lincoln investment · lincoln investment crd# 519 sec# 8-14354 main office location 601 office...

BrokerCheck Report

LINCOLN INVESTMENT

Section Title

Report Summary

Firm History

CRD# 519

1

11

Firm Profile 2 - 10

Page(s)

Firm Operations 12 - 19

Disclosure Events 20

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LINCOLN INVESTMENT

CRD# 519

SEC# 8-14354

Main Office Location

601 OFFICE CENTER DRIVESUITE 300FORT WASHINGTON, PA 19034Regulated by FINRA Philadelphia Office

Mailing Address

601 OFFICE CENTER DRIVESUITE 100-MAILROOMFORT WASHINGTON, PA 19034

This firm is a brokerage firm and an investmentadviser firm. For more information aboutinvestment adviser firms, visit the SEC'sInvestment Adviser Public Disclosure website at:

Business Telephone Number

215-887-8111

https://www.adviserinfo.sec.gov

Report Summary for this Firm

This report summary provides an overview of the brokerage firm. Additional information for this firm can be foundin the detailed report.

Disclosure Events

Brokerage firms are required to disclose certaincriminal matters, regulatory actions, civil judicialproceedings and financial matters in which the firm orone of its control affiliates has been involved.

Are there events disclosed about this firm? Yes

The following types of disclosures have beenreported:

Type Count

Regulatory Event 6

Firm Profile

This firm is classified as a limited liability company.

This firm was formed in Pennsylvania on08/01/2015.

Its fiscal year ends in December.

Firm History

Information relating to the brokerage firm's historysuch as other business names and successions(e.g., mergers, acquisitions) can be found in thedetailed report.

Firm Operations

Is this brokerage firm currently suspended with anyregulator? No

This firm conducts 6 types of businesses.

This firm is affiliated with financial or investmentinstitutions.

This firm has referral or financial arrangements withother brokers or dealers.

This firm is registered with:

• the SEC• 1 Self-Regulatory Organization• 53 U.S. states and territories

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1©2020 FINRA. All rights reserved. Report about LINCOLN INVESTMENT

https://adviserinfo.sec.gov/firm/summary/519


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This firm is classified as a limited liability company.

This firm was formed in Pennsylvania on 08/01/2015.

CRD#

This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailingaddresses, telephone number, and any alternate name by which the firm conducts business and where such name isused.

Firm Profile

Firm Names and Locations

Its fiscal year ends in December.

LINCOLN INVESTMENT PLANNING, LLC

SEC#

519

8-14354

Main Office Location

Mailing Address

Business Telephone Number

Doing business as LINCOLN INVESTMENT

215-887-8111

Regulated by FINRA Philadelphia Office

601 OFFICE CENTER DRIVESUITE 300FORT WASHINGTON, PA 19034

601 OFFICE CENTER DRIVESUITE 100-MAILROOMFORT WASHINGTON, PA 19034

Other Names of this Firm

Name Where is it used

THE LEGEND GROUP AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY 2©2020 FINRA. All rights reserved. Report about LINCOLN INVESTMENT





AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY

THE LINCOLN INVESTMENT COMPANIES AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY





This section provides information relating to all direct owners and executive officers of the brokerage firm.

Direct Owners and Executive Officers

Firm Profile

Position

Percentage of Ownership

Is this a public reportingcompany?

Position Start Date

Does this owner direct themanagement or policies ofthe firm?

LINCOLN INVESTMENT CAPITAL HOLDINGS, LLC

MEMBER/OWNER

75% or more

No

Domestic Entity

08/2015

Yes

Is this a domestic or foreignentity or an individual?

Legal Name & CRD# (if any):

Position



Position Start Date


BURA, KAREN DOUGHERTY

ASSISTANT TREASURER

Less than 5%

No

Individual

11/2014

No

1666006



Position


Position Start Date

FLAX, STEVEN NEIL

SR VICE-PRESIDENT, HUMAN RESOURCES

Less than 5%

Individual

01/2012

5655474








Direct Owners and Executive Officers (continued)

Firm Profile




Less than 5%

No

Yes

Position



Position Start Date


FORST, EDWARD SAMUEL JR

ELECTED MANAGER/PRESIDENT/CEO

Less than 5%

No

Individual

08/2015

Yes

708024



Position



Position Start Date


HOUSER, DENIS NEIL

SR VICE-PRESIDENT, BUSINESS DEVELOPMENT FOR CAPITAL ANALYSTS

Less than 5%

No

Individual

06/2012

Yes

1640242



KELM, CHRISTOPHER THOMAS

1694572








Firm Profile

Position



Position Start Date


VP, OPERATIONS/PRINCIPAL OPERATIONS OFFICER

Less than 5%

No

Individual

01/2019

No

1694572


Position



Position Start Date


KOERICK, DEIRDRE BRODERICK

SR VICE-PRESIDENT, CHIEF COMPLIANCE OFFICER

Less than 5%

No

Individual

04/2000

Yes

1029346



Position


Position Start Date


MCCARTHY, DIANE MULHERRIN

SR VICE-PRESIDENT/CHIEF FINANCIAL OFFICER/PRINCIPAL FINANCIALOFFICER

Less than 5%

Individual

09/2018

Yes

4923328









Firm Profile



No

Yes

Position



Position Start Date


MEHROTRA, SHASHI

SR VICE-PRESIDENT, CHIEF INVESTMENT STRATEGIST

Less than 5%

No

Individual

10/2019

Yes

2640875



Position



Position Start Date


PATTERSON, DEBRA ANN

SECRETARY

Less than 5%

No

Individual

12/2016

Yes

1066197



RAO, VELLORE GURURAJA

Individual

6052318









Firm Profile

Position



Position Start Date


VP, TECHNOLOGY

Less than 5%

No

Individual

01/2019

No


Position



Position Start Date


SCHU, JOHN DENNIS

SR VICE-PRESIDENT, BRANCH DEVELOPMENT

Less than 5%

No

Individual

07/1997

Yes

1036737



Position


Position Start Date


SHIVERS, RAYMOND PAUL III

SR VICE-PRESIDENT, OPERATIONS AND TECHNOLOGY / CHIEFOPERATING OFFICER

Less than 5%

Individual

01/2019

Yes

4205724









Firm Profile



No

Yes






This section provides information relating to any indirect owners of the brokerage firm.

