NASD Member Firm: GUNNALLEN FINANCIAL, INC CRD Number: 17609
REGULATORY ACTIONS
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DISCLOSURE INFORMATION
******** REGULATORY ACTION (1 of 4) ********
Reporting Source: Firm (Form BD)
Date Reported: 07/02/2003
Initiated By: NASD
Date initiated: 06/24/2003
Docket/
Case Number: NASD EXAMINATION # E07021191
Allegations: SUBJECT OF AN INVESTIGATION OF VIOLATION NASD MEMBERSHIP RULE
1017.
Current Status: Pending
Summary:
******** REGULATORY ACTION (2 of 4) ********
Reporting Source: Regulator (Form U-6)
NASD Public Disclosure Program July 08, 2003 Page 5
This information is current as of: 07/08/2003
________________________________________________________________________________
NASD Member Firm: GUNNALLEN FINANCIAL, INC
CRD Number: 17609
REGULATORY ACTIONS(cont.)
Date Reported: 05/23/2003
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date initiated: 05/13/2003
Docket/
Case Number: C07030033
Allegations: NASD BY-LAWS ARTICLE V, SECTION 2, NASD RULE 3070(A)(8) -
RESPONDENT MEMBER FAILED TO REPORT SETTLEMENTS OF CUSTOMER
CLAIMS IN EXCESS OF $25,000 WITHIN 10 BUSINESS DAYS VIA NASD'S
CUSTOMER COMPLAINT REPORTING SYSTEM; AND FAILED TO UPDATE
FORMS U-4 OF ASSOCIATED PERSONS TO REFLECT INFORMATION
REGARDING THE SETTLEMENT OF CUSTOMER ARBITRATION CLAIMS
AGAINST THEM.
Current Status: Final
Resolution: Acceptance, Waiver & Consent(AWC)
Resolution Date: 05/13/2003
Sanctions
Ordered: Monetary/Fine
Monetary Amount: $7,500.00
Resolution
Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, GUNNALLEN
FINANCIAL, INC. CONSENTED TO THE DESCRIBED SANCTION AND TO THE
ENTRY OF FINDINGS, THEREFORE, THE FIRM IS FINED $7,500.
Summary:
***********************************
Reporting Source: Firm (Form BD)
Date Reported: 07/01/2003
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS
Date initiated: 01/17/2003
Docket/
Case Number: NASD CASE #C07030033
Allegations: THE NASD HAS NOTIFIED THE FIRM, THAT (1) IT ALLEGEDLY VIOLATED
CONDUCT RULE 3070(A)(8)BY FAILING TO REPORT FIVE SETTLEMENTS
OF CUSTOMER CLAIMS IN EXCESS OF $25000.00 WITHIN 10 BUSINESS
DAYS AND THAT (2) BRADLEY A FAY , AS THE FIRMS FINOP IN CHARGE
OF REGISTRATIONS ALLEGEDLY VIOLATED ART. V. SEC. 2 BY
APPARENTLY FAILING TO UPDATE TWO U-4'S TO REFLECT THAT
PREVIOUSLY DISCLOSED CUSTOMER ARBITRATIONS HAD BEEN
SUBSEQUENTLY SETTLED.
Current Status: Final
Resolution: Acceptance, Waiver & Consent(AWC)
Resolution Date: 05/13/2003
Sanctions
Ordered: Monetary/Fine
Monetary Amount: $7,500.00
Resolution
Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, GUNNALLEN
FINANCIAL, INC. CONSENTED TO THE DESCRIBED SANCTION AND TO THE
ENTRY OF FINDINGS, THEREFORE, THE FIRM IS FINED $7500.00.
Summary:
******** REGULATORY ACTION (3 of 4) ********
Reporting Source: Regulator (Form U-6)
Date Reported: 01/08/2002
Initiated By: OFFICE OF THE NORTH DAKOTA SECURITIES COMMISSIONER
Date initiated: 12/28/2001
NASD Public Disclosure Program July 08, 2003 Page 6
This information is current as of: 07/08/2003
________________________________________________________________________________
NASD Member Firm: GUNNALLEN FINANCIAL, INC
CRD Number: 17609
REGULATORY ACTIONS(cont.)
