Deltona, FL, Rep Fined and Suspended by FINRA

William Edward Herlihy (CRD #4005879, Registered Principal, Deltona, Florida) 

submitted a Letter of Acceptance, Waiver and Consent in which he was fined $50,000 and suspended from association with any FINRA member in any capacity for six months. The fine must be paid either immediately upon Herlihy’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

Without admitting or denying the findings, Herlihy consented to the described sanctions and to the entry of findings that he effected the sales of stock that was not registered with the SEC, and no exemption from registration applied. The findings stated that the transactions generated proceeds of approximately $386,000 for the customers. The findings also stated that despite the questionable circumstances surrounding the transactions, Herlihy failed to conduct a “searching inquiry” to ensure that the sales did not violate Section 5 of the Securities Act of 1933. The findings also included that Herlihy communicated with several of his customers through his personal email account in contravention of his member firm’s written procedures, thereby interfering with the firm’s supervision and retention of electronic communications and contravened its written procedures.

The suspension is in effect from March 5, 2012, through September 4, 2012.

(FINRA Case #2009019534201)