Enforcement: FINRA enforcement bulletin 2010 10 includes disturbing failures

Guy Steven Amico, Wellington Florida - four months suspension and required to undertake eight hours training relating to Anti Money Laundering within six months.

"Without admitting or denying the findings, Amico consented to the described sanctions and to the entry of findings that, as his member firm's president he knew or should have known of substantive [breaches] of FINRA rules and he failed to adequately supervise the firm's chief financial officers and AML Compliance officers" amongst other findings.

Intermountain Financial Services, Inc. Censured and fined USD12.750.

Kent Duane Sweat. Fined USD7.500; barred from association with any FINRA member for five days.

"the firm, acting through Sweat, failed to enforce its written supervisory procedures pertaining to its annual compliance meeting, branch office inspections, outside business activities, outside securities accounts, regulation SP, hiring practices and use of personal computers. Failed to maintain copies of registered representatives' incoming and outgoing correspondence with the public relating to its securities business and failed to maintain evidence of review as NASD rules and firm procedures required. "

Seaboard Securities, Inc Fined USD125,000 Anthony Joseph DiGiovanni Sr fined USD10,000*, Anthony Joseph DiGiovanni Jr fined USD35,000, Sonya Terez Still fined USD10,000* All the individuals suffered periods of suspension.

* These fines are joint and several liability between the company and the individuals concerned.

The firm, through Jr, "participated in the distribution of unregistered thinly traded securities resulting in proceeds of more than USD3.8 million proceeds (USD400,000 commissions) and failed to undertake proper enquiry as to the status" (registered or otherwise) of the shares. The firm "accepted the self-serving statements of its customers and counsel that the shares were exempt and ignored [warning signs] that the customers and the firm were participating in a scheme to evade registration requirements. ... Still, as compliance officer, failed to establish and maintain adequate policies and procedures, including written supervisory procedures, reasonably designed to achieve compliance with applicable laws, rules and regulations with respect to the sale of unregistered securities and ... failed to develop and implement AML policies and procedures and internal controls ... ignored numerous [warning signs] involving potentially suspicious activities and thus failed to investigate and report... in accordance iwth the firm's procedures and the requirements of [the Bank Secrecy Act, etc.]