A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured and fined $40,000. Mauceli was fined $5,000 and suspended from association with any FINRA® member in any principal capacity for four months. Without admitting or denying the findings, the firm and Mauceli consented to the sanctions and to the entry of findings that the firm, acting through Mauceli, the firm’s president, failed to notify investors in a timely manner of a right of rescission following the issuance of an updated general partners audited balance sheet and approval of a revised prospectus. The findings stated that the firm served as the broker-dealer selling an oil and gas drilling and income fund limited partnership for an issuer. The firm, acting through Mauceli and the issuer, decided not to send the revised prospectus and a notice offering each investor an opportunity to confirm or rescind his or her investment decision, despite the requirements of the prospectus, due to low prices in the oil and gas market. FINRA discovered that the firm had not provided the revised prospectus and notice to the vast majority of the investors in the income fund. After FINRA raised the issue, the firm eventually sent the revised prospectus and notice to the remaining investors, whereupon several investors rescinded their investment. The findings also stated that the firm distributed communications related to a real estate investment trust offering to investors that failed to provide balanced presentation or a sound basis for evaluating the investments being promoted, contained misleading and unwarranted claims and, in addition, made prohibited investor profit projections. The suspension is in effect from May 7, 2018, through September 6, 2018. (FINRA Case #2015043469001)
