First Union Brokerage Services Fined $5,000 for Unlicensed Activity

BEFORE THE DIRECTOR OF THE DEPARTMENT OF FINANCE OF THE STATE OF IDAHO IDAHO DEPARTMENT OF FINANCE, Complainant, vs. FIRST UNION BROKERAGE SERVICES, INC. I Respondent. A. RESPONDENT Docket No. 1996-7-74 AGREEMENT AND ORDER First Union Brokerage Services, Inc. (Respondent) has been a registered broker-dealer with the NASD since February 14, 1980. became registered as a broker-dealer in Idaho on March 26, 1996. B. FACTS submitted an application for registration as a broker-dealer on December 27, 1995. Based upon the Respondent's prior disciplinary history as reported by CRD, was asked to provide a list of all accounts already established in Idaho and to note any trading activity. provided a list of five Idaho accounts with varying account activity. Specifically, purchased and sold securities in the accounts of five Idaho residents without being licensed as a broker-dealer in Idaho. purchased and sold securities for the accounts of five Idaho residents through representatives which were not licensed as agents in Idaho. AGREEMENT AND ORDER

1. FINDINGS 1. sold securities in Idaho without being registered as a broker-dealer in Idaho. 2. sold securities in Idaho through its agents that were not registered in Idaho. D. VIOLATIONS The Complainant has alleged violations of the Idaho Securities Act by Respondent, specifically: 1. Idaho Code Section 30-1406--Failure to register as a broker-dealer in Idaho before transacting securities business and failure to register agents in Idaho before transacting business. E. REMEDY The parties desire to resolve this matter informally without a public hearing. In resolution of this matter, agrees as follows: 1. represents that the information provided to Complainant regarding the alleged • , J.... I VlO.i.at.l.OnS of the Idaho Securities Act is accurate and complete. 2. admits violations of the Idaho Securities Act, specifically those "Findings" and "Violations" identified herein. 3. will make an offer of rescission to the Idaho residents to whom securities were sold. AGREEMENT AND ORDER -
2. will pay a fine of five thousand dollars ($5,000) to the Complainant. Payment will be made within thirty (30) days of the date of this Order. 5. agrees to comply with the provisions of the Idaho Securities Act in the future. DONE AND DATED at Boise, Idaho this day of SeJIJ!tember 1996. FIRST UNION BROKERAGE SERVICES, INC. BY: 8k,7V)~/ NAME : :;p w 1 ] ~ J-c_ VV[ o 0 1 Title: f f<._e5 IOU..~ , Securities Bureau Department of Finance State of Idaho IT IS SO ORDERED This S'ff-7<, day of ~st, Director of Finance