FINRA

Without admitting or denying the findings, Zipper consented to the sanctions and to the entry of findings that he failed to implement and enforce a reasonable anti-money laundering (AML) program. The findings stated that affiliates of one of the member firm's owners in Venezuela and Panama engaged in trading with the firm and each other that presented Zipper with red flags of suspicious activity. Zipper, however, failed to address those red flags. In addition, Zipper failed to ensure that there was annual independent testing of the firm's AML system and to implement an employee AML training program for a firm branch office. The findings also stated that Zipper failed to establish and maintain a system, including written procedures, reasonably designed to supervise the branch office or the firm's foreign bond business. Additionally, Zipper failed to register the branch office and an office of supervisory jurisdiction with FINRA and failed to ensure that the firm inspected the branch office, or set forth any examination schedule or criteria in its WSPs, despite the fact that the branch was new, was staffed by foreign associates in a foreign location, transacted in complex foreign bond trading unlike the firm's historic securities business, and generated the bulk of the firm's revenues.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

Any principal capacitiy

Indefinite

2/14/2019

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

On January 23, 2017, Zipper was granted a discharge in bankruptcy under Section 727 of Title 11, United States Code. Additionally, Zipper has submitted a sworn financial statement and demonstrated a limited ability to pay. In light of Zipper's financial status, a fine of $5,000 has been imposed.

Dakota Securities International, Inc.

Permitted to Resign

Through an oversight in not filing the appropriate form with FINRA, Bruce Zipper resumed his principal responsibilities at Dakota Securities International, Inc.

FINRA

Zipper was named a respondent in a FINRA complaint alleging that while he was suspended from association with a FINRA member firm in all capacities, Zipper did not comply with his suspension or the firm's WSPs regarding suspended individuals. The complaint alleges that instead, while suspended, Zipper continued to conduct a securities business and engaged in clerical and managerial activities on behalf of the firm. Specifically, Zipper solicited the sale of securities, communicated with customers regarding securities and account holdings, provided account statements to customers, accessed the firm's trading systems, and engaged in clerical and managerial functions on behalf of the firm, including emailing with firm vendors. The complaint also alleges that Zipper performed activities that required association with a FINRA member firm and registration as a General Securities Representative while his registrations were suspended. Zipper while statutorily disqualified performed activities that required association with a FINRA member firm. During the suspension period, Zipper solicited the sale of securities to the firm's customers and emailed with the firm's customers concerning securities. These activities required registration as a General Securities Representative. However, FINRA had suspended Zipper's General Securities Representative and other registrations with FINRA during this time and statutorily disqualified him from associating with the firm. The complaint further alleges that Zipper placed trades under another representative's joint or individual representative code when he actually effected the trades. Zipper caused incorrect recording of these trades on the firm's order memoranda and trade confirmations. Thereby, Zipper caused the firm to maintain inaccurate books and records and caused the firm's willful violation of Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-3 thereunder. Additionally, another principal and an associated person of the firm placed trades under the representative's individual or joint representative code when this principal actually effected these trades. The principal caused incorrect recording of these trades on the firm's order memoranda and trade confirmations. Further, the principal placed trades under Zipper's representative codes when this principal actually effected these trades. The principal again caused incorrect recording of these trades on the firm's order memoranda and trade confirmations. Zipper and the other principal, acted as principals of the firm when they entered the trades at issue. They knew the information they entered into the firm's trading system identifying the broker of record for these trades was false and inaccurate, as they each knew that they were the representative actually responsible for these transactions and they knew the representative was no longer associated with the firm.

