A broker has consented to pay a $10,000 fine and take a suspension of 15 business days in response to allegations that he incorrectly marked trades and prevented his firm’s compliance department from accurately monitoring the transactions.
Andrey V. Tkatchenko, a broker employed with New York-based broker-dealer and investment banking firm Fordham Financial Management from April 2008 through October 2010, submitted a letter of acceptance, waiver and consent that was accepted by the Financial Industry Regulatory Authority last week. In the letter, Tkatchenko consents to the allegations, while neither admitting or denying the findings.
A spokeswoman for Fordham declined to comment for this story. John Carris Investments, a New York-based investment banking firm where Tkatchenko is currently employed, also declined to comment. Tkatchenko’s attorney did not return a call for comment by press time.
During his employment at Fordham, Tkatchenko allegedly marked more than two dozen trade tickets or trade confirmations as “unsolicited,” when they should have been marked “solicited.” The trades in question occurred between April 28, 2008 and June 30, 2008 in the stock UniPixel Inc. The mislabeling resulted in the firm perceiving the transactions as initiated by customers, and subsequently not properly supervising or maintaining proper records on them.
“Tkatchenko’s failure to accurately report these transactions in UNXL prevented Fordham’s compliance department from exercising proper supervision over them because it misled the firm into believing that the intention to execute these trades had originated with customers,” according to the facts presented in the FINRA letter of acceptance, waiver and consent. “It also caused the firm to keep inaccurate records concerning these trades.”
With his consent, Tkatchenko waives the rights to have complaints filed against him regarding this matter, to have the opportunity to answer those complaints in writing, to have a disciplinary hearing in front of a panel and to appeal any resulting written decision. The consent will permanently be part of Tkatchenko’s public disciplinary records.
Tkatchenko’s 15-day suspension will prevent him from associating with any FINRA member firm from June 18 through July 9.