FINRA

FINRA RULES 2010, 2020, 3270, NASD RULES 3030, 3040: AKINDEMOWO INDUCED INDIVIDUALS TO INVEST A TOTAL OF $15,000 IN PRIVATE SECURITIES TRANSACTIONS. INSTEAD OF USING THE MONEY AS PROMISED, AKINDEMOWO MISAPPROPRIATED IT AND CONVERTED IT TO HIS OWN USE. HE NEVER REPAID THE MONEY. AKINDEMOWO ALSO FAILED TO PROVIDE WRITTEN NOTICE TO HIS MEMBER FIRM OF, AND OBTAIN ITS PERMISSION FOR OR ACKNOWLEDGMENT OF, HIS PARTICIPATION IN THE PRIVATE SECURITIES TRANSACTIONS DESCRIBED ABOVE. IN ADDITION, HE FAILED TO PROVIDE PROMPT WRITTEN NOTICE TO HIS FIRM ABOUT HIS CREATION OF AND PARTICIPATION IN AN OUTSIDE BUSINESS VENTURE. SHORTLY AFTER MAKING AN INDIVIDUAL'S INVESTMENT, THE INDIVIDUAL ASKED AKINDEMOWO TO PROVIDE HER WITH INFORMATION RELATING TO THE INVESTMENT, SUCH AS ACCOUNT STATEMENTS, A PROSPECTUS, OR A DESCRIPTION OF THE INVESTMENT. AKINDEMOWO DID NOT PROVIDE THE INFORMATION. THEREAFTER, THE INDIVIDUAL REQUESTED THAT HER PRINCIPAL BE RETURNED, AND AKINDEMOWO AGREED TO DO SO; HOWEVER, AKINDEMOWO DID NOT RETURN THE INDIVIDUAL'S PRINCIPAL, AND TO DATE HAS NOT DONE SO. AKINDEMOWO NEVER TOLD THE INDIVIDUAL THAT HER MONEY DID NOT IN FACT GO TO THE INVESTMENT. ANOTHER INDIVIDUAL AKINDEMOWO KNEW, CONTACTED HIM WHEN SHE WANTED TO INVEST MONEY AND SHE GAVE AKINDEMOWO A CHECK FOR $5,000, MADE OUT TO THE ENTITY HE HAD CREATED. THE INDIVIDUAL REPEATEDLY ASKED AKINDEMOWO TO PROVIDE INFORMATION OR DOCUMENTATION RELATING TO THE INVESTMENT. AKINDEMOWO NEVER DID SO. AFTER SEVERAL MONTHS OF UNSUCCESSFUL ATTEMPTS TO GET INFORMATION FROM AKINDEMOWO, SHE REQUESTED THE RETURN OF HER PRINCIPAL. AKINDEMOWO PROMISED TO REPAY HER, BUT DID NOT DO SO. TO DATE, AKINDEMOWO HAS NOT RETURNED ANY FUNDS TO THE INDIVIDUAL. AKINDEMOWO GAVE THE REAL ESTATE BROKER A $5,300 CHECK DRAWN ON HIS BUSINESS' BANK ACCOUNT. AT THE TIME HE GAVE HER THE CHECK, AKINDEMOWO KNEW THAT HE DID NOT HAVE SUFFICIENT FUNDS IN THE ACCOUNT TO HONOR IT. WHEN THE INDIVIDUAL TRIED TO CASH THE CHECK, IT WAS DENIED DUE TO INSUFFICIENT FUNDS IN THE ACCOUNT, THE OMISSION OF THE INDIVIDUAL'S LAST NAME ON THE PAYEE LINE, AND A DISCREPANCY BETWEEN THE NUMERICAL AND WRITTEN AMOUNTS ON THE CHECK. AKINDEMOWO INTENTIONALLY MISREPRESENTED MATERIAL FACTS ABOUT HOW THE FUNDS BEING INVESTED BY THE INDIVIDUALS WOULD BE USED AND ABOUT THE PURPOSE OF THE SUPPOSED INVESTMENT. IN ADDITION, HE INTENTIONALLY MISLED ONE INDIVIDUAL AS TO MATERIAL FACTS ABOUT WHEN SHE WOULD BE ABLE TO RECEIVE HER INVESTMENT BACK.