Docket/
Case Number:
Allegations: RESPONDENT SUBMITTED BROKER/DEALER APPLICATION AND ALONG WITH
THE APPLICATION SENT AN AFFIDAVIT OF DEALER ACTIVITY STATING
THAT THEY HAD NOT CONDUCTED SECURITIES TRANSACTIONS ON BEHALF
OF A NORTH DAKOTA RESIDENT. A TRANSACTION HAD BEEN MADE ON
BEHALF OF A NORTH DAKOTA RESIDENT IN DECEMBER OF 2000
Current Status: Final
Resolution: Order
Resolution Date: 01/03/2002
Sanctions
Ordered: Monetary/Fine
Monetary Amount: $3,000.00
Resolution
Details: CONSENT ORDER SIGNED ON DECEMBER 28, 2001, STATED THE DEALER
WOULD BE FINED $3000. FINE WAS PAID ON JANUARY 3, 2002, IN
FULL
Summary: ON AUGUST 21, 2001, THE NORTH DAKOTA SECURITIES COMMISSIONER
RECEIVED AN APPLICATION FROM GUNNALLEN. ALONG WITH THAT
APPLICATION THEY SENT AN AFFIDAVIT STATING THEY HAD NOT
CONDUCTED ANY TRANSACTIONS IN NORTH DAKOTA WHICH THEY HAD DONE
BACK IN DECEMBER 2000 ON BEHALF OF ONE NORTH DAKOTA RESIDENT.
FINE WAS ORDERED ON THEM ON DECEMBER 28, 2001, AND PAID IN
FULL ON JANUARY 3, 2002.
***********************************
Reporting Source: Firm (Form BD)
Date Reported: 09/17/2002
Initiated By: OFFICE OF THE NORTH DAKOTA SECURITIES COMMISSIONER
Date initiated: 12/28/2001
Docket/
Case Number:
Allegations: BROKER/DEALER SUBMITTED AN APPLICATION AND ALONG WITH THE
APPLICATION WAS SENT AN AFFIDAVIT OF DEALER'S ACTIVITY STATING
THAT THEY HAD NOT CONDUCTED SECURITIES TRANSACTIONS ON BEHALF
OF A NORTH DAKOTA RESIDENT. A TRANSATION HAS BEEN MADE ON
BEHALF OF A NORTH DAKOTA RESIDENT IN DECEMBER OF 2000.
Current Status: Final
Resolution: Order
Resolution Date: 01/03/2002
Sanctions
Ordered: Monetary/Fine
Monetary Amount: $3,000.00
Resolution
Details: CONSENT ORDER SIGNED ON 12/28/2001, STATED DEALER WOULD BE
FINED $3000.00. FINE WAS PAID ON 1/3/02 IN FULL
Summary: ON 8/21/2001, THE NORTH DAKOTA SECURITIES COMMISIONER RECEIVED
AN APPLICATION FROM GUNNALLEN ALONG WITH THAT APPLICATION
GUNNALLEN SENT AN AFFIDAVIT STATING THAT THEY HAD NOT
CONDUCTED ANY TRANSACTIONS ON BEHALF OF A NORTH DAKOTA
RESIDENT WHICH IN FACT ONE TRANSACTIONS WAS EXECUTED IN BEHALF
OF A RESIDENT IN DECEMBER 2000. A FINE WAS ORDERED 12/28/01
AND PAID IN FULL 1/3/02.
******** REGULATORY ACTION (4 of 4) ********
Reporting Source: Regulator (Form U-6)
Date Reported: 07/07/2003
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date initiated: 08/02/2000
NASD Public Disclosure Program July 08, 2003 Page 7
This information is current as of: 07/08/2003
________________________________________________________________________________
NASD Member Firm: GUNNALLEN FINANCIAL, INC
CRD Number: 17609
REGULATORY ACTIONS(cont.)
Docket/
Case Number: CMS000162
Allegations: SEC RULE 15C2-11, AND NASD RULES 2110 AND 6740 - PURSUANT TO
SECTION 12(K)(1)(A) OF THE SECURITIES EXCHANGE ACT OF 1934,
SEC SUSPENDED TRADING IN CERTAIN OTC EQUITY SHARES.
