The Financial Industry Regulatory Authority (Finra) has imposed a fine and suspended Joseph Warner Rozof, a former Harley Capital LLC spokesman, for suspected violations of Finra’s rules.
Rozof was first registered with Finra in 2007. Between March 2022 and July 2024, Rozof was registered as a General Mobile Representative through a link to Harley Capital LLC.
From April 2022 to May 2024, Rozof put over 250 discreet transactions on the accounts of two Harley Capital customers. Although Rozof generally discussed the negotiation strategy with customers, he did not talk to customers about these transactions on the dates of transactions.
Rozof had no written authorization from customers to exercise discretionary discretion on their accounts. In addition, the company had not accepted any of the accounts for discreet transactions.
As a result, Rozof violated the Finra 3260 (B) rules in 2010.
From March 2022 to June 2024, Rozof used a personal mobile phone to exchange text messages to communicate with 27 Harley Capital clients (including the two customers in which he posted distinctive transactions and two family members) on business -related businesses.
For example, Rozof recommended the purchase and sale of securities and discussed the transfers of capital to customer accounts through text messages.
He also used his personal mobile phone to respond and communicate in another way with other business employees on title -related businesses.
At all relevant times, Harley Capital’s written supervision procedures provide that such business -related text messages must only be done through an approved system approved by the business that occupied and saved these messages, which the business was then able to oversee. Rozof did not use such a system, nor did the business messages otherwise gave the business to review or maintain.
As a result, Harley Capital did not gather or retain these text messages, as required by Article 17 (a) of the Act on Exchange and Article 17a-4 (B) (4).
Challenging Harley Capital to maintain incomplete books and records, Rozof violated the Finra 4511 and 2010 rules.
Rozof agreed with the imposition of the following sanctions:
- A 45 -day suspension of the correlation with any FINRA member to all possibilities. and
- Fine $ 10,000.