The Financial Industry Regulatory Authority (FINRA) has fined and suspended Joseph Warner Rozof, a former representative of Harley Capital LLC, for alleged violations of FINRA rules.

Rozof first registered with FINRA in 2007. Between March 2022 and July 2024, Rozof was registered as a General Securities Representative through an association with Harley Capital LLC.

From April 2022 through May 2024, Rozof placed over 250 discretionary trades in the accounts of two Harley Capital customers. Although Rozof discussed his trading strategy with the customers generally, he did not speak with the customers about the specific trades on the dates of the transactions.

Rozof did not have written authorization from the customers to exercise discretion over their accounts. In addition, the firm had not accepted any of the accounts for discretionary trading.

Therefore, Rozof violated FINRA Rules 3260(b) and 2010.

From March 2022 through June 2024, Rozof used a personal cell phone to exchange text messages to communicate with 27 customers of Harley Capital (including the two customers in whose accounts he placed discretionary trades and two family members) about securities-related business.

For example, Rozof recommended the purchase and sale of securities and discussed fund transfers in customer accounts via text messages.

He also used his personal cell phone to respond to and otherwise communicate with other firm employees regarding securities-related business.

At all relevant times, Harley Capital’s written supervisory procedures provided that such business-related text messaging be made only through a firm-approved system that captured and stored those messages, which the firm was then able to supervise. Rozof did not use such system, nor did he otherwise provide the text messages to the firm for review or retention.

As a result, Harley Capital did not capture or preserve these text messages as required by Section 17(a) of the Exchange Act and Rule 17a-4(b)(4).

By causing Harley Capital to maintain incomplete books and records, Rozof violated FINRA Rules 4511 and 2010.

Rozof consented to the imposition of the following sanctions:

• a 45-calendar day suspension from associating with any FINRA member in all capacities; and
• a $10,000 fine.