Firm, Two Individuals Fined Total of $32,500 by FINRA

WASHINGTON – Revere Securities was fined $10,000 for trade reporting failures while two individuals were fined a total of $22,500 and suspended for improper trading of municipal securities and supervisory failures by the Financial Industry Regulatory Authority.

Without admitting or denying the findings, the firm and individuals consented to the sanctions, according to FINRA's monthly disciplinary actions.

FINRA said that New York City-based Revere, from April 1 through Sept. 30, 2015, failed to report the correct time of trade for 62 trades to the Municipal Securities Rulemaking Board's Real-time Transaction Reporting System. The firm also did not report information about these 62 trades to the RTRS within 15 minutes of execution. FINRA said reporting failures were violations of the MSRB's Rule G-14 on reports of sales and purchases. It fined Revere $7,500 for these violations.

In addition, FINRA said Revere failed to record the correct time of trade execution on the memorandum of 52 muni trades, a violation of Rule G-8 on books and records. It fined Revere $2,500 for these violations.

The firm did not return calls for comment.

FINRA fined Tom Abel Puentes from Langley, Wash. $15,000 and suspended him for 30 days from association with any FINRA-member firm in any capacity for violating the MSRB's Rule G-17 on fair dealing.

Puentes was a general securities representative and a general securities sales supervisor at Morgan Stanley from 2010 through 2013 before the firm terminated him.

During that time, he exercised time and price discretion to purchase municipal bonds on 220 occasions in 14 customer accounts without obtaining authorization from the customer and the firm as required, FINRA said.

In addition, Puentes failed to disclose the discretionary actions to Morgan Stanley when responding to its annual compliance questionnaires. The firm asked Puentes in questionnaires for each of those years, "Do you have any accounts in which business is transacted on a discretionary basis?" He falsely responded "no."

Puentes is currently an investment adviser at Kestra Private Wealth Services in Langley. His Investment Adviser Representative Public Disclosure Report shows he has had 20 complaints from customers over the years. He declined to comment on the case.

FINRA fined Jeffrey Duane Jacobson from Maple Grove, Minn. $7,500 and suspended him for 15 business days from acting in a principal capacity. He is a general securities principal and operations principal at Dougherty & Co.

According to FINRA, Jacobson, from 2010 until June 2014, did not adequately supervise one of Dougherty's top producers who initiated trades for two elderly customers without contacting them on hundreds of occasions. He recommended unsuitable trading strategies – short-term trading in corporate and municipal bonds and unnecessary uses of margin – to those customers on dozens of occasions, FINRA said.

Jacobson was primarily responsible for supervising the trader's activity, but did not have to approve trades of municipal bonds.

FINRA said he ignored warning signs, such as monthly reports showing high levels of trading activity. FINRA said Jacobson violated NASD Rule 3010 and FINRA Rule 2010. NASD was FINRA's predecessor.

Jacobson declined to comment.

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