RESPONDENT FIRM PLACED ORDERS TO SELL SUCH SHARES FOR THE
FIRM'S PROPRIETARY ACCOUNT. FOLLOWING THE CONCLUSION OF THE
SUSPENSION PERIODS, THE FIRM PUBLISHED A QUOTATION FOR EACH OF
THESE SECURITIES, OR DIRECTLY OR INDIRECTLY, SUBMITTED SUCH
QUOTATIONS FOR PUBLICATION IN A QUOTATION MEDIUM AND: (I) DID
NOT HAVE IN ITS RECORDS THE DOCUMENTATION REQUIRED BY SEC RULE
15C2-11(A) ("PARAGRAPH (A) INFORMATION"); (II) DID NOT HAVE A
REASONABLE BASIS UNDER THE CIRCUMSTANCES FOR BELIEVING THAT
THE PARAGRAPH (A) INFORMATION WAS ACCURATE IN ALL MATERIAL
RESPECTS; OR (III) THAT THE SOURCES OF THE PARAGRAPH (A)
INFORMATION WERE RELIABLE. RESPONDENT FIRM FAILED TO FILE A
FORM 211 WITH THE ASSOCIATION AT LEAST THREE BUSINESS DAYS
BEFORE THE FIRM'S QUOTATIONS WERE PUBLISHED OR DISPLAYED IN A
QUOTATION MEDIUM.
Current Status: Final
Resolution: Acceptance, Waiver & Consent(AWC)
Resolution Date: 08/02/2000
Sanctions
Ordered: Monetary/Fine
Monetary Amount: $5,000.00
Resolution
Details: THE FIRM SHALL ALSO, WITHIN 60 DAYS OF THE ACCEPTANCE OF THIS
AWC BY THE ASSOCIATION, UNDERTAKE TO SUBMIT REVISED WRITTEN
SUPERVISORY PROCEDURES REASONABLY DESIGNED TO PREVENT FUTURE
VIOLATIONS OF SEC RULE 15C2-11 AND NASD RULE 6740.
Summary:
***********************************
Reporting Source: Firm (Form BD)
Date Reported:
Initiated By: NASD REGULATION, INC.
Date initiated: 08/02/2000
Docket/
Case Number: CMS000162AWC
Allegations: FAILURE TO COMPLY WITH NASD MARKETPLACE RULE 6740 AND CONDUCT
RULE 2110.
Current Status: Final
Resolution: Acceptance, Waiver & Consent(AWC)
Resolution Date: 08/02/2000
Sanctions
Ordered: Monetary/Fine
Monetary Amount: $5,000.00
Resolution
Details: $5000 AGAINST GUNNALLEN PAID 8/7/2000
Summary:
NASD Public Disclosure Program July 08, 2003 Page 8
This information is current as of: 07/08/2003
________________________________________________________________________________
NASD Member Firm: GUNNALLEN FINANCIAL, INC
CRD Number: 17609
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FIRM ARBITRATIONS
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DISCLOSURE INFORMATION
This section contains summary information regarding arbitration awards rendered
in a forum administered by the NASD that involve securities or commodities
disputes between NASD member firms and public customers.
Some of the fields in this section of the report may be blank if the information
was not provided to CRD.
Unlike the arbitration information required to be reported by brokers via Form
U-4, firm arbitration information is not required to be reported on Form BD and
is therefore disclosed through the Public Disclosure Program via a slightly
different mechanism. Summary information regarding NASD arbitration awards
involving securities and commodity disputes between public customers and NASD
member firms is updated and disclosed on firm public disclosure reports
generally within 10-15 days after the arbitration award is signed and served to
all parties.
The full text of arbitration awards issued by arbitrators at the NASD and at
other forums is available online as a cooperative arrangement between NASD
Dispute Resolution and the Securities Arbitration Commentator (SAC) at
www.nasdadr.com. The awards are generally available within one month after the
arbitration award is signed and served to all parties. To access the
arbitration award information it is suggested that you first view the summary
information available via the Public Disclosure Program, and then use the case
number included in the Public Disclosure report to access the full text of the
award at www.nasdadr.com.
