Robert Wesley Stout (CRD # 1356443, Registered Principal, Arlington, Texas) submitted an Offer of Settlement in which he was fined $20,000 and suspended from association with any FINRA member in any principal capacity for 20 business days. Without admitting or denying the allegations, Stout consented to the described sanctions and to the entry of findings that he failed to establish, maintain and enforce adequate written supervisory procedures to ensure compliance with FINRA rules and with SEC and Federal Reserve Board rules and regulations. The findings stated that Stout failed to ensure that firm customers fully paid for cash transactions within the time allotted by the Federal Reserve Board Regulation T, in that the firm failed to cancel the transactions, liquidate the transactions or freeze the accounts when customers failed to make full payment on purchase transactions in cash accounts within five full business days. The findings also stated that Stout failed to review, initial and maintain daily purchase and sales blotters at the main office; failed to make the determination to implement heightened supervision for individuals who met its written supervisory procedures requiring a determination; and failed to establish compliance procedures for setting commissions and markups, and failed to establish supervisory procedures to detect excessive commissions and markups. The findings also included that Stout failed to ensure that an individual actively engaged in managing the firm’s securities business was registered as a principal or in any other capacity. FINRA found that Stout failed to maintain firm records in an easily accessible place and failed to promptly produce the records. FINRA also found that Stout failed to respond to FINRA requests to produce new account forms, customer confirmations and order memoranda because they were maintained at a branch office, thereby causing his firm to be in violation of SEC rules. The suspension was in effect from October 19, 2009, through November 13, 2009. (FINRA Case # E062005003202)

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