Unauthorized Outside Business Activity and Selling Away Fraud, Misrepresentation and Negligent Supervision FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq. 

Debember, 2011:

William Alexis Cronin Jr. (CRD #872542, Registered Principal, Madison, Connecticut) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $181,000, which includes disgorgement of $171,000 in commissions, and suspended from association with any FINRA member in any capacity for two years. The fine must be paid either immediately upon Cronin’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, Cronin consented to the described sanctions and to the entry of findings that he participated in private securities transactions without prior written notice to, and prior written approval from, his member firm. The findings stated that Cronin sold approximately $1,712,500 in notes and debentures to investors, most of whom were his firm’s customers at the time.  The notes and debentures, which were securities, were sold through private placements.  Cronin received approximately $171,000 in commissions from these investments. The findings also stated that Cronin borrowed $10,000 from one of his customers at his firm.  Cronin executed a promissory note stating that the loan was to be paid in full by a certain date, but failed to repay the loan according to the terms of the note. Cronin eventually repaid the loan with interest, but only after the customer filed an action against him. The findings also included that Cronin borrowed $5,000 from another customer through a loan that was not reduced to writing, and had no repayment terms; Cronin repaid the loan.  FINRA found that Cronin did not disclose either of the loans to his firm, which prohibited loans from customers without prior firm approval. 

The suspension is in effect from November 7, 2011, through November 6, 2013. (FINRA Case #2011025885801).