James Russell McCarthy Jr. (CRD # 1123445, Registered Principal, Southborough, Massachusetts) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $20,000 and suspended from association with any FINRA member in any principal capacity for two months. The fine must be paid pursuant to an installment payment plan either immediately upon McCarthy’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, McCarthy consented to the described sanctions and to the entry of findings that he permitted an individual to perform functions requiring principal registration without being registered with FINRA in that capacity. The findings stated that McCarthy failed to enforce his member firm’s written supervisory procedures requiring that a Watch/Restricted list be maintained while the firm participated in underwriting activities. The findings also stated that McCarthy failed to file a Suspicious Activity Report (SAR) in connection with suspicious stock transactions and wire activity involving the sale of over one billion shares of a sub-penny stock from the account of one customer resulting in total proceeds of over $786,000.