Indirect Owners

Firm Profile

LINCOLN INVESTMENT GROUP HOLDINGS, INC.

INDIRECT OWNER

LINCOLN INVESTMENT CAPITAL HOLDINGS, LLC

75% or more

No

Domestic Entity

08/2015

Yes



Company through whichindirect ownership isestablished

Relationship to Direct Owner

Relationship Established









Firm History

This section provides information relating to any successions (e.g., mergers, acquisitions) involving the firm.

08/01/2015Date of Succession:

This firm was previously:

Predecessor SEC#:

LINCOLN INVESTMENT PLANNING, INC.

8-14354

519Predecessor CRD#:

Description LINCOLN INVESTMENT PLANNING, INC. CHANGED ITS LEGAL STATUSFROM A SUBCHAPTER S CORPORATION TO A LIMITED LIABILITY COMPANY(LLC) EFFECTIVE 8/1/2015. ALL ASSETS AND LIABILITIES WERE ASSUMEDBY THE SUCCESSOR AND THERE WAS NO CHANGE IN OWNERSHIP ORCONTROL. ON 8/3/2015, THE DIRECT OWNER WAS CHANGED FROMLINCOLN INVESTMENT GROUP HOLDINGS, INC. TO LINCOLN INVESTMENTCAPITAL HOLDINGS, LLC. LINCOLN INVESTMENT GROUP HOLDINGS, INC.THEN BECAME THE INDIRECT OWNER.

08/01/2015Date of Succession:

This firm was previously:

Predecessor SEC#:

LINCOLN INVESTMENT PLANNING, INC.

8-14354

519Predecessor CRD#:

Description LINCOLN INVESTMENT PLANNING, INC. IS CHANGING ITS LEGAL STATUSFROM AN SUBCHAPTER S CORPORATION TO A LIMITED LIABILITYCOMPANY (LLC). ALL ASSETS AND LIABILITIES WILL BE ASSUMED BY THESUCCESSOR.






Firm Operations

RegistrationsThis section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatoryorganizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered andlicensed, the date the license became effective, and certain information about the firm's SEC registration.

This firm is currently registered with the SEC, 1 SRO and 53 U.S. states and territories.

SEC Registration Questions

This firm is registered with the SEC as:

A broker-dealer:

A broker-dealer and government securities broker or dealer:

A government securities broker or dealer only:

This firm has ceased activity as a government securities broker or dealer:

Yes

Yes

No

No

Federal Regulator Status Date Effective

SEC Approved 01/14/1969

Self-Regulatory Organization Status Date Effective

FINRA Approved 01/22/1969






Firm Operations

Registrations (continued)

U.S. States &Territories

Status Date Effective

Alabama Approved 02/08/1988

Alaska Approved 11/19/1986

Arizona Approved 07/31/1986

Arkansas Approved 04/26/1990

California Approved 11/05/1986

Colorado Approved 03/24/1988

Connecticut Approved 03/24/1986

Delaware Approved 08/20/1982

District of Columbia Approved 03/04/1987

Florida Approved 04/27/1983

Georgia Approved 09/21/1981

Hawaii Approved 08/13/1987

Idaho Approved 01/25/1988

Illinois Approved 07/14/1986

Indiana Approved 05/28/1987

Iowa Approved 07/22/2010

Kansas Approved 07/21/1987

Kentucky Approved 10/02/1986

Louisiana Approved 08/17/1987

Maine Approved 07/22/1987

Maryland Approved 07/08/1985

Massachusetts Approved 05/28/1987

Michigan Approved 07/27/1987

Minnesota Approved 07/15/1986

Mississippi Approved 02/22/1988

Missouri Approved 02/09/1988

Montana Approved 07/21/1987

Nebraska Approved 07/07/1987

Nevada Approved 05/27/1987

New Hampshire Approved 03/03/1988

New Jersey Approved 07/13/1983

New Mexico Approved 09/23/1988

New York Approved 06/17/1982

U.S. States &Territories

Status Date Effective

North Carolina Approved 01/13/1988

North Dakota Approved 04/19/1988

Ohio Approved 07/07/1986

Oklahoma Approved 06/09/1987

Oregon Approved 03/24/1988

Pennsylvania Approved 01/21/1969

Puerto Rico Approved 05/29/2012

Rhode Island Approved 12/13/1985

South Carolina Approved 03/25/1988

South Dakota Approved 06/12/1987

Tennessee Approved 03/13/1987

Texas Approved 01/30/1985

Utah Approved 09/02/1987

Vermont Approved 09/04/1987

Virgin Islands Approved 04/30/2012

Virginia Approved 09/22/1981

Washington Approved 08/20/1986

West Virginia Approved 07/29/1986

Wisconsin Approved 05/04/1989

Wyoming Approved 09/13/1988






Firm Operations

Types of BusinessThis section provides the types of business, including non-securities business, the brokerage firm is engaged in orexpects to be engaged in.

Other Types of Business

This firm does not effect transactions in commodities, commodity futures, or commodity options.This firm does engage in other non-securities business.

