quest capital strategies, inc.quest capital strategies, inc. crd# 16783 sec# 8-34532 main office...

BrokerCheck Report

QUEST CAPITAL STRATEGIES, INC.

Section Title

Report Summary

Registration and Withdrawal

Firm History

CRD# 16783

1

2

6

Firm Profile 3 - 5

Page(s)

Firm Operations 7 - 12

Disclosure Events 13

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CRD# 16783

SEC# 8-34532

Main Office Location

25526 LONE PINE CIRSTE 500WLAGUNA HILLS, CA 92653

Mailing Address

28241 CROWN VALLEY PKWYSUITE F-438LAGUNA NIGUEL, CA 92677

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

9495100141

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 5

Arbitration 6

Firm Profile

This firm is classified as a corporation.

This firm was formed in California on 03/18/1983.

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

This brokerage firm is no longer registered withFINRA or a national securities exchange.

www.finra.org/brokercheck User Guidance

1©2020 FINRA. All rights reserved. Report about QUEST CAPITAL STRATEGIES, INC.

https://adviserinfo.sec.gov/firm/summary/16783


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This section provides information relating to the date the brokerage firm ceased doing business and the firm's financialobligations to customers or other brokerage firms.

Registration Withdrawal Information

12/31/2019

No

This firm terminated orwithdrew registration on:

Does this brokerage firm oweany money or securities toany customer or brokeragefirm?






This firm is classified as a corporation.

This firm was formed in California on 03/18/1983.

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.


SEC#

16783

8-34532

Main Office Location

Mailing Address

Business Telephone Number

Doing business as QUEST CAPITAL STRATEGIES, INC.

9495100141

25526 LONE PINE CIRSTE 500WLAGUNA HILLS, CA 92653

28241 CROWN VALLEY PKWYSUITE F-438LAGUNA NIGUEL, CA 92677

Other Names of this Firm

Name Where is it used

QUEST CAPITAL CA






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?

TSAI, CAROLYNE

CFO, FIN OP

75% or more

No

Individual

11/2002

Yes

2272768

Is this a domestic or foreignentity or an individual?

Legal Name & CRD# (if any):

Position

Percentage of Ownership

Is this a public reportingcompany?

Position Start Date

Does this owner direct themanagement or policies ofthe firm?

TSAI, CAROLYNE

CEO, CCO, OFFICE MANAGER

75% or more

No

Individual

01/2018

Yes

2272768

Is this a domestic or foreignentity or an individual?

Legal Name & CRD# (if any):






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

Indirect Owners

Firm Profile

No information reported.






Firm History

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

No information reported.






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.

The firm's registration was from 05/13/1986 to 02/25/2020.

This firm is no longer registered.






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.

This firm currently conducts 7 types of businesses.

Types of Business

Broker or dealer retailing corporate equity securities over-the-counter

Broker or dealer selling corporate debt securities

Mutual fund retailer

Broker or dealer selling variable life insurance or annuities

Put and call broker or dealer or option writer

Investment advisory services

Non-exchange member arranging for transactions in listed securities by exchange member






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: RBC CAPITAL MARKETS, LLC

Business Address: ONE LIBERTY PLAZA165 BROADWAYNEW YORK, NY 10006

CRD #: 31194

Effective Date: 10/03/2012

Description: FULLY DISCLOSED CLEARING ARRANGEMENT

RBC CAPITAL MARKETS CORPORATION REPLACES APEX CLEARINGCORPORATION AS OUR CLEARING FIRM






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.



CRD #: 31194






CRD #: 31194






CRD #: 31194









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 not, 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.

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 5 0

Arbitration N/A 6 N/A






Disclosure Event Details

What you should know about reported disclosure events:

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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 5

