Facts

FINRA's Department of Market Regulation filed a complaint, claiming respondents Peter Julius Auzers and Shiva Naby violated FINRA and MSRB rules by altering documents provided to FINRA in response to a Rule 8210 Request for Information.

CLAIMANT'S CONTENTIONS:
On April 10, 2012, the Market Regulation staff sent a FINRA Rule 8210 request for documents requesting information about Wedbush Securities Inc.'s supervision of its reporting of municipal securities transactions during the fourth quarter of 2011. Claimant alleged that on two occasions respondents created and produced falsified and misleading documents, in connection with the staff's review of the firm's reporting of municipal securities transactions in order to give the false impression that the firm conducted and evidenced supervisory reviews of MSRB Report Cards during the review period.

Claimant alleged respondents willfully violated MSRB Rule G-17, and FINRA Rules 8210 and 2010.

RESPONDENTS' CONTENTIONS:
Auzers contended that he did not alter any documents and that Department of Market Regulation's cause of action for violation of MRSB Rule G-17 was legally and factually deficient.

Naby contended that she made an innocent mistake in judgment and that the Department of Market Regulation's cause of action for violation of MSRB Rule G-17 was legally deficient.

Result

All claims against Auzers were dismissed. Naby was found to have violated FINRA rules, and was fined $25,000 and suspended from associating with a FINRA member firm in any capacity for two years. She was also ordered to pay $5,225 for the cost of the hearing.

Other Information

Naby has filed an appeal. The Department of Market Regulation has not appealed the dismissal of all claims against Auzers. HEARING OFFICER: Carla Carloni. FILING DATE: Dec. 18, 2014.