Non-Securities Business Description: 13B RETIREMENT PLAN ADMINISTRATION: LINCOLN IS ADMINISTRATIVEAGENT FOR THE CUSTODIAN (UMB BANK, N.A.) OF LINCOLN'SSPONSORED CUSTODIAL RETIREMENT PROGRAMS.

This firm currently conducts 6 types of businesses.

Types of Business

Mutual fund retailer

U S. government securities broker

Municipal securities broker

Broker or dealer selling variable life insurance or annuities

Investment advisory services

Broker or dealer involved in a networking, kiosk or similar arrangment with a: bank, savings bank or association, orcredit union






Firm Operations

Clearing Arrangements

This firm does not hold or maintain funds or securities or provide clearing services for other broker-dealer(s).

Introducing Arrangements

This firm does refer or introduce customers to other brokers and dealers.

Name: PERSHING LLC

Business Address: ONE PERSHING PLAZAJERSEY CITY, NJ 07399

CRD #: 7560

Effective Date: 12/15/1996

Description: LINCOLN INVESTMENT HAS A FULLY DISCLOSED CLEARINGAGREEMENT WITH PERSHING LLC.

PRIOR TO MARCH, 1997, LINCOLN HAD A FULLY DISCLOSED CLEARINGAGREEMENT WITH WHEAT FIRST SECURITIES, INC.






Firm Operations

Industry Arrangements

This firm does have books or records maintained by a third party.

This firm does have accounts, funds, or securities maintained by a third party.

This firm does have customer accounts, funds, or securities maintained by a third party.

Name: PERSHING LLC


CRD #: 7560




Name: PERSHING LLC


CRD #: 7560




Name: PERSHING LLC


CRD #: 7560









Firm Operations

Industry Arrangements (continued)

This firm does not have individuals who control its management or policies through agreement.

This firm does not have individuals who wholly or partly finance the firm's business.

Control Persons/Financing






Firm Operations

Organization AffiliatesThis section provides information on control relationships the firm has with other firms in the securities, investmentadvisory, or banking business.

This firm is, directly or indirectly:

· in control of· controlled by· or under common control withthe following partnerships, corporations, or other organizations engaged in the securities or investmentadvisory business.

Yes

No

No

01/01/2017

4600 EAST PARK DRIVESUITE 300PALM BEACH GARDENS, FL 33410

104761

LEGEND ADVISORY, LLC is under common control with the firm.

UNDER COMMON CONTROL AND OWNERSHIP BY LINCOLN INVESTMENTCAPITAL HOLDINGS, LLC ("LICH"). LINCOLN INVESTMENT GROUPHOLDINGS, INC. IS A MAJORITY OWNER OF LICH.

Description:

Investment AdvisoryActivities:

Securities Activities:

Country:

Foreign Entity:

Effective Date:

Business Address:

CRD #:

Yes

No

No

06/01/2012

601 OFFICE CENTER DRIVESUITE 300FORT WASHINGTON, PA 19034

162200

CAPITAL ANALYSTS is under common control with the firm.

Investment AdvisoryActivities:

Securities Activities:

Country:

Foreign Entity:

Effective Date:

Business Address:

CRD #:






Firm Operations

Organization Affiliates (continued)

UNDER COMMON CONTROL AND OWNERSHIP BY LINCOLN INVESTMENTCAPITAL HOLDINGS, LLC. ("LICH"). LINCOLN INVESTMENT GROUPHOLDINGS, INC. IS A MAJORITY OWNER OF LICH.

Description:

This firm is not directly or indirectly, controlled by the following:

· bank holding company· national bank· state member bank of the Federal Reserve System· state non-member bank· savings bank or association· credit union· or foreign bank






Disclosure Events

All firms registered to sell securities or provide investment advice are required to disclose regulatory actions, criminal orcivil judicial proceedings, and certain financial matters in which the firm or one of its control affiliates has been involved.For your convenience, below is a matrix of the number and status of disclosure events involving this brokerage firm orone of its control affiliates. Further information regarding these events can be found in the subsequent pages of thisreport.

Final On AppealPending

Regulatory Event 0 6 0






Disclosure Event Details

What you should know about reported disclosure events:

1. BrokerCheck provides details for any disclosure event that was reported in CRD. It also includessummary information regarding FINRA arbitration awards in cases where the brokerage firm wasnamed as a respondent.

2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a brokerage firm is required to disclose a

particular criminal event.3. Disclosure events in BrokerCheck reports come from different sources:

o Disclosure events for this brokerage firm were reported by the firm and/or regulators. When the firmand a regulator report information for the same event, both versions of the event will appear in theBrokerCheck report. The different versions will be separated by a solid line with the reporting sourcelabeled.

4. There are different statuses and dispositions for disclosure events: o A disclosure event may have a status of pending, on appeal, or final.

§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently

being appealed.§ A "final" event has been concluded and its resolution is not subject to change.

o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter,

or (2) an administrative panel in an action brought by a regulator that is contested by the partycharged with some alleged wrongdoing.

§ A "settled" matter generally involves an agreement by the parties to resolve the matter.Please note that firms may choose to settle customer disputes or regulatory matters forbusiness or other reasons.

§ A "resolved" matter usually involves no payment to the customer and no finding ofwrongdoing on the part of the individual broker. Such matters generally involve customerdisputes.

5. You may wish to contact the brokerage firm to obtain further information regarding any of thedisclosure events contained in this BrokerCheck report.

Regulatory - Final

This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a statesecurities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission,foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation orsuspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federalcontractor.