Reporting Source: Regulator

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOESTABLISH ADEQUATE SUPERVISORY SYSTEMS AND WRITTENSUPERVISORY PROCEDURES (WSPS). THE FINDINGS STATED THAT THEFIRM FAILED TO ESTABLISH ADEQUATE SUPERVISORY SYSTEMS ANDWSPS TO SUPERVISE CERTAIN MUTUAL FUND SALES PRACTICES ANDTRANSACTIONS. WHILE THE FIRM STATED THAT ITS COMPLIANCEOFFICERS CONDUCTED A SUITABILITY REVIEW CONCERNING SHARECLASS, LETTER OF INTENT, AND BREAKPOINTS, THE FIRM FAILED TOPROVIDE DOCUMENTATION THAT ANY SUCH SUITABILITY REVIEW BY THEFIRM'S COMPLIANCE OFFICERS OCCURRED. FOR CERTAIN MUTUAL FUNDTRANSACTIONS, THE FIRM COULD NOT PERFORM AN ADEQUATESUITABILITY REVIEW. THE FINDINGS ALSO STATED THAT SPECIFICALLY, INCERTAIN INSTANCES, THE FIRM'S REGISTERED REPRESENTATIVES FAILEDTO COMPLETE AN INTERNAL FIRM FORM TITLED "MUTUAL FUNDPROSPECTUS RECEIPT RISK AND BENEFIT DISCLOSURE, ANDACKNOWLEDGMENT" (MFPR FORM) FOR NEW CUSTOMERS WHO HELDMUTUAL FUNDS AS INVESTMENTS, EVEN THOUGH THOSE CUSTOMERSENGAGED IN FURTHER MUTUAL FUND TRANSACTIONS AT THE FIRM. AS ARESULT, THE FIRM NEVER DOCUMENTED ANY REVIEW CONCERNING THESUITABILITY OF THE MUTUAL FUND TRANSACTIONS CONCERNING THOSECUSTOMERS. IN ADDITION, THE FIRM COULD NOT PERFORM A SUITABILITYREVIEW WITH RESPECT TO CERTAIN CUSTOMERS' MUTUAL FUNDTRANSACTIONS BECAUSE THE REGISTERED REPRESENTATIVES WEREUSING AN OUTDATED MFPR FORM THAT DID NOT REQUEST THECUSTOMER'S TIME HORIZON. WITHOUT A STATED INVESTMENT TIMEHORIZON, THE FIRM COULD NOT CONDUCT A SUITABILITY REVIEW OFTHOSE TRANSACTIONS. THE FINDINGS ALSO INCLUDED THAT THE FIRMFAILED TO HAVE WSPS IN PLACE AS TO HOW THE FIRM WOULD MONITORAND REVIEW ACCOUNTS TO PREVENT CHARGING A CUSTOMER BOTH ANINVESTMENT ADVISORY MANAGEMENT FEE AND A BROKER-DEALERTRANSACTION-BASED COMMISSION, AND HOW THE FIRM WOULD ENSURETHAT CUSTOMER INFORMATION IS KEPT CONFIDENTIAL, SAFEGUARDED,AND ENCRYPTED PRIOR TO SENDING ELECTRONICALLY. FINRA FOUNDTHAT THE FIRM'S ANNUAL TESTING PERFORMED BY AN INDEPENDENTTHIRD-PARTY FIRM WAS NOT ADEQUATE AND DID NOT IDENTIFY CERTAINDEFICIENCIES.

Current Status: Final






Initiated By: FINRA

Principal Sanction(s)/ReliefSought:

Date Initiated: 12/16/2015

Docket/Case Number: 2014038995701

Principal Product Type: No Product

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 TOESTABLISH ADEQUATE SUPERVISORY SYSTEMS AND WRITTENSUPERVISORY PROCEDURES (WSPS). THE FINDINGS STATED THAT THEFIRM FAILED TO ESTABLISH ADEQUATE SUPERVISORY SYSTEMS ANDWSPS TO SUPERVISE CERTAIN MUTUAL FUND SALES PRACTICES ANDTRANSACTIONS. WHILE THE FIRM STATED THAT ITS COMPLIANCEOFFICERS CONDUCTED A SUITABILITY REVIEW CONCERNING SHARECLASS, LETTER OF INTENT, AND BREAKPOINTS, THE FIRM FAILED TOPROVIDE DOCUMENTATION THAT ANY SUCH SUITABILITY REVIEW BY THEFIRM'S COMPLIANCE OFFICERS OCCURRED. FOR CERTAIN MUTUAL FUNDTRANSACTIONS, THE FIRM COULD NOT PERFORM AN ADEQUATESUITABILITY REVIEW. THE FINDINGS ALSO STATED THAT SPECIFICALLY, INCERTAIN INSTANCES, THE FIRM'S REGISTERED REPRESENTATIVES FAILEDTO COMPLETE AN INTERNAL FIRM FORM TITLED "MUTUAL FUNDPROSPECTUS RECEIPT RISK AND BENEFIT DISCLOSURE, ANDACKNOWLEDGMENT" (MFPR FORM) FOR NEW CUSTOMERS WHO HELDMUTUAL FUNDS AS INVESTMENTS, EVEN THOUGH THOSE CUSTOMERSENGAGED IN FURTHER MUTUAL FUND TRANSACTIONS AT THE FIRM. AS ARESULT, THE FIRM NEVER DOCUMENTED ANY REVIEW CONCERNING THESUITABILITY OF THE MUTUAL FUND TRANSACTIONS CONCERNING THOSECUSTOMERS. IN ADDITION, THE FIRM COULD NOT PERFORM A SUITABILITYREVIEW WITH RESPECT TO CERTAIN CUSTOMERS' MUTUAL FUNDTRANSACTIONS BECAUSE THE REGISTERED REPRESENTATIVES WEREUSING AN OUTDATED MFPR FORM THAT DID NOT REQUEST THECUSTOMER'S TIME HORIZON. WITHOUT A STATED INVESTMENT TIMEHORIZON, THE FIRM COULD NOT CONDUCT A SUITABILITY REVIEW OFTHOSE TRANSACTIONS. THE FINDINGS ALSO INCLUDED THAT THE FIRMFAILED TO HAVE WSPS IN PLACE AS TO HOW THE FIRM WOULD MONITORAND REVIEW ACCOUNTS TO PREVENT CHARGING A CUSTOMER BOTH ANINVESTMENT ADVISORY MANAGEMENT FEE AND A BROKER-DEALERTRANSACTION-BASED COMMISSION, AND HOW THE FIRM WOULD ENSURETHAT CUSTOMER INFORMATION IS KEPT CONFIDENTIAL, SAFEGUARDED,AND ENCRYPTED PRIOR TO SENDING ELECTRONICALLY. FINRA FOUNDTHAT THE FIRM'S ANNUAL TESTING PERFORMED BY AN INDEPENDENTTHIRD-PARTY FIRM WAS NOT ADEQUATE AND DID NOT IDENTIFY CERTAINDEFICIENCIES.





