SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 39796 / March 25, 1998
Admin. Proc. File No. 3-9206
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:
In the Matter of the Application of :
:
JAMES A. GOETZ :
983 12th Avenue :
Dickinson, ND 58601 :
:
For Review of Disciplinary Action Taken by the :
:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. :
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OPINION OF THE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DISCIPLINARY PROCEEDINGS
Violations of Rules of Fair Practice
Conduct Inconsistent with Just and Equitable
Principles of Trade
Associated person of member firms obtained $1,600, as a donation for his
daughter's private high school, through his member firm's matching gifts
program, by misrepresenting that he had contributed, as required, personal
funds in that same amount. Representative also knowingly received a
tuition offset in return for the matching gift, in further violation of the
terms of the firm's program. Held, association's finding of violations
sustained, but sanctions imposed modified.
APPEARANCES:
Daniel J. Chapman, of Chapman & Chapman, P.C.,
for James A. Goetz.
Norman Sue, Jr. and Vickie R. Olafson, for NASD Regulation, Inc.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Associated person of member firms obtained $1,600, as a donation for his daughter's private
Representative also knowingly received a tuition offset in return for the matching gift, in
Held, association's finding of violations sustained, but sanctions imposed modified.
James A. Goetz, formerly an investment company and variable contract products representative
Corporation, members of the National Association of Securities Dealers, Inc. ("NASD"),
The NASD also found that Goetz knew or should have known that the funds contributed by the
Goetz stated that he first learned about the Program through another Prudential employee,
Goetz submitted four separate applications to the Program.
This gift, is made from my personal funds or property, fully qualifies as a charitable
Moreover, the record supports the NASD's additional finding that Goetz benefited personally
While Goetz admits that he did not donate personal funds or property, he nonetheless insists
When questioned initially about the matter by a Prudential investigator, Goetz did not advise
Moreover, the application form specifies that a donation made other than by cash, check, or
Goetz acknowledges that he was aware that his daughter's tuition was being paid out of a
Goetz's misconduct here -- disregarding his employer's foundation's fundamental rules for
However, we view the bar imposed by the National Business Conduct Committee, to which Goetz
We sustain the additional sanctions imposed as neither excessive nor oppressive.
The District Committee found that, "ven if had characterized the Program as alleged by
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