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FINRA Bars Broker and Expels His Firm for Violating Suspension Terms

The Financial Industry Regulatory Authority hearing panel has permanently barred broker Bruce Martin Zipper of Miami, Florida, for continuing to conduct firm business while serving a three-month suspension.

The Financial Industry Regulatory Authority hearing panel has permanently barred broker Bruce Martin Zipper of Miami, Florida, for continuing to conduct firm business while serving a three-month suspension.

The regulators also expelled his firm, Dakota Securities, from FINRA membership for not adequately supervising Zipper, allowing him to associate while suspended (and later while statutorily disqualified), and for falsifying books and records.

In April 2016, Zipper entered into a settlement with FINRA’s Department of Enforcement agreeing to pay a $5,000 fine and serve a 3-month suspension for failing to disclose three outstanding judgments.

At the time, Zipper was a principal at a Dakota Securities, a small broker-dealer that operated as a “one man shop” where Zipper wore “all the hats.” After agreeing to the settlement, Zipper notified FINRA that he was bringing another broker into his firm to conduct firm business during his suspension.

However, after his suspension started in May 2016, FINRA claims that Zipper never stopped his association with Dakota and continued soliciting customers, conducted business with the firm’s clearing broker, and generally operated the firm.

In its disciplinary complaint, FINRA’s Department of Enforcement charged Zipper with violating his settlement agreement. The complaint also charged Dakota with allowing Zipper to associate with the firm while suspended and statutorily disqualified, failing to implement adequate supervisory procedures, and maintaining false books and records.

The panel noted that during the suspension, Zipper regularly communicated with Dakota’s clearing firm and vendors regarding the firm’s ongoing operations, as well as with several firm customers in order to provide access to the firm’s website, client brokerage statements, and other records. Zipper allegedly provided investment analysis and recommendations to clients that led to securities purchases.

During the latter part of his suspension in August 2016, FINRA claims that Zipper personally negotiated a settlement in an arbitration case against Dakota.

Unless the hearing panel’s decision is appealed to FINRA’s National Adjudicatory Council, or is called for review by the NAC, the decision becomes final after 45 days.

Over his 35-year broker career, Zipper was affiliated with a number of firms including Sterling Financial Group, Newbridge Securities, First Montauk Securities, Shochet Securities, among others.

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