Reilly, Michael M.
Michael M. Reilly (CRD # 4841098, Registered Principal, New York, New York) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $12,500 and suspended from association with any FINRA member in any capacity for 45 days. Reilly also agreed to fully and promptly cooperate with FINRA in any and all investigations and/or disciplinary proceedings, of any person or entity, concerning conduct at and/or relating to his member firm during the time he was associated with the firm and, in connection with his cooperation, promptly produce information and documents FINRA requests and appear and testify completely and truthfully at any FINRA interview and/or disciplinary hearing. Without admitting or denying the findings, Reilly consented to the described sanctions and to the entry of findings that he operated a securities business from an unregistered branch office, causing his member firm to violate the restriction on business expansion contained in its membership agreement with FINRA. The findings stated that, without requisite supervision, Reilly and others regularly used the branch office to cold-call prospective investors, open new customer accounts and/or cause securities transactions to be effected in customer accounts. The findings also stated that Reilly was actively engaged in the management and operation of the branch and exercised control over the operations at the branch office, and one individual, without requisite supervision, used the branch office to improperly solicit potential customers and made false representations, including unwarranted price predictions, omitted material facts and used misleading telemarketing scripts that a registered principal had never approved. The findings also included that Reilly caused his firm to violate NASD Rule 1017(a)(5) and NASD Interpretative Material 1004. FINRA found that by actively engaging in the management and operations of the branch office, Reilly acted in the capacity of a general securities principal without being so registered at that time. The suspension is in effect from November 16, 2009, through December 30, 2009. (FINRA Case # 2007007358603)
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