Order

Bar (Permanent)

All Capacities

12/29/2015

Disgorgement

$15,000.00

Monetary Penalty other than Fines

$4,444.11

prejudgment interest

HEARING PANEL DECISION RENDERED JANUARY 23, 2014 WHEREIN AKINDEMOWO IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR CONVERTING INVESTORS' FUNDS, IN VIOLATION OF FINRA RULE 2010, AND MAKING FRAUDULENT MISREPRESENTATIONS IN CONNECTION WITH THE SALE OF SECURITIES, IN VIOLATION OF FINRA RULES 2020 AND 2010. AKINDEMOWO IS BARRED FROM ASSOCIATING WITH ANY FINRA MEMBER FIRM IN ANY CAPACITY FOR EACH OF THESE VIOLATIONS. IN LIGHT OF THE BARS, NO FURTHER SANCTIONS ARE IMPOSED FOR ENGAGING IN PRIVATE SECURITIES TRANSACTIONS WITHOUT PROVIDING WRITTEN NOTICE TO HIS FIRM, IN VIOLATION OF NASD RULE 3040 AND FINRA RULE 2010, AND ENGAGING IN OUTSIDE BUSINESS ACTIVITIES WITHOUT PROVIDING WRITTEN NOTICE TO HIS FIRM, IN VIOLATION OF NASD RULE 3030 AND FINRA RULES 3270 AND 2010. RESPONDENT IS ALSO ORDERED TO PAY COSTS IN THE AMOUNT OF $2,954.85. ON FEBRUARY 14, 2014, AKINDEMOWO APPEALED TO THE NATIONAL ADJUDICATORY COUNCIL (NAC) AND THE SANCTION IS NOT IN EFFECT PENDING THE APPEAL. NAC decision rendered December 29, 2015, wherein the findings made are affirmed and the sanctions imposed by the Hearing Panel are modified to order disgorgement. Akindemowo was barred from association with any FINRA member in any capacity, required to pay $15,000, plus prejudgment interest, in disgorgement and ordered to pay $2,954.85 in hearing costs and $1,489.26 in appeal costs for a total of $4,444.11. The sanctions were based on findings that Akindemowo converted the funds of two women by inducing them to invest an aggregate of $15,000 in purported private securities transactions that would yield profits, and that he did so by intentionally making fraudulent misrepresentations. The findings stated that Akindemowo exploited his personal relationships with the women and persuaded them to give him the money based upon his misrepresentation that their funds would be invested. Instead, Akindemowo deposited their funds in an account that he controlled and used the funds for his personal expenses. Both women complained to Akindemowo's member firm after numerous requests to Akindemowo for documentation of their investments. The firm refunded both women their investments, plus interest. Akindemowo was permitted to resign while he was under investigation with the firm. The findings also stated that Akindemowo engaged in private securities transactions, which were outside the regular course and scope of his employment with his member firm, without prior written notice to and written permission from the firm. Akindemowo engaged in outside business activities without providing written notice to his firm about his efforts to establish an insurance agency and that he incorporated a legal entity. The bar is in effect as of December 29, 2015. On January 29, 2016, this matter was appealed to the SEC and the sanctions, except for the bar, are not in effect pending review. On June 28, 2016, Akindemowo filed a motion requesting a stay of the bar pending his appeal to the Commission. FINRA opposed his motion. On July 18, 2016, the SEC denied Akindemowo's motion. SEC Decision rendered September 30, 2016 wherein the findings made are held and the sanctions imposed by the NAC are sustained. The decision is final on November 29, 2016.