James Arthur Kujawski of Annapolis Maryland a stockbroker formerly employed by UBS Financial Services Inc. has been fined $10,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in private securities transactions and outside business activities. Letter of Acceptance Waiver and Consent No. 2016049307701 (Aug. 23, 2018).
According to the AWC, from April of 2012 to February 2014, during the time that Kujawski was associated with UBS, Kujawski sold away from the firm. In April of 2012, the owner of LTU sought Kujawski’s help in facilitating the repurchase of a VT option; Kujawski’s compensation was slated to be a percentage of the price for which the VT option would be sold. The AWC stated that Kujawski acquiesced to the arrangement; however, Kujawski had not notified UBS or obtained the firm’s authorization according to the firm’s requirements. It was not until several years later that UBS was made aware of Kujawski’s activities.
The AWC stated that Kujawski’s involvement in the VT option repurchase was evidenced, inter alia, by: Kujawski getting a commercial lender involved; attending the parties’ meetings; conducting reviews of contract provisions; and being compensated $73,444.90 for his involvement. FINRA found that Kujawski participated in the sale of a call option on common stock, which constituted a security. FINRA found Kujawski’s private securities transaction was violative of FINRA Rule 2010 and NASD Rule 3040.
In addition, FINRA stated that between November 9, 2013 and September 14, 2014, Kujawski engaged in unapproved outside business activities. Particularly, he purchased and sold a business without having notified the firm. The firm was apparently never made aware of Kujawski’s activities, which included filing the articles of organization for the business, becoming registered agent, and effecting the sale of the business to his business partner. FINRA found that the unapproved outside business activities were violative of FINRA Rules 2010 and 3270.
FINRA Public Disclosure confirms that Kujawski has been identified in seven customer initiated investment related disputes containing accusations of his misconduct while employed with Prudential Securities, Inc. and Morgan Stanley. Specifically, Kujawski was named in a customer initiated investment related arbitration claim where the customer was awarded $10,000.00 in damages based upon Kujawski having been found liable on the customer’s claims of excessive, unauthorized and unsuitable trading in the customer’s account; and omissions of information concerning investments. FINRA Arbitration No. 99-05273 (May 14, 2001).
Moreover, a customer initiated investment related dispute concerning Kujawski’s conduct was settled for $40,000.00 in damages founded on allegations that Kujawski made unsuitable purchases of stock in the customer’s account. Thereafter, a customer initiated investment related arbitration claim regarding Kujawski’s activities was resolved for $12,500.00 in damages based upon accusations that misrepresentations had been made by the financial advisor concerning investments, and the customer was placed into annuities that were not appropriate for the customer. FINRA Arbitration No. 09-03464 (Oct. 24, 2011).
On September 7, 2010, another customer initiated investment related complaint concerning Kujawski’s conduct was settled for $14,000.00 in damages supported by allegations that unsuitable mutual fund investment transactions were placed in the customer’s account. Thereafter, a customer filed an investment related civil action involving Kujawski’s conduct in which the customer requested $73,444.90 in damages founded on accusations that Kujawski made false statements to the customer concerning over-the-counter equities options by claiming that he was acting on the firm’s behalf with respect to the customer’s outside transactions. Civil Action No. C-20-CV-15-001624 (July 7, 2015).
Kujawski was discharged by UBS Financial Services on February 20, 2018 based upon allegations that Kujawski failed to be forthcoming concerning his outside business activities and investments. Since March 26, 2018, Kujawski has been associated with Ameriprise Financial Services, Inc.
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