** OCCURRENCE COUNTS ** 3 Record(s)
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** FIELD DEFINITIONS **
* Type of Event: Type of disclosure event (e.g., arbitration) that
details pertain to.
* Update: An indication (i.e., yes or no) as to whether the
information is an update to earlier information
reported about the arbitration proceeding.
* Arbitration Forum: Forum that administered the arbitration proceeding.
* Case Served Date: Date case was served on respondent(s).
* Case Number: Case number assigned to the arbitration proceeding.
* Allegations: Allegations made by the customer(s) which lead to
the arbitration proceeding.
* Type of Securities: Type of securities allegations relate to.
* Relief Asked: Alleged dollar amount of compensatory damages sought
by the customer(s).
* Disposition: Disposition of the arbitration proceeding.
* Disposition Date: Date of disposition.
* Relief Awarded: Details related to the relief awarded to the parties
involved in the arbitration proceeding.
********************************************************************************
******** FIRM ARBITRATION (1 of 3) ********
Type of Event: ARBITRATION
Update: NO
Arbitration Forum: NASD
Case Served Date: 09/01/1998
Case Number: 98-02524
Allegations: ACCOUNT RELATED-OTHER
Type of Securities: COMMON STOCK
Relief Asked: ACTUAL/COMPENSATORY DAMAGES, ASKED AMOUNT $3,730.00;
OTHER COSTS, ASKED AMOUNT $0.00; OTHER NON-MONETARY
RELIEF, ASKED AMOUNT
Disposition: AWARD AGAINST PARTY
NASD Public Disclosure Program July 08, 2003 Page 9
This information is current as of: 07/08/2003
________________________________________________________________________________
NASD Member Firm: GUNNALLEN FINANCIAL, INC
CRD Number: 17609
FIRM ARBITRATIONS(cont.)
Disposition Date: 05/17/1999
Relief Awarded: ACTUAL/COMPENSATORY DAMAGES, RELIEF HAS BEEN AWARDED
(PARTIAL OR FULL), AWARD AMOUNT $5,000.00 JOINTLY AND
SEVERALLY; OTHER COSTS, RELIEF REQUEST HAS BEEN DENIED
IN FULL; OTHER NON-MONETARY RELIEF, RELIEF HAS BEEN
AWARDED (PARTIAL OR FULL), AWARD AMOUNT
******** FIRM ARBITRATION (2 of 3) ********
Type of Event: ARBITRATION
Update: NO
Arbitration Forum: NASD
Case Served Date: 01/13/1994
Case Number: 93-04871
Allegations: ACCOUNT RELATED-BREACH OF CONTRACT
Type of Securities: LIMITED PARTNERSHIPS
Relief Asked: ACTUAL/COMPENSATORY DAMAGES, ASKED AMOUNT $1,000.00;
INTEREST, ASKED AMOUNT $0.00
Disposition: AWARD AGAINST PARTY
Disposition Date: 06/23/1995
Relief Awarded: ACTUAL/COMPENSATORY DAMAGES, RELIEF HAS BEEN AWARDED
(PARTIAL OR FULL), AWARD AMOUNT $1,000.00; INTEREST,
RELIEF HAS BEEN AWARDED (PARTIAL OR FULL)
******** FIRM ARBITRATION (3 of 3) ********
Type of Event: ARBITRATION
Update: NO
Arbitration Forum: NASD
Case Served Date: 05/11/1993
Case Number: 93-01058
Allegations: ACCOUNT RELATED-DIVIDENDS
Type of Securities: LIMITED PARTNERSHIPS
Relief Asked: ACTUAL/COMPENSATORY DAMAGES, ASKED AMOUNT $423.02;
INTEREST, ASKED AMOUNT $0.00
Disposition: AWARD AGAINST PARTY
Disposition Date: 02/04/1994
Relief Awarded: ACTUAL/COMPENSATORY DAMAGES, RELIEF HAS BEEN AWARDED
(PARTIAL OR FULL), AWARD AMOUNT $423.02 JOINTLY AND
SEVERALLY; INTEREST, RELIEF HAS BEEN AWARDED (PARTIAL
OR FULL), AWARD AMOUNT $157.98 JOINTLY AND SEVERALLY
************ END OF REPORT ************ |