Disclosure 1 of 6

Reporting Source: Regulator

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOIMPLEMENT REASONABLY DESIGNED SURVEILLANCE PROCEDURES TOMONITOR ITS REGISTERED REPRESENTATIVES' RATES OF EFFECTINGVARIABLE ANNUITY EXCHANGES. THE FINDINGS STATED THAT THE FIRMONLY TRACKED EXCHANGES WHERE IT WAS THE BROKER OF RECORDFOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED. IN SO DOING,THE FIRM DID NOT TRACK VARIABLE ANNUITY EXCHANGES WHERE THEFIRM WAS NOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITYTHAT WAS BEING EXCHANGED. THE FINDINGS ALSO STATED THAT MORETHAN HALF OF THE APPROXIMATELY 2,800 VARIABLE ANNUITYEXCHANGES EFFECTED BY THE FIRM'S REPRESENTATIVES WEREEXCLUDED FROM ITS SURVEILLANCE REPORT BECAUSE LINCOLN WASNOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITY THAT WASBEING EXCHANGED. AFTER FINRA RAISED THIS ISSUE WITH THE FIRM, ITCORRECTED ITS SURVEILLANCE REPORT TO INCLUDE ALL VARIABLEANNUITY EXCHANGES.

Current Status: Final






Initiated By: FINRA

Principal Sanction(s)/ReliefSought:

Other Sanction(s)/ReliefSought:

Date Initiated: 09/25/2018

Docket/Case Number: 2017052410201

Principal Product Type: Annuity(ies) - Variable

Other Product Type(s):

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOIMPLEMENT REASONABLY DESIGNED SURVEILLANCE PROCEDURES TOMONITOR ITS REGISTERED REPRESENTATIVES' RATES OF EFFECTINGVARIABLE ANNUITY EXCHANGES. THE FINDINGS STATED THAT THE FIRMONLY TRACKED EXCHANGES WHERE IT WAS THE BROKER OF RECORDFOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED. IN SO DOING,THE FIRM DID NOT TRACK VARIABLE ANNUITY EXCHANGES WHERE THEFIRM WAS NOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITYTHAT WAS BEING EXCHANGED. THE FINDINGS ALSO STATED THAT MORETHAN HALF OF THE APPROXIMATELY 2,800 VARIABLE ANNUITYEXCHANGES EFFECTED BY THE FIRM'S REPRESENTATIVES WEREEXCLUDED FROM ITS SURVEILLANCE REPORT BECAUSE LINCOLN WASNOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITY THAT WASBEING EXCHANGED. AFTER FINRA RAISED THIS ISSUE WITH THE FIRM, ITCORRECTED ITS SURVEILLANCE REPORT TO INCLUDE ALL VARIABLEANNUITY EXCHANGES.

Resolution Date: 09/25/2018

Resolution:

Other Sanctions Ordered:

Sanction Details: THE FIRM WAS CENSURED AND FINED $35,000. FINES PAID IN FULL ONOCTOBER 9, 2018.

Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?

No

Sanctions Ordered: CensureMonetary/Fine $35,000.00

Acceptance, Waiver & Consent(AWC)





https://www.finra.org/rules-guidance/oversight-enforcement/finra-disciplinary-actions?search=2017052410201


Sanction Details: THE FIRM WAS CENSURED AND FINED $35,000. FINES PAID IN FULL ONOCTOBER 9, 2018.

iReporting Source: Firm

Initiated By: FINRA


Censure


FINE



Principal Product Type: Annuity(ies) - Variable


Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT DURING THERELEVANT PERIOD, AUGUST 1, 2015 THROUGH SEPTEMBER 1, 2017, ITFAILED TO IMPLEMENT REASONABLY DESIGNED SURVEILLANCEPROCEDURES TO MONITOR ITS REGISTERED REPRESENTATIVES' RATESOF EFFECTING VARIABLE ANNUITY EXCHANGES. THE FINDINGS STATEDTHAT THE FIRM ONLY TRACKED EXCHANGES WHERE IT WAS THE BROKEROF RECORD FOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED.IN SO DOING, THE FIRM DID NOT TRACK VARIABLE ANNUITY EXCHANGESWHERE THE FIRM WAS NOT THE BROKER OF RECORD FOR THE VARIABLEANNUITY THAT WAS BEING EXCHANGED. THE FINDINGS ALSO STATEDTHAT DURING THE RELEVANT PERIOD, MORE THAN HALF OF THEAPPROXIMATELY 2,800 VARIABLE ANNUITY EXCHANGES EFFECTED BYTHE FIRM'S REPRESENTATIVES WERE EXCLUDED FROM ITSSURVEILLANCE REPORT BECAUSE LINCOLN WAS NOT THE BROKER OFRECORD FOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED.AFTER FINRA RAISED THIS ISSUE WITH THE FIRM, IT CORRECTED ITSSURVEILLANCE REPORT TO INCLUDE ALL VARIABLE ANNUITYEXCHANGES.