https://www.finra.org/rules-guidance/oversight-enforcement/finra-disciplinary-actions?search=2014038995701



Other Sanction(s)/ReliefSought:

Resolution Date: 12/16/2015

Resolution:

Other Sanctions Ordered:

Sanction Details: THE FIRM WAS CENSURED AND FINED $25,000.FINE PAID IN FULL ON DECEMBER 29, 2015.

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

No

Sanctions Ordered: CensureMonetary/Fine $25,000.00

Acceptance, Waiver & Consent(AWC)

iReporting Source: Firm

Initiated By: FINRA




Docket/Case Number: CASE # 2014038995701

Principal Product Type: Other


Allegations: THE FIRM FAILED TO ESTABLISH ADEQUATE WRITTEN SUPERVISORYPROCEDURES (WSPS) RELATING TO SUPERVISION OF: 1) CERTAINMUTUAL FUND SALES PRACTICES 2)ENSURING CUSTOMER ACCOUNTSWERE NOT CHARGED BOTH ADVISORY AND TRANSACTION FEES AND 3)COMPLIANCE WITH REG S-P REGARDING THE ENCRYPTION OFCUSTOMER INFORMATION SENT ELECTRONICALLY.








Resolution:

Other Sanctions Ordered: ALTHOUGH THE FIRM NEITHER ADMITS OR DENIES THE FINDINGS, THEFIRM HAS UPDATED ITS WRITTEN SUPERVISORY PROCEDURES (WSPS)TO MORE ACCURATELY REFLECT THE ONGOING SUPERVISION OF THEAREAS SPECIFICALLY MENTIONED IN THE FINDINGS.

Sanction Details: ALTHOUGH THE FIRM NEITHER ADMITS OR DENIES THE FINDINGS, THEFIRM HAS UPDATED ITS WRITTEN SUPERVISORY PROCEDURES (WSPS)TO MORE ACCURATELY REFLECT THE ONGOING SUPERVISION OF THEAREAS SPECIFICALLY MENTIONED IN THE FINDINGS. THE FIRM AGREEDTO A CENSURE AND FINE OF $25,000



Disclosure 2 of 5

i


Initiated By: NEVADA


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



Docket/Case Number: CI13-245

URL for Regulatory Action:



Allegations: QUEST CAPITAL STRATEGIES INC., OPERATED FOUR BRANCH OFFICES INTHE STATE OF NEVADA, WITHOUT LICENSING THE SAME AS REQUIRED BYNRS 90.360 AND NAC 90.392.



Resolution:


No

Order







Sanction Details: PURSUANT TO AN ADMINSTRATIVE CONSENT ORDER, QUEST CAPITALSTRATEGIES, INC., AGREED TO PAY A $3,000.00 CIVIL PENALTY FOROPERATING THE FOUR UNLICENSED BRANCHES AND $781.30 FOR ITS FEEFOR THE INSPECTION OF RECORDS PURSUANT TO NRS 90.410.

Regulator Statement ALL FINES AND FEES ARE PAID IN FULL.


No

Sanctions Ordered: Monetary/Fine $3,000.00


Initiated By: STATE OF NEVADA


Other


ADMINISTRATIVE CONSENT ORDER (ACO)


Docket/Case Number: CI13-245-BRM



Allegations: QUEST CAPITAL STRATEGIES DID NOT PROPERLY OBTAIN AND MAINTAINSTATE REQUIRED BRANCH OFFICE LICENSING FOR 4 DIFFERENTLOCATIONS WITHIN THE STATE OF NEVADA.



