Proceeding Number 2009018819001

Extended Hearing Panel Decision in Department of Enforcement v. Nicholas D. Skaltsounis, Respondent 2, and John B. Guyette

December 6, 2011

Respondent John B. Guyette (i) misrepresented and omitted material facts when he sold securities to customers, violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and NASD Conduct Rules 2110, 2120, and IM-2310-2; and (ii) made unsuitable investment recommendations to two customers, violating NASD Conduct Rules 2110, 2310, and IM-2310-2. For these violations, he is suspended from association in any capacity with any FINRA member firm for one year, and fined $86,140, which includes disgorgement of commissions. In addition, he is ordered to pay hearing costs.

 

Respondent Nicholas D. Skaltsounis allowed sales of securities to customers by registered representatives without disclosure of material facts, and permitted registered representatives to use a document containing a material misstatement of fact in the sales of securities, violating NASD Conduct Rule 2110. For this misconduct, he is suspended from associating in any principal capacity with any FINRA member firm for three months, suspended in all capacities for 30 days, and fined $10,000. In addition, he is ordered to pay hearing costs.

 

Respondent 2 is not liable for the violations of NASD Conduct Rules 2110 and 3010 alleged against him. Those charges are therefore dismissed.

 

This decision has been appealed.

View Decision (PDF 126 KB)