SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 42144 / November 16, 1999
Admin. Proc. File No. 3-9832
In the Matter of the Application of
KEITH L. MOHN
4678 Clinton Drive
West Bloomfield, Michigan 48324
For Review of Disciplinary Action Taken by the
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
OPINION OF THE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DISCIPLINARY
PROCEEDINGS
Violations of Conduct Rules
Conduct Inconsistent with Just and Equitable Principles of Trade
Failure to Inform Employer of Private Securities Transactions
Person associated with member firm engaged in private securities
transactions without prior written notification to member. Held,
association's findings of violation and sanctions it imposed are
sustained, except that the fine is reduced by $2,222.
APPEARANCES
Walter L. Baumgardner, Musilli, Baumgardner, Wagner & Parnell, P.C.,
for Keith L. Mohn.
Alden S. Adkins, Susan L. Beesley, and Deborah F. McIlroy, for NASD
Regulation, Inc.
Appeal filed February 22, 1999
Last brief received June 1, 1999
I.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
Person associated with member firm engaged in private securities transactions without prior
Held, association's findings of violation and sanctions it imposed are sustained, except that
Keith L. Mohn, formerly a registered investment company and variable contracts representative
Mohn worked at the Detroit Mohn General Agency, a franchisee of Hancock.
Mohn's wife, Lisa Mohn, was a registered representative.
In February 1993, Mohn forwarded Lisa Mohn's Form U-4 to Mariner Financial Services, Inc.,
While Martha Seger offered limited partnerships, Kassab had no prior knowledge of Citi Equity
John Shettler initially contacted the Mohn agency in response to a Hancock advertisement.
He formulated a financial plan that recommended, among other things, that the Shettlers
Mohn told the Shettlers that he would choose a tax credit program for them.
In March 1994, Mohn told the Shettlers that he had chosen such a program, Citi-South Carolina
Mohn completed the portions of the subscription agreement that designated the number of
Beginning in the fall of 1993, the Soehrens had a series of meetings with Mohn and Jordan
Mohn prepared a financial analysis that recommended that the Soehrens purchase an investment
Rule 3040requires that an associated person give the member firm prior written notice that
The Commission, however, has held that Rule 3040 prohibits an associated person from
Neither the Shettlers nor the Soehrens knew of Citi Equity before Mohn's presentation, and
Rule 3040makes clear that an associated person must give his or her member firm prior written
Mohn does not explain why his obligation to recommend any particular suitable investment was
Mohn notes that the NASD has recognized the competing demands of individuals who are both
He cites other proceedings involving a variety of violations in which lesser sanctions were
Under Section 19of the Exchange Act, we affirm the NASD's determination to impose a
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