Resolution:











Sanction Details: THE FIRM PAID THE $35,000.00 FINE ON 10/3/2018

Disclosure 2 of 6

i


Initiated By: FINRA




Principal Product Type: Mutual Fund(s)


Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT ITDISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLEORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASSA SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALESCHARGE. THE FINDINGS STATED THAT THESE ELIGIBLE CUSTOMERSWERE INSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALESCHARGE, OR CLASS B OR C SHARES WITH BACK-END SALES CHARGESAND HIGHER ONGOING FEES AND EXPENSES. THESE SALESDISADVANTAGED ELIGIBLE CUSTOMERS BY CAUSING THE CUSTOMERSTO PAY HIGHER FEES THAN THEY WERE ACTUALLY REQUIRED TO PAY.THE FINDINGS ALSO STATED THAT THE FIRM FAILED TO REASONABLYSUPERVISE THE APPLICATION OF SALES-CHARGE WAIVERS TO ELIGIBLEMUTUAL FUND SALES. THE FIRM RELIED ON ITS FINANCIAL ADVISORS TODETERMINE THE APPLICABILITY OF SALES-CHARGE WAIVERS, BUT FAILEDTO MAINTAIN ADEQUATE WRITTEN SUPERVISORY PROCEDURE (WSPS) TOASSIST FINANCIAL ADVISORS IN MAKING THIS DETERMINATION. INADDITION, THE FIRM FAILED TO ADEQUATELY NOTIFY AND TRAIN ITSFINANCIAL ADVISORS REGARDING THE AVAILABILITY OF MUTUAL FUNDSALES-CHARGE WAIVERS FOR ELIGIBLE CUSTOMERS. THE FIRM ALSOFAILED TO ADOPT ADEQUATE CONTROLS TO DETECT INSTANCES INWHICH THEY DID NOT PROVIDE SALES-CHARGE WAIVERS TO ELIGIBLECUSTOMERS IN CONNECTION WITH THEIR MUTUAL FUND PURCHASES. ASA RESULT OF THE FIRM'S FAILURE TO APPLY AVAILABLE SALES-CHARGEWAIVERS, THE FIRM ESTIMATES THAT ELIGIBLE CUSTOMERS WEREOVERCHARGED BY APPROXIMATELY $1,167,689 FOR MUTUAL FUNDPURCHASES MADE SINCE JANUARY 1, 2011.











Resolution:

Other Sanctions Ordered: INTEREST; REMEDIATION PLAN

Sanction Details: THE FIRM WAS CENSURED AND REQUIRED TO PROVIDE FINRA WITH AREMEDIATION PLAN TO REMEDIATE ELIGIBLE CUSTOMERS WHOQUALIFIED FOR, BUT DID NOT RECEIVE, THE APPLICABLE MUTUAL FUNDSALES-CHARGE WAIVER. AS PART OF THIS SETTLEMENT, THE FIRMAGREES TO PAY RESTITUTION TO ELIGIBLE CUSTOMERS, WHICH ISESTIMATED TO TOTAL $1,368,681 (THE AMOUNT ELIGIBLE CUSTOMERSWERE OVERCHARGED, INCLUSIVE OF INTEREST).

Regulator Statement IN RESOLVING THIS MATTER, FINRA HAS RECOGNIZED THEEXTRAORDINARY COOPERATION OF THE FIRM FOR: (1) INITIATING ANINVESTIGATION TO IDENTIFY WHETHER ELIGIBLE CUSTOMERS RECEIVEDSALES CHARGE WAIVERS DURING THE RELEVANT PERIOD, AND SELF-REPORTING ITS FINDINGS TO FINRA; (2) PROVIDING RESTITUTION TOELIGIBLE CUSTOMERS FOR A PERIOD OF SEVEN AND ONE-HALF YEARS;(3) PROMPTLY ESTABLISHING A PLAN OF REMEDIATION FOR ELIGIBLECUSTOMERS WHO DID NOT RECEIVE APPROPRIATE SALES CHARGEWAIVERS; (4) PROMPTLY TAKING ACTION AND REMEDIAL STEPS TOCORRECT THE VIOLATIVE CONDUCT, INCLUDING BY MAKINGPROGRAMMING CHANGES TO PRECLUDE ONGOING CUSTOMER HARM ASTHE FIRM INSTITUTED PERMANENT SYSTEMS UPGRADES; AND (5)EMPLOYING SUBSEQUENT CORRECTIVE MEASURES, PRIOR TODETECTION OR INTERVENTION BY A REGULATOR, TO REVISE ITSPROCEDURES TO AVOID RECURRENCE OF THE MISCONDUCT.


No

Sanctions Ordered: CensureDisgorgement/Restitution








Initiated By: FINRA


Censure






Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT ITDISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLEORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASSA SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALESCHARGE. THE FINDINGS STATED THAT THESE ELIGIBLE CUSTOMERSWERE INSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALESCHARGE, OR CLASS B OR C SHARES WITH BACK-END SALES CHARGESAND HIGHER ONGOING FEES AND EXPENSES. THESE SALESDISADVANTAGED ELIGIBLE CUSTOMERS BY CAUSING THE CUSTOMERSTO PAY HIGHER FEES THAN THEY WERE ACTUALLY REQUIRED TO PAY.THE FINDINGS ALSO STATED THAT THE FIRM FAILED TO REASONABLYSUPERVISE THE APPLICATION OF SALES-CHARGE WAIVERS TO ELIGIBLEMUTUAL FUND SALES. THE FIRM RELIED ON ITS FINANCIAL ADVISORS TODETERMINE THE APPLICABILITY OF SALES-CHARGE WAIVERS, BUT FAILEDTO MAINTAIN ADEQUATE WRITTEN SUPERVISORY PROCEDURES (WSPS)TO ASSIST FINANCIAL ADVISORS IN MAKING THIS DETERMINATION. INADDITION, THE FIRM FAILED TO ADEQUATELY NOTIFY AND TRAIN ITSFINANCIAL ADVISORS REGARDING THE AVAILABILITY OF MUTUAL FUNDSALES-CHARGE WAIVERS FOR ELIGIBLE CUSTOMERS. THE FIRM ALSOFAILED TO ADOPT ADEQUATE CONTROLS TO DETECT INSTANCES INWHICH THE FIRM DID NOT PROVIDE SALES-CHARGE WAIVERS TO THEELIGIBLE CUSTOMERS IN CONNECTION WITH THEIR MUTUAL FUNDPURCHASES. AS A RESULT OF THE FIRM'S FAILURE TO APPLY APPLICABLESALES-CHARGE WAIVERS, THE FIRM ESTIMATES THAT ELIGIBLECUSTOMERS WERE OVERCHARGED BY APPROXIMATELY $1,167,689 FORMUTUAL FUND PURCHASES MADE SINCE JANUARY 1, 2011.



