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Selected FINRA Disciplinary Actions, November 2010
Posted by: Robert Rex
December 08, 2010

Some recent disciplinary actions by FINRA from November 2010:

Kevin Lawrence Cohen (CRD #4527236, Registered Principal, Stuart, Florida), Dennis Stanley Kaminski (CRD #1013459, Registered Principal, Wellington, Florida), and Gari Craig Sanfilippo (CRD #4151931, Registered Principal, Wellington, Florida) were each suspended from association with any FINRA member in any capacity for 18 months and required to requalify before acting in any capacity requiring qualification. In addition, Kaminski was fined $50,000. The National Adjudicatory Council (NAC) imposed the sanctions following appeal and call for review of an Office of Hearing Officers (OHO) decision. The sanctions were based on findings that Kaminski failed to supervise his member firm?s timely review of variable annuity transactions and failed to address the breakdown of the compliance department?s Trade Review Team?s review of Red Flag Blotters. The findings stated that Cohen and Sanfilippo created and maintained inaccurate books and records relating to the firm?s variable annuity trading. Cohen?s and Sanfilippo?s suspensions are in effect from October 18, 2010, through April 19, 2012. Kaminski has appealed to the SEC, and the sanctions are not in effect pending consideration of the appeal. (FINRA Case #EAF0400630001)

Joshua Kohn (CRD #2419594, Registered Representative, Deerfield Beach, Florida) submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the allegations, Kohn consented to the described sanction and to the entry of findings that he failed to appear for a FINRA on-the-record interview and failed to contact FINRA to reschedule the interview. (FINRA Case #2009020974501)

The Office of Hearing Officers (OHO) issued the following decision, which has been appealed to or called for review by the NAC as of September 30, 2010. The NAC may increase, decrease, modify or reverse the findings and sanctions imposed in the decision. Initial decisions where the time for appeal has not yet expired will be reported in future issues of FINRA Disciplinary and Other Actions:

Tradespot Markets Inc. fka Beloyan Investment Securities, Inc. (CRD #29683, Davie, Florida) and Mark Bedros Beloyan (CRD #1392748, Registered Principal, Davie, Florida) were fined $13,500, jointly and severally. Beloyan was suspended from association with any FINRA member in any capacity for 10 business days. The sanctions were based on findings that Beloyan, acting on the firm?s behalf, drafted and distributed emails in which he recommended the purchase of securities, and those recommendations were unbalanced, misleading and omitted material facts. The findings stated Beloyan and the firm failed to conduct a review of one of the companies? current financial statements before recommending the purchase of its stock in emails. This decision has been appealed to the NAC and the sanction is not in effect pending consideration of the appeal. (FINRA Case #2005001988201)

Jason Michael Mutascio (CRD #4156832, Registered Representative, Aventura, Florida) was named as a respondent in a FINRA complaint alleging that he falsified multiple third-party wire request forms, submitted the falsified forms to his member firm, and obtained and exercised control over at least $52,500 in funds from a customer?s account without the customer?s knowledge or authorization. The complaint alleges that Mutascio?s submission of the falsified wire requests caused his firm?s books and records to be inaccurate. The complaint also alleges that Mutascio failed to appear and provide a FINRA on-the-record sworn statement. (FINRA Case #2009017814901)

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