SEC Orders Proceedings Against FTN Representative

Jack Humphrey, Regulatory journalist
January 14, 2012 /

The Securities and Exchange Commission has ordered public administrative proceedings against Stephen M. Folan.

Folan has submitted an Offer of Settlement, which the SEC accepted. He also consented to the entry of the order instituting administrative proceedings pursuant to Sections 15(b) and 15B(c) of the Securities Exchange Act of 1934, imposing remedial sanctions.

From at least January 2005 until March 2011, Folan was a registered
representative associated with FTN Financial Securities Corporation, a broker-dealer registered with the SEC, and with FTN Financial Capital Markets, a municipal securities dealer registered with the SEC.

Folan, age 48, is a resident of Plainfield, Illinois. On December 16, 2011, a final judgment was entered by consent against Folan, permanently enjoining him from aiding and abetting future violations of Section 206(2) of the Investment Advisers Act of 1940 in the United States District Court for the Northern District of Illinois.

The Commission’s complaint alleged that, in connection with a year-end
2006 repurchase transaction between FTN Financial Securities Corporation and the registered investment adviser Sentinel Management Group, Inc., Sentinel provided materially misleading financial statements and made other related material misstatements to its clients.

Folan was barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and barred from participating in any offering of a penny stock, including acting as a
promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.

 

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