included that while Coons was selling the notes, the issuer defaulted on the notes that it
had issued to retail investors and had also missed interest payments owed to at least some note holders, and had, for several years, failed to make interest payments to retail investors who had purchased the company’s preferred stock. Coons did not understand these facts and did not disclose them to his customers.

FINRA found that in some instances, Coons negligently misstated the issuer’s financial condition. Coons told certain customers that the issuer was breaking even and that the company’s cash flow could service both its current and existing debt. Coons did not have a reasonable basis for making these statements. In fact, the issuer was losing money and was unable to service its existing debt. FINRA also found that in some instances, Coons provided customers with historical financial statements of the issuer’s broker-dealer subsidiaries
that did not include the separate results of the issuer, so the financial statements Coons provided to certain customers were materially misleading.

In addition, FINRA determined that although Coons did tell potential investors that they could lose their entire investment,he min imized the likelihood of this happening, and failed to disclose facts indicating the
likelihood of a default on the notes he was selling. Moreover, FINRA found that after the issuer defaulted on the notes, those investors who agreed to sign releases and invest additional funds in a related enterprise were returned the principal and interest they invested. To date, other investors who purchased the note from other brokers have not received the return of their principal and interest.

The suspension is in effect from February 19, 2013, through March 18, 2013. (FINRA Case #2011026346205)

The following information is from FINRA’s BrokerCheck:

Coons is currently employed by and registered with the following FINRA Firm(s):
HALLMARK INVESTMENTS, INC.
6 EAST 39TH STREET
NEW YORK, NY 10016
CRD# 135003
Registered with this firm since: 10/21/2010

This broker was previously registered with FINRA at the following brokerage firms:
MONARCH FINANCIAL CORPORATION OF AMERICA
CRD# 23437
NEW YORK, NY
10/2010 – 10/2010

WESTROCK ADVISORS, INC.
CRD# 114338
NEW YORK, NY
06/2009 – 10/2010

MAXIM GROUP LLC
CRD# 120708
NEW YORK, NY
10/2002 – 07/2009

This ends the information from FINRA’s website.

Call Soreide Law Group, a Securities Arbitration Law Firm, for a free consultation with an attorney on how to potentially recover your investment losses at 888-760-6552.

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THE FOLLOWING IS AN ARTICLE FROM THE SEC’S WEBSITE:

“The Securities and Exchange Commission (SEC) announced that a federal judge in Massachusetts entered a final judgment on March 14, 2012 ordering defendant James J. Konaxis, formerly a registered representative of Beverly-based broker-dealer Sentinel Securities, Inc., to disgorge more than $483,000 in commissions earned over a two-year period by defrauding a former customer who was left widowed by the September 11, 2001 terrorist attacks. Together with prejudgment interested and a civil penalty, Konaxis has been ordered to pay a total of $514,954. In granting the Commission’s motion for monetary remedies, Judge Denise L. Casper found that Konaxis was liable in the amount of all commissions earned from three of the victim’s accounts over a two-year period because he “misled the victim into thinking her investments were safe, while churning (e.g., excessively trading) her funds in a manner contrary to her interests[.]”

According to the Commission’s complaint, Konaxis violated Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder by excessively trading his customer’s funds while knowingly or recklessly disregarding her interests. During a two-year period, the Commission alleges that the value of his customer’s accounts (funded by payments made to the victim and her family by the September 11^th Victim Compensation Fund) decreased from approximately $3.7 million to approximately $1.6 million, much of which was due to Konaxis’s investments and the resulting commissions paid to Konaxis.

At the time the Commission’s complaint was filed, Konaxis entered into a partial settlement with the Commission, in which he consented to be enjoined from future violations of the antifraud provisions of the Securities Act and Exchange Act, and to be barred from participating in any offering of penny stock. In addition, as part of the settlement, Konaxis agreed to be barred in related administrative proceedings from any future association with any broker, dealer, investment adviser, municipal securities dealer, or transfer agent. However, the Commission also filed a motion with the Court seeking disgorgement of ill-gotten gains plus pre-judgment interest, and the imposition of a civil penalty, which Konaxis opposed.

After a hearing on March 1, 2012, Judge Denise L. Casper issued an order granting the Commission’s motion for monetary remedies, including disgorgement in the full amount of Konaxis’ commissions earned over a two-year period from the three accounts churned, totaling $483,460.23, prejudgment interest in the amount of $31,494.44, and a civil penalty of $10,000, for a total of $514,954.”