Resolution:









Other Sanctions Ordered: INTEREST; REMEDIATION PLAN

Sanction Details: THE FIRM WAS CENSURED AND REQUIRED TO PROVIDE FINRA WITH AREMEDIATION PLAN TO REMEDIATE ELIGIBLE CUSTOMERS WHOQUALIFIED FOR, BUT DID NOT RECEIVE, THE APPLICABLE MUTUAL FUNDSALES-CHARGE WAIVER. AS PART OF THIS SETTLEMENT, THE FIRMAGREED TO PAY RESTITUTION TO ELIGIBLE CUSTOMERS, WHICH ISESTIMATED TO TOTAL $1,368,681 (THE AMOUNT ELIGIBLE CUSTOMERSWERE OVERCHARGED, INCLUSIVE OF INTEREST).

Firm Statement IN RESOLVING THIS MATTER, FINRA RECOGNIZED THE EXTRAORDINARYCOOPERATION OF THE FIRM FOR: (1) INITIATING AN INVESTIGATION TOIDENTIFY WHETHER ELIGIBLE CUSTOMERS RECEIVED SALES CHARGEWAIVERS DURING THE RELEVANT PERIOD, AND SELF-REPORTING ITSFINDINGS TO FINRA; (2) PROVIDING RESTITUTION TO ELIGIBLECUSTOMERS FOR A PERIOD OF SEVEN AND ONE-HALF YEARS; (3)PROMPTLY ESTABLISHING A PLAN OF REMEDIATION FOR ELIGIBLECUSTOMERS WHO DID NOT RECEIVE APPROPRIATE SALES CHARGEWAIVERS; (4) PROMPTLY TAKING ACTION AND REMEDIAL STEPS TOCORRECT THE VIOLATIVE CONDUCT, INCLUDING BY MAKINGPROGRAMMING CHANGES TO PRECLUDE ONGOING CUSTOMER HARM ASTHE FIRM INSTITUTED PERMANENT SYSTEM UPGRADES; AND (5)EMPLOYING SUBSEQUENT CORRECTIVE MEASURES, PRIOR TODETECTION OR INTERVENTION BY A REGULATOR, TO REVISE THE FIRM'SPROCEDURES TO AVOID RECURRENCE OF THE MISCONDUCT.


Disclosure 3 of 6

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Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.







Initiated By: FINRA


Other


N/A



Principal Product Type: No Product


WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.


Resolution:

Other Sanctions Ordered: UNDERTAKING

Sanction Details: THE FIRM WAS CENSURED, FINED $75,000, AND REQUIRED TO SUBMIT ACERTIFICATION, IN WRITING, TO FINRA WITHIN 90 DAYS OF THE ISSUANCEOF THIS AWC, CERTIFYING THAT THE FIRM HAS ADOPTED ANDIMPLEMENTED PROCEDURES REASONABLY DESIGNED TO ENHANCE THEENFORCEMENT OF ITS SUPERVISORY SYSTEM AND WSPS TO ENSURE ANEFFECTIVE REVIEW OF CONSOLIDATED REPORTS PRODUCED BYREGISTERED REPRESENTATIVES AND PROVIDED TO CUSTOMERS.FINE PAID IN FULL ON FEBRUARY 23, 2016.


No




Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.








Initiated By: FINRA


Other






WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.


Resolution:

Other Sanctions Ordered: UNDERTAKING

Sanction Details: THE FIRM WAS CENSURED, FINED $75,000, AND REQUIRED TO SUBMIT ACERTIFICATION, IN WRITING, TO FINRA WITHIN 90 DAYS OF THE ISSUANCEOF THIS AWC, CERTIFYING THAT THE FIRM HAS ADOPTED ANDIMPLEMENTED PROCEDURES REASONBLY DESIGNED TO ENHANCE THEENFORCEMENT OF ITS SUPERVISORY SYSTEM AND WSPS TO ENSURE ANEFFECTIVE REVIEW OF CONSOLIDATED REPORTS PRODUCED BYREGISTERED REPRESENTATIVES AND PROVIDED TO CUSTOMERS.



Disclosure 4 of 6

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Initiated By: FINRA







Allegations: NASD RULE 2110: RESPONDENT LINCOLN INVESTMENT PLANNING, INC.(LINCOLN) WAS REQUIRED TO PROVIDE REFUNDS EXPEDITIOUSLY INCASES WHERE IT WAS AWARE THAT CUSTOMERS HAD NOT RECEIVEDTHE APPROPRIATE BREAKPOINT DISCOUNT; HOWEVER, LINCOLN FAILEDTO PROVIDE TIMELY REFUNDS TO CUSTOMERS.



Resolution:


Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, LINCOLN CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $15,000.


No




Allegations: IN MARCH 2003, LINCOLN INVESTMENT WAS REQUIRED BY NASD TOCOMPLETE A MUTUAL FUND BREAKPOINT SELF-ASSESSMENT. IT WASALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 FOR THEUNTIMELY MAILING OF CUSTOMER REFUNDS ISSUED PURSUANT TO THEBREAKPOINT SELF-ASSESSMENT.








Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)


Censure


FINE IN THE AMOUNT OF $15,000





IN MARCH 2003, LINCOLN INVESTMENT WAS REQUIRED BY NASD TOCOMPLETE A MUTUAL FUND BREAKPOINT SELF-ASSESSMENT. IT WASALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 FOR THEUNTIMELY MAILING OF CUSTOMER REFUNDS ISSUED PURSUANT TO THEBREAKPOINT SELF-ASSESSMENT.


Resolution:


Sanction Details: FINE OF $15,000 LEVIED AGAINST THE FIRM AND PAID WITHIN 10 DAYS OFDATE OF AWC.

Firm Statement IT WAS DETERMINED THAT 398 INVESTORS WERE NOT PROVIDED THEIRBREAKPOINT REFUND WITHIN 90 DAYS OF RECEIPT OF THE INVESTOR'SCLAIM FORM. ALL INVESTORS WERE SENT THEIR REFUND WITHINTEREST CREDITED FROM THE DATE OF THE ORIGINAL TRANSACTION UPTO THE DATE THE REFUND WAS CREDITED TO THE INVESTOR. THE FIRMHAS VOLUNTARILY CONSENTED TO FINRA'S LETTER OF ACCEPTANCE,WAIVER AND CONSENT DATED MARCH 23, 2009.



Disclosure 5 of 6

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Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.


Docket/Case Number: C9A930025

Principal Product Type:

Allegations:













Resolution:


Sanction Details:

Regulator Statement ON JULY 27, 1993, DISTRICT NO. 9 NOTIFIED RESPONDENTS LINCOLNINVESTMENT PLANNING, INC., EDWARD S. FORST, SR., AND THOMASFORST THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO.C9A930025 WAS ACCEPTED; THEREFORE, THEY ARE CENSURED ANDFINED$7,500, JOINTLY AND SEVERALLY - (ARTICLE III, SECTIONS 1,21(a), 27 AND 39 OF THE RULES OF FAIR PRACTICE - RESPONDENTMEMBER, ACTING THROUGH RESPONDENT THOMAS FORST, CHANGEDTHEMANNER IN WHICH IT CONDUCTED ITS BUSINESS WITHOUT OBTAININGTHEPRIOR WRITTEN APPROVAL OF THE NASD IN THAT IT BECAME A MEMBEROF THE FUND SERVE DIVISION OF THE NATIONAL STOCK CLEARINGCORPORATION FOR THE PURPOSE OF SETTLING CERTAIN CUSTOMERS'MUTUAL FUND WIRE ORDER TRANSACTIONS AND BEGAN PROCESSINGMUTUALFUND TRANSACTIONS IN A MANNER THAT UTILIZED CUSTOMERS' FREECREDIT BALANCES, WHICH PRECLUDED CLAIMING AN EXEMPTION UNDERSEC RULE 15c3-3(k). AFTER EFFECTING THE CHANGE IN ITS BUSINESS,RESPONDENT MEMBER, ACTING THROUGH RESPONDENT FORST, FAILEDTOPREPARE RESERVE COMPUTATIONS PURSUANT TO THE RULE AND MAKENECESSARY DEPOSITS; EFFECTED TRANSACTIONS IN SECURITIES WHENITFAILED TO MAINTAIN ITS MINIMUM REQUIRED NET CAPITAL; PREPAREDINACCURATE NET CAPITAL COMPUTATIONS; FAILED TO COMPLY WITH SECRULE 17a-4 IN THAT AS OF THE TIME OF THE NASD EXAMINATION, ITDID NOT PRESERVE THE CUSTOMERS STATEMENTS PROVIDED TO IT BYTHEFIRM WHICH CLEARED ITS GENERAL SECURITIES TRANSACTIONS AND DIDNOT PRESERVE STATEMENTS PROVIDED TO IT BY VARIOUS MUTUALFUNDSAND INSURANCE COMPANIES; FILED AN INACCURATE FOCUS PART IREPORT; RESPONDENT MEMBER, ACTING THROUGH RESPONDENTEDWARDFORST, FAILED TO CONDUCT AN ANNUAL INSPECTION OF AN OFFICE OFSUPERVISORY JURISDICTION AND FAILED TO CONDUCT A REVIEW OFNUMEROUS BRANCH OFFICES; FAILED TO ESTABLISH, MAINTAIN ANDENFORCE WRITTEN SUPERVISORY PROCEDURES WHICH WEREREASONABLYDESIGNED TO ENSURE COMPLIANCE WITH RULES AND REGULATIONS;AND,FAILED TO COMPLY WITH MSRB RULE G-2 IN THAT IT EFFECTEDT*See FAQ #1*


