Proceeding Numbers 20070094345, 20070111775

Hearing Panel Decision in Department of Enforcement v. John Edward Mullins and Kathleen Maria Mullins

August 25, 2009

Respondent John Edward Mullins (“J. Mullins”) is barred from associating with any FINRA member firm in any capacity for misusing customer funds, in violation of Conduct Rules 2110 and 2330(a), converting customer property, and violating his fiduciary obligations, in violation of Conduct Rule 2110. J. Mullins is not liable for attempting to convert funds from his FINRA member firm employer, in violation of Conduct Rule 2110. In light of the bar, no additional sanctions are imposed for material misstatements made by J. Mullins to his FINRA member firm employer on annual compliance questionnaires, in violation of Conduct Rules 2110 and 3110, or for borrowing funds from a customer without the approval of his employer firm, in violation of Conduct Rules 2110 and 2370.

 

Respondent Kathleen Maria Mullins (“K. Mullins”) is suspended in all capacities from associating with any FINRA member firm for six months and fined $15,000 for making material misstatements to her FINRA member firm employer on annual compliance questionnaires, in violation of Conduct Rules 2110 and 3110. Furthermore, K. Mullins is suspended in all capacities from associating with any FINRA member firm for an additional three months, and fined an additional $5,000, for borrowing funds from a customer without the approval of her employer firm, in violation of Conduct Rules 2110 and 2370. Finally, K. Mullins is ordered to requalify by examination before again becoming registered in any capacity in the securities industry.

 

The Respondents are assessed hearing costs.

 

This decision has been appealed.

View Decision (PDF 235 KB)