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	<title>Observer &#187; And By &#8216;Outstanding Experience&#8217; the Alleged-$11 Million Fraudster Meant a History of Compliance Violations</title>
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		<title>Observer &#187; And By &#8216;Outstanding Experience&#8217; the Alleged-$11 Million Fraudster Meant a History of Compliance Violations</title>
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		<title>And By &#8216;Outstanding Experience&#8217; the Alleged-$11 Million Fraudster Meant a History of Compliance Violations</title>

		<comments>http://observer.com/2012/05/and-by-outstanding-experience-the-alleged-11-million-fraudster-meant-a-history-of-compliance-violations/#comments</comments>
		<pubDate>Fri, 25 May 2012 13:22:54 -0400</pubDate>
					<link>http://observer.com/2012/05/and-by-outstanding-experience-the-alleged-11-million-fraudster-meant-a-history-of-compliance-violations/</link>
			<dc:creator>Patrick Clark</dc:creator>
				
		<guid isPermaLink="false">http://observer.com/?p=242388</guid>
		<description><![CDATA[<p><a href="http://observer.com/2012/05/and-by-outstanding-experience-the-alleged-11-million-fraudster-meant-a-history-of-compliance-violations/finra/" rel="attachment wp-att-242409"><img class="alignleft size-full wp-image-242409" title="FINRA" src="http://nyoobserver.files.wordpress.com/2012/05/finra.jpg" alt="" width="400" height="162" /></a>It's called the <a href="http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/">FINRA BrokerCheck</a>, people, and before you give some schmloe your money, it wouldn't hurt to use it. The Securities and Exchange Commission announced charges today against a New York-based fund manager named Jason J. Konior, who allegedly sold $11 million worth of limited partnerships in his Absolute Fund LP, then siphoned proceeds to pay redemptions from earlier investors. So, like, a pyramid scheme.</p>
<p><!--more--></p>
<p>And poor you if you invested. On the other hand, a quick search on the aforementioned BrokerCheck might have saved you a penny. For it turns out that Mr. Konior, who billed himself on his <a href="http://jasonkoniorfund.wordpress.com/about/">blog</a> as "an investment advisor in New York with many years of outstanding experience," amassed a laundry list of <a href="http://brokercheck.finra.org/Individual/IndividualSummary.aspx?SearchGroup=Individual&amp;FirmKey=-1&amp;BrokerKey=2818111">compliance violations, including</a>:</p>
<p>in 2008, a $10,000 fine levied under the Connecticut Uniform Securities Act for acting as an unregistered agent;</p>
<p>in 2007, a license suspension for recommending a client purchase more than $200,000 in a "volatile and speculative" stock, for which Mr. Konior did not have reasonable grounds to think his client was well-suited;</p>
<p>in 2006, a license suspension for failing to pay an arbitration award;</p>
<p>in 2005, a $3,000 settlement for executing a trade that was unsuitable to a client's knowledge or financial situation;</p>
<p>in 2003, a $9,999 settlement for unauthorized trading on behalf of a client;</p>
<p>in 2003, a $150,000 settlement for "excessive trading."</p>
<p>Not to mention a guilty plea for petit larceny and a conviction for assault in the third degree. Did we mention that he worked for 17 different securities firms between 1996 and 2005? All of which is indeed rather outstanding.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>http://brokercheck.finra.org/Individual/IndividualSummary.aspx?SearchGroup=Individual&amp;FirmKey=-1&amp;BrokerKey=2818111</p>
]]></description>
		<content:encoded><![CDATA[<p><a href="http://observer.com/2012/05/and-by-outstanding-experience-the-alleged-11-million-fraudster-meant-a-history-of-compliance-violations/finra/" rel="attachment wp-att-242409"><img class="alignleft size-full wp-image-242409" title="FINRA" src="http://nyoobserver.files.wordpress.com/2012/05/finra.jpg" alt="" width="400" height="162" /></a>It's called the <a href="http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/">FINRA BrokerCheck</a>, people, and before you give some schmloe your money, it wouldn't hurt to use it. The Securities and Exchange Commission announced charges today against a New York-based fund manager named Jason J. Konior, who allegedly sold $11 million worth of limited partnerships in his Absolute Fund LP, then siphoned proceeds to pay redemptions from earlier investors. So, like, a pyramid scheme.</p>
<p><!--more--></p>
<p>And poor you if you invested. On the other hand, a quick search on the aforementioned BrokerCheck might have saved you a penny. For it turns out that Mr. Konior, who billed himself on his <a href="http://jasonkoniorfund.wordpress.com/about/">blog</a> as "an investment advisor in New York with many years of outstanding experience," amassed a laundry list of <a href="http://brokercheck.finra.org/Individual/IndividualSummary.aspx?SearchGroup=Individual&amp;FirmKey=-1&amp;BrokerKey=2818111">compliance violations, including</a>:</p>
<p>in 2008, a $10,000 fine levied under the Connecticut Uniform Securities Act for acting as an unregistered agent;</p>
<p>in 2007, a license suspension for recommending a client purchase more than $200,000 in a "volatile and speculative" stock, for which Mr. Konior did not have reasonable grounds to think his client was well-suited;</p>
<p>in 2006, a license suspension for failing to pay an arbitration award;</p>
<p>in 2005, a $3,000 settlement for executing a trade that was unsuitable to a client's knowledge or financial situation;</p>
<p>in 2003, a $9,999 settlement for unauthorized trading on behalf of a client;</p>
<p>in 2003, a $150,000 settlement for "excessive trading."</p>
<p>Not to mention a guilty plea for petit larceny and a conviction for assault in the third degree. Did we mention that he worked for 17 different securities firms between 1996 and 2005? All of which is indeed rather outstanding.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>http://brokercheck.finra.org/Individual/IndividualSummary.aspx?SearchGroup=Individual&amp;FirmKey=-1&amp;BrokerKey=2818111</p>
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