Consent






ON JULY 27, 1993, DISTRICT NO. 9 NOTIFIED RESPONDENTS LINCOLNINVESTMENT PLANNING, INC., EDWARD S. FORST, SR., AND THOMASFORST THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO.C9A930025 WAS ACCEPTED; THEREFORE, THEY ARE CENSURED ANDFINED$7,500, JOINTLY AND SEVERALLY - (ARTICLE III, SECTIONS 1,21(a), 27 AND 39 OF THE RULES OF FAIR PRACTICE - RESPONDENTMEMBER, ACTING THROUGH RESPONDENT THOMAS FORST, CHANGEDTHEMANNER IN WHICH IT CONDUCTED ITS BUSINESS WITHOUT OBTAININGTHEPRIOR WRITTEN APPROVAL OF THE NASD IN THAT IT BECAME A MEMBEROF THE FUND SERVE DIVISION OF THE NATIONAL STOCK CLEARINGCORPORATION FOR THE PURPOSE OF SETTLING CERTAIN CUSTOMERS'MUTUAL FUND WIRE ORDER TRANSACTIONS AND BEGAN PROCESSINGMUTUALFUND TRANSACTIONS IN A MANNER THAT UTILIZED CUSTOMERS' FREECREDIT BALANCES, WHICH PRECLUDED CLAIMING AN EXEMPTION UNDERSEC RULE 15c3-3(k). AFTER EFFECTING THE CHANGE IN ITS BUSINESS,RESPONDENT MEMBER, ACTING THROUGH RESPONDENT FORST, FAILEDTOPREPARE RESERVE COMPUTATIONS PURSUANT TO THE RULE AND MAKENECESSARY DEPOSITS; EFFECTED TRANSACTIONS IN SECURITIES WHENITFAILED TO MAINTAIN ITS MINIMUM REQUIRED NET CAPITAL; PREPAREDINACCURATE NET CAPITAL COMPUTATIONS; FAILED TO COMPLY WITH SECRULE 17a-4 IN THAT AS OF THE TIME OF THE NASD EXAMINATION, ITDID NOT PRESERVE THE CUSTOMERS STATEMENTS PROVIDED TO IT BYTHEFIRM WHICH CLEARED ITS GENERAL SECURITIES TRANSACTIONS AND DIDNOT PRESERVE STATEMENTS PROVIDED TO IT BY VARIOUS MUTUALFUNDSAND INSURANCE COMPANIES; FILED AN INACCURATE FOCUS PART IREPORT; RESPONDENT MEMBER, ACTING THROUGH RESPONDENTEDWARDFORST, FAILED TO CONDUCT AN ANNUAL INSPECTION OF AN OFFICE OFSUPERVISORY JURISDICTION AND FAILED TO CONDUCT A REVIEW OFNUMEROUS BRANCH OFFICES; FAILED TO ESTABLISH, MAINTAIN ANDENFORCE WRITTEN SUPERVISORY PROCEDURES WHICH WEREREASONABLYDESIGNED TO ENSURE COMPLIANCE WITH RULES AND REGULATIONS;AND,FAILED TO COMPLY WITH MSRB RULE G-2 IN THAT IT EFFECTEDT*See FAQ #1*


Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.


Civil and Administrative Penalt(ies) /Fine(s)



Docket/Case Number: C9A930025-AWC



Allegations: VIOLATIONS GOVERNING RULES OF THE NASD, SEC AND MSRB:INACCURATE FINANCIAL REPORTING: FAILURE TO MAINTAIN MINIMUM NETCAPITAL AS OF PERIOD ENDING 5/31/92; CUSTOMER RESERVE COMP.ERRORS; SHORT-COMINGS IN ESTABLISHMENT, MAINTENANCE ANDENFORCEMENT OF SUPERV. PROCED. OF THE FIRM; FAILURE TO BEPROPERLY REGISTERED TO TRANSACT MUNI. SEC. BUS



Resolution:









Sanction Details: LINCOLN INVESTMENT PLANNING, INC., EDWARD S. FORST, SR. ANDTHOMAS FORST SANCTIONED, CENSURED AND FINED $7,500.00 JOINTLYAND SEVERALLY AS A RESULT OF THE ALLEGED FINDINGS BY THE NASDOF VIOLATIONS OF THE RULES GOVERNING A BROKER-DEALER.

Firm Statement BY SIGNING THE AWC, THE FIRM ACCEPTED THE ALLEGATIONS MADEAGAINST THE FIRM, WAIVED THEIR RIGHT TO A HEARING TO DEFENDTHEM, AND CONSENTED TO THE FINE AND CENSURE IMPOSED BY THENASD ON THE FIRM AND ITS PRINCIPALS. AT NO TIME WERE CUSTOMERFUNDS OR SECURITIES IN JEOPARDY OR UTILIZED FOR ANYTHING BUTTHE SOLE PURPOSE OF THE CUSTOMER AND HIS/HER INSTRUCTIONS.THESE ALLEGED VIOLATIONS WERE AS A RESULT OF AN INSPECTION OFTHE BROKER-DEALER CONDUCTED BY THE NASD IN JUNE AND JULY, 1992.


Disclosure 6 of 6

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Initiated By: IOWA




Docket/Case Number: C88-10-085

URL for Regulatory Action:



Allegations:



Resolution:


Sanction Details:

Sanctions Ordered: CensureMonetary/Fine $250.00

Consent






Sanction Details:

Regulator Statement 6/30/88-FORM U6 (8072-15888) DISCLOSES LINCOLN INVESTMENTPLANNING INC. (LIPI) CONSENTED TO AN ORDER OF CENSURE, AND $250FINE WITHOUT ADMITTING OR DENYING THE BUREAU'S ALLEGATIONS.THEBUREAU ALLEGED LIPI EFFECTED SALES OF RIGHTIME FUND, RIGHTIMEGOVERNMENT SECURITIES FUND, RIGHTIME BLUE CHIP FUND, WHILEUNLICENSED AS A BD AND THROUGH UNLICENSED AGENTS.DOCKET/CASENO. C88-10-085, DATED MAY 31, 1988.


Initiated By: SUPERINTENDENT OF SECURITIES OF THE STATE OF IOWA


Civil and Administrative Penalt(ies) /Fine(s)



Docket/Case Number: IOWA ORDER & CONSENT TO ORDER C88-10-85



Allegations: THE APPLICANT EFFECTED THREE (3) TRANSACTIONS IN MUTUAL FUNDSECURITIES ON BEHALF OF IOWANS BEFORE OBTAINING PROPERREGISTRATION AS SET FORTH IN SECTION 502 302 CODE OF IOWA 1987



Resolution:


Sanction Details: APPLICANT CENSURED AND FINED $250.00 PURSUANT TO SECTION 502304(1) CODE OF IOWA, 1987

Sanctions Ordered: CensureMonetary/Fine $250.00

Other






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