END OF SEC’S ARTICLE

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THE FOLLOWING IS AN ARTICLE FROM THE SEC’S WEBSITE:

“The U.S. Securities and Exchange Commission announced today that the United States District Court for the District of Colorado entered an Order amending a February 11, 2011 Final Judgment wherein Greenberg, without admitting or denying the Commission’s allegations, consented to the entry of a Final Judgment that enjoined him from violations of Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rules 206(4)-2, 206(4)-7, and 206(4)-8 thereunder. Greenberg was the former Chief Executive Officer and majority owner of registered investment adviser Tactical Allocation Services LLC (TAS) and the founder and head portfolio manager for a registered investment adviser wholly-owned by TAS, Agile Group LLC (Agile Group). The Final Judgment also found that Greenberg was liable for disgorgement of $3,941,185, plus prejudgment interest, but based on his financial condition waived payment of all but $330,000 of that amount and, in addition, required Greenberg to surrender his interests in certain Agile Group hedge funds. The Final Judgment imposed no penalty based on Greenberg’s financial condition and prohibited Greenberg from seeking reimbursement for the money and fund interests he was disgorging. Greenberg paid the $330,000 and those funds were distributed to Agile investors under a Court approved equitable distribution plan.

On January 31, 2012, the Commission moved for an order requiring Greenberg to pay the unpaid portion of his disgorgement, pre- and post-judgment interest thereon, and a maximum civil penalty, alleging that Greenberg’s statement of financial condition on which the Final Judgment was based was incomplete. The Order, to which Greenberg stipulated, finds Greenberg liable for disgorgement of $3,998,145, representing the unpaid portion of the amount ordered to be disgorged in the Final Judgment (original $4,328,145 judgment comprised of $3,941,185 in disgorgement and $386,960 in prejudgment interest, offset by the $330,000 Greenberg paid on January 24, 2011). It further orders Greenberg to pay a civil penalty in the amount of $3,941,185, and post-judgment interest through February 29, 2012 of $130,480.03. The Order further imposes a freeze on Greenberg’s assets.

According to the SEC’s original complaint in this matter, extensive losses were suffered by affiliated hedge funds managed and recommended by Greenberg, including the Agile Safety Fund, the Agile Safety Fund International, and the Agile Safety Variable Fund (collectively Agile hedge funds). The Agile hedge funds were marketed and managed by affiliated investment advisers Agile Group and TAS. The Commission’s complaint alleged that Greenberg negligently misrepresented the safety, suitability, and diversification of the Agile hedge funds to TAS clients, in many cases conservative investors in or near retirement. Further, the complaint alleged that Greenberg made inadequate disclosure concerning advisory fees; failed to implement adequate compliance policies and procedures; failed to properly supervise his subordinate investment advisers; and failed to provide account statements and annual reports to his clients.”

END OF SEC’S ARTICLE

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THE FOLLOWING ARTICLE WAS OBTAINED FROM THE SEC’S WEBSITE:

“On March 1, 2012, a federal judge ordered the former CEO of Brookstreet Securities Corp. to pay a maximum $10 million penalty in a securities fraud case related to the financial crisis.

In December of 2009, the U.S. Securities and Exchange Commission filed a civil injunctive action against Brookstreet Securities Corp. and Stanley C. Brooks, charging them with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals. Brookstreet and Brooks developed a program through which the firm’s registered representatives sold particularly risky and illiquid types of Collateralized Mortgage Obligations (CMOs) to more than 1,000 seniors, retirees, and others for whom the securities were unsuitable. Brookstreet and Brooks continued to promote and sell the risky CMOs even after Brooks received numerous warnings that these were dangerous investments that could become worthless overnight. The fraud resulted in severe investor losses and eventually caused the firm to collapse.

On February 23, 2012, the Honorable David O. Carter entered an order granting summary judgment in favor of the Securities and Exchange Commission. He found Brookstreet and Brooks liable for violating Section 10(b) of the Securities Exchange Act of 1934 as well as Rule 10b-5. On March 1, 2012, the court entered a final judgment and ordered the financial penalty sought by the Securities and Exchange Commission. In addition to the $10,010,000 penalty, Brooks was ordered to pay $110,713.31 in disgorgement and prejudgment interest. The court’s judgment also enjoins both Brookstreet and Brooks from violating Section 10(b) of the Exchange Act as well as Rule 10b-5.”

THIS ENDS THE SEC’S ARTICLE.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: www.securitieslawyer.com.

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