Selling Away and Outside Business Activity Fraud and Misrespresentation FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
Askar Corp. (CRD #7512, Bloomington, Minnesota) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $12,500. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that although it had WSPs that were appropriate with respect to private securities transactions, it failed to enforce the procedures as written. The findings stated that this resulted in the firm’s failure to review and approve or disapprove the private securities transactions of some registered representatives who were associated with the firm. The firm’s failure to supervise these private securities transactions violated NASD Rule 3040, which requires members to give prior written approval or disapproval of any proposed private securities transaction by an associated person. The findings also stated that the firm failed to establish and enforce a supervisory system and WSPs to supervise private securities transactions some of its registered representatives executed, including failing to record the transactions on its books and records.(FINRA Case #2010021008701).