Decision

Bar (Permanent)

all capacities

Indefinite

3/18/2019

Monetary Penalty other than Fines

$6,077.55

Hearing Panel decision rendered June 18, 2018. On June 20, 2018, Zipper appealed to the National Adjudicatory Council (NAC). NAC decision rendered March 18, 2019 wherein the findings made are modified and the sanctions imposed by the Hearing Panel are affirmed. The NAC affirms the Hearing Panel's findings that that Zipper and Dakota violated FINRA Rules 4511 and 2010 by intentionally misidentifying the representative of record for hundreds of transactions in the firm's books and records. However, the NAC further finds that, as a result of this misconduct, the firm willfully violated Section 17(a) of the Exchange Act and Exchange Act Rule 17a-3. On April 5, 2019, Zipper appealed the decision to the SEC. On December 21, 2020, the SEC affirmed FINRA's finding that Zipper associated with the firm while statutorily disqualified and suspended in all capacities. The SEC also affirmed FINRA's finding that the firm allowed Zipper to associate with it while statutorily disqualified and suspended. The SEC, however, set aside FINRA's finding that Zipper engaged, and the firm allowed him to engage, in activities requiring registration while he was suspended. The SEC held that a person who is suspended from associating with a FINRA member, but who is not ordered to requalify by examination, does not violate NASD Rule 1031 by engaging in conduct requiring registration while suspended. The SEC also affirmed FINRA's finding that Zipper and the firm maintained inaccurate books and records by misidentifying the representative of record on hundreds of transactions. The SEC remanded the proceeding to FINRA for redetermination of sanctions. NAC decision rendered March 16, 2022 wherein, on remand from the Securities and Exchange Commission, the NAC modified the sanctions imposed. In light of the bar imposed, the NAC assessed but did not impose a fine or suspension for Zipper's books and records violations. On April 2, 2022, Zipper appealed the decision to the SEC. SEC remand decision for reconsideration of sanctions rendered August 20, 2024 wherein the sanctions imposed by the NAC are sustained. The decision is final on October 21, 2024.

FINRA

Zipper is statutorily disqualified due to FINRA's acceptance, on April 22, 2016, of a Letter of Acceptance, Waiver and Consent (the Disqualifying AWC). The Disqualifying AWC found that Zipper willfully failed to disclose material information on his Uniform Application for Securities Industry Registration or Transfer (Form U4).

On October 1, 2018 the SEC dismissed the application for review filed by Zipper.

Denial

On October 2, 2017, the NAC issued Notice Pursuant to Section 19(d) of the Securities Exchange Act of 1934 and finds the Membership Continuance Application (MC-400) submitted on August 9, 2016 by Dakota Securities International, Inc. denied. FINRA found it not in public interest, and would create an unreasonable risk of harm to the market and investors, for Zipper to associate or continue to associate with the firm as a general securities representative. FINRA is not persuaded that the firm has structured an adequate plan of heightened supervision. The denial is in effect pending the Decision's finality. On October 11, 2017, Zipper appealed the decision to the SEC. The denial remains in effect while on appeal. On October 30, 2017, Zipper requested that the SEC stay the denial. The denial remains in effect until and unless the SEC grants the stay. On November 27, 2017, the SEC denied the request for a stay. On October 1, 2018 the SEC dismissed the application for review filed by Zipper.

Bankruptcy

FINRA

Without admitting or denying the findings Zipper consented to the sanctions and to the entry of findings that he and his member firm failed to establish, maintain, and enforce an adequate supervisory system to ensure that business-related text messages were subject to retention and supervision and failed to preserve all business-related text messages. The findings stated that the firm's WSPs also were inadequate in that they failed to require capturing, retention and preservation of all securities business-related electronic communications. The findings also stated that the firm failed to preserve and maintain all business-related electronic communications. More specifically, a firm registered principal used text messages in connection with the firm's securities-related business. The firm failed to capture the text messages, failed to retain and preserve the text messages for the required period, and failed to preserve the text messages in a non-rewritable, non-erasable format. Moreover, Zipper and the firm knew that the firm's registered principal was using text messages to conduct firm business. Zipper, in his capacity as the firm's CCO, was the person responsible for ensuring that the firm preserved the firm's registered principal's text messages.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$10,000.00

