Investor Protection Services

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SAMPLE WINNOW PLUS™ QUARTERLY UPDATE

As a Winnow Plus customer, you receive more frequent searches of the IW database and immediate notification of search results. IW reported the following facts to you by telephone and email on the dates indicated at the bottom of the report.

Broker Name: Joseph V. Puschie

This Broker Currently Works For: Typical Brokerage, Inc.

Since the last report, have we found out anything else about him?

Mr. Puschie has moved from Ocala, Florida to Boca Raton, Florida. Property records show that he sold his home for $350,000 and bought his new home for $750,000.

Since the last report he has started a new business called, Financial Experts, LLC, and registered as an Investment Adviser (see glossary) with the SEC.

(1) Yes. Mr. Puschie left Average Brokers, Inc. in April 2007, and moved to Typical Brokerage, Inc. NASD records indicated that he was terminated by Average. By the time we send you your next Winnow Plus report, more details of the circumstances of the termination should be available.



(2) Yes. Since the last report, the two arbitration actions identified in earlier Winnow Plus reports have been resolved. Each alleged that Mr. Puschie engaged in churning, unauthorized trading, and unsuitable trading (see glossary). Average settled one of those actions for $150,000 (3) and the other for $300,000 (4).

On July 1, 2007 the Certified Financial Planning Board of Standards concluded a disciplinary action against Mr. Puschie (5). The CFP Board suspended Mr. Puschie for six months, thereby denying him the right to use the CFP designation for that period.

In light of these developments, Investor’s Watchdog recommends that the customer review her account carefully for signs of unauthorized trading and/or churning and bring any problems to the attention of the Typical compliance department whose address is 123 Trust Avenue, Boston Massachusetts, 12345. If the customer needs legal advice, IW can recommend an attorney experienced in such matters. Call IW toll free at 866-423-WDOG (9364) for a referral.

Since the last report, has anything changed about Mr. Puschie’s firm?

Mr. Puschie’s new firm, Typical, is an independent broker-dealer headquartered in Boston. Typical has been sanctioned numerous times in the past ten years, and twice since the last Winnow Plus report.

In June 2007, the U.S. Securities and Exchange Commission issued a cease-and-desist order against Typical for failure to give customers commission discounts to which they were entitled. The SEC also fined Typical $3 million.

In July 2007, the NASD censured and fined Typical $750,000 for failing to timely file 510 amendments to Forms U4 and U5 which, if timely filed, would have put the public on notice of 510 additional regulatory actions or criminal actions by Typical representatives.

(6) In light of the forgoing, IW has lowered Mr. Puschie’s IW score to 42 on a scale of 40 to 80. This is a five point drop from the initial Broker Safety Score of 47. A score of 40 indicates a broker that, in IW’s opinion, the client should avoid altogether. A score of 80 indicates a broker who has been tested by bear markets and yet has no customer complaints, no disciplinary history, no negative information in the IW database, and no areas that raise concern for a former SEC Enforcement Branch Chief.


(1) Facts reported to the customer by telephone and email on April 10, 2007.
(2) Facts reported to the customer by telephone and email on May 2, 2007.
(3) Facts reported to the customer by telephone and email on June 6, 2007.
(4) Facts reported to the customer by telephone and email on June 29, 2007.
(5) Facts reported to the customer by telephone and email on July 1, 2007.

(6) IW rates brokers on a 40 to 80 scale with a higher score reflecting IW’s opinion, based on historical information, that the investor’s assets are safe from intentional or reckless misconduct by the broker or his firm. IW expresses no opinion on the value of the customer’s investments or on the broker’s investment selection ability. A single new fact can radically change the IW score and indicate a need for immediate action. For timelier notification of red flags, please consider upgrading to IW’s Constant Patrol™ subscription.