FINRA

Without admitting or denying the findings, Simoncic consented to the sanction and to the entry of findings that he churned customer accounts, engaged in excessive trading, and made unsuitable recommendations involving transactions in non-traditional exchange traded funds (ETFs) in five accounts held by two customers, one of whom was a senior investor. The findings stated that Simoncic exercised de facto control over and made all trading decisions for investments in the senior investor's IRA and the second customer's four accounts, including which specific securities to buy and sell, the quantity of securities to buy and sell, and when to buy and sell the securities. The customers relied completely upon Simoncic to manage their accounts and to make all investment decisions on their behalf. In the senior investor's account, Simoncic executed trades with principal values of the purchases and sales totaling approximately $1.80 million. In the second customer's accounts, Simoncic executed trades with principal values of the purchases and sales also totaling approximately $1.83 million. Simoncic charged these customers commissions and other fees totaling approximately $79,000. In just over a two-year period, Simoncic earned approximately 88 percent of his total gross commissions solely from these customers' accounts. Simoncic earned almost $77,000 in commissions while his customers' losses exceeded $105,000. Simoncic's level of trading in these accounts, which he controlled, was inconsistent with the customers' investment objectives and their financial situations, and he did so with reckless disregard for their interests. By virtue of the foregoing conduct, Simoncic willfully violated Section 10(b) of the Exchange Act of 1934 and Exchange Act Rule 10b-5, and violated FINRA Rule 2020. The findings also stated that Simoncic did not fully appreciate or understand the products' unique features and risks, particularly the risks associated with the daily reset of the securities. Based on the facts and circumstances of his ETF recommendations, Simoncic did not have reasonable grounds for believing that his recommendations of non-traditional ETFs were suitable for either customer.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

10/24/2018

willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5, and violated FINRA Rule 2020.

UNSUITABILITY. MONETARY DAMAGES OF $21,000 SOUGHT.

$21,000.00

$12,000.00

[CUSTOMER] INVESTED 250,000 WITH TRANSALASKA DEVELOPMENT CORP OF WHICH I WAS PRESIDENT. HIS SUIT ALLEGED FRAUD IN THE SALE OF OIL & GAS LEASES

$4,000,000.00

$65,000.00

THIS WAS A CIVIL ACTION THAT WAS SETTLED FOR 65,000. IT WAS LATER DISCHARGED IN BANKRUPTCY COURT. [CUSTOMER] INVESTED 250,000 WITH TRANSALASKA DEVELOPMENT CORP [CUSTOMER] SUED SEEKING 4,000,000. IT WAS SETTLED (SEE ATTACHED)

ALABAMA SECURITIES COMMISSION

A TEMPORARY CEASE & DESIST ORDER WAS ISSUED AGAINST TRANSALASKA DEVELOPMENT CORP OF WHICH I WAS PRESIDENT. IT ALLEGED WE HAD OFFERED FOR SALE OR SOLD INTEREST IN OIL & GAS LEASES. IT WAS ISSUED AFTER THE COMPANY CLOSED

Order

Cease and Desist/Injunction

PERMANENT CEASE & DESIST

STATE OF ALABAMA ALLEGED TRANSALASKA DEVELOPMENT SOLD OIL & GAS LEASES IN THE STATE OF ALABAMA. WE HAD NO CUSTOMERS IN THE STATE OF ALABAMA ACCORDING TO OUR RECORDS. THE C & D WAS ISSUED 1 MONTH AFTER THE COMPANY CLOSED DOWN. WE SAW NO POINT IN ANSWERING THE ALLEGATIONS (SEE ATTACHED