Suspension

a principal capacity

one month

5/31/2016

6/30/2016

failed to capture text messages from broker

FINRA

Without admitting or denying the findings the firm and Zipper consented to the sanctions and to the entry of findings that he willfully failed to timely amend his Form U4 to disclose unsatisfied judgments against him. The findings stated that Zipper knew that none of these judgments against him had been satisfied. Despite Zipper's knowledge of these unsatisfied judgments, Zipper willfully failed to timely amend his Form U4 to disclose the judgments within 30 days of learning of each of them.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All capacities

three months

5/31/2016

8/30/2016

In light of Zipper's financial status, a fine of $5,000 has been imposed. Respondent understands that this settlement includes a finding that he willfully omitted to state a material fact on a Form U4, and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of FINRA's By-Laws, this omission makes Respondent subject to a statutory disqualification with respect to association with a member.

updating form U-4 reflecting AWC acceptance by FINRA

$8,227.00

Civil

Judgment settled with monthly payments until satisfied

UNSUITABLE INVESTMENTS

$400,000.00

$50,000.00

The above applicant was a named respondent in the above complaint only

$1,872.00

Civil

Judgment is still pending

$11,083.00

Civil

this judgment is still open

FLORIDA OFFICE OF FINANCIAL REGULATION ("OFFICE")

ON 11/24/2009, THE OFFICE EXECUTED A STIPULATION AND CONSENT AGREEMENT IN THE MATTER OF DSII AND MR. ZIPPER AS COMPLIANCE OFFICER FOR DSII'S ANTI-MONEY LAUNDERING COMPLIANCE PROGRAM ALLEGING THE FOLLOWING: 1.) FAILURE TO PROVIDE INDEPENDENT TESTING OF DSII'S AML COMPLIANCE PROGRAM IN THAT FOR YEAR 2006 ZIPPER TESTED THE AML PROGRAM, AND; 2.) FAILURE TO ENFORCE WRITTEN SUPERVISORY PROCEDURES.

Order

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

ON 11/24/2009, THE OFFICE ENTERED A FINAL ORDER ADOPTING THE STIPULATION AND CONSENT AGREEMENT WHEREBY DSII AND MR. ZIPPER NEITHER ADMITTED NOR DENIED THE OFFICE'S FINDINGS BUT AGREED TO THE FOLLOWING: 1.) TO EITHER AMEND ITS PRACTICES TO BE CONSISTENT WITH ITS WRITTEN SUPERVISORY PROCEDURES OR AMEND ITS WRITTEN SUPERVISORY PROCEDURES TO BE CONSISTENT WITH ITS PRACTICES AND SUBMIT A REPORT TO THE OFFICE WITHIN 60 DAYS, 2.) TO AMEND ITS WRITTEN SUPERVISORY PROCEDURES TO COMPLY WITH THE PROVISIONS OF NASD CONDUCT RULE 3011 REGARDING THE INDEPENDENT TESTING REQUIREMENTS.

FLORIDA DIVISION OF SECURITIES AND INVESTOR PROTECT*See FAQ #1*

Not Provided

Stipulation and Consent

Monetary/Fine

$1,000.00

Cease and Desist/Injunction

ON NOVEMBER 17, 1995, THE FLORIDA DEPARTMENT OF BANKING AND FINANCE ENTERED INTO A STIPULATION AND CONSENT AGREEMENT AND FINAL ORDER WITH RESPONDENT BRUCE MARTIN ZIPPER. THE FINAL ORDER INCORPORATES THE STIPULATION AND CONSENT AGREEMENT IN WHICH RESPONDENT ZIPPER AGREES TO: CEASE AND DESIST FROM ANY AND ALL FUTURE VIOLATIONS OF CHAPTER 517, FLORIDA STATUTES, AND THE RULES THEREUNDER, AND PAY AN ADMINISTRATIVE FINE OF $1,000.

Not Provided

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Decision

Monetary/Fine

$5,000.00

Censure

Bar

Suspension

Not Provided

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Consent

Monetary/Fine

$1,000.00

Censure

COMPLAINT WAS FAILURE TO FILE YEARLY AUDIT ON A TIMELY BASIS AND ALLOWING FIRM TO VIOLATE NET CAPITOL REQUIREMENT. THIS COMPLAINT WAS SETTLED IN OF 1989 BY ME PAYING A FINE OF $1,000.00 '