Resolution:


Sanction Details: QUEST CAPITAL PAID THE $3000.00 FINE ON 1/26/2015.

Firm Statement ON DECEMBER 11, 2012 QUEST WAS DIRECTED TO CLOSE 4 STATE OFNEVADA BRANCH OFFICES THAT HAD BEEN INCORRECTLY REGISTERED INTHE WEB CRD SYSTEM. ON JANUARY 13, 2013, QUEST RE-FILED WITHTHE STATE OF NEVADA THE BRANCH APPLICATIONS VIA WEB CRD FORTHE 4 INDEPENDENT REPRESENTATIVES WHO RESIDED IN NEVADA.QUEST ASSUMED THE REGISTRATION OF THE 4 BRANCH OFFICES WASSUCCESSFUL. QUEST ALSO ASSUMED THAT STATE OF NEVADA WOULDNOTIFY US IF THERE WERE SOMETHING MISSING ON THE APPLICATIONBUT IT WAS NOT THE CASE. QUEST FINALLY RECEIVED APPROVAL FORTHE 4 BRANCHES IN APRIL 2013. WITHOUT ADMITTING OR DENYING THEFINDINGS, QUEST AGREED TO THE ADMINISTRATIVE CONSENT ORDERISSUED BY THE STATE OF NEVADA.


Consent






Firm Statement ON DECEMBER 11, 2012 QUEST WAS DIRECTED TO CLOSE 4 STATE OFNEVADA BRANCH OFFICES THAT HAD BEEN INCORRECTLY REGISTERED INTHE WEB CRD SYSTEM. ON JANUARY 13, 2013, QUEST RE-FILED WITHTHE STATE OF NEVADA THE BRANCH APPLICATIONS VIA WEB CRD FORTHE 4 INDEPENDENT REPRESENTATIVES WHO RESIDED IN NEVADA.QUEST ASSUMED THE REGISTRATION OF THE 4 BRANCH OFFICES WASSUCCESSFUL. QUEST ALSO ASSUMED THAT STATE OF NEVADA WOULDNOTIFY US IF THERE WERE SOMETHING MISSING ON THE APPLICATIONBUT IT WAS NOT THE CASE. QUEST FINALLY RECEIVED APPROVAL FORTHE 4 BRANCHES IN APRIL 2013. WITHOUT ADMITTING OR DENYING THEFINDINGS, QUEST AGREED TO THE ADMINISTRATIVE CONSENT ORDERISSUED BY THE STATE OF NEVADA.

Disclosure 3 of 5

i


Initiated By: NASD




Docket/Case Number: C02030058



Allegations: NASD RULES 1031(A), 1120, 2110, 3010(A) AND 3010(B)(1) - RESPONDENTMEMBER MAINTAINED NASD REGISTRATIONS OF REPRESENTATIVES WHOWERE NOT ACTIVE IN FIRM'S INVESTMENT BANKING OR SECURITIESBUSINESS OR WERE NOT FUNCTIONING AS REPRESENTATIVES; ALLOWEDREGISTERED INDIVIDUALS TO PERFORM DUTIES REQUIRINGREGISTRATION WHILE THE STATUS OF THEIR REGISTRATIONS WASINACTIVE BECAUSE THEY FAILED TO COMPLETE THE REGULATORYELEMENT OF NASD'S CONTINUING EDUCATION RULE; ACTING THROUGHITS FORMER COMPLIANCE OFFICER, FAILED TO ESTABLISH AND MAINTAINA SYSTEM TO SUPERVISE THE ACTIVITIES OF REGISTEREDREPRESENTATIVES REASONABLY DESIGNED TO ACHIEVE COMPLIANCEWITH NASD RULES.



Resolution: Acceptance, Waiver & Consent(AWC)








Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, QUEST CAPITALSTRATEGIES INC., CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS, THEREFORE THE FIRM IS CENSURED ANDFINED $41,000.



Initiated By: NASD




Docket/Case Number: C02030058



Allegations: NASD RULES 2110, 3010(A), 3010(B)(1)- FROM ABOUT OCTOBER 1999THROUGH AT LEAST FEBRUARY 2002, QCS, ACTING THROUGH ITSFORMER COMPLIANCE OFFICER, FAILED TO ESTABLISH AND MAINTAIN ASYSTEM TO SUPERVISE THE ACTIVITIES OF EACH REGISTEREDREPRESENTATIVE REASONABLY DESIGNED TO ACHIEVE COMPLIANCEWITH NASD RULES, WITH RESPECT TO 1) PREVENTING OF "PARKING" OFREGISTERED REPRESENTATIVES' LICENSES IN CONTRAVENTION OFMEMBERSHIP AND REGISTRATION RULE 1031(A), AND 2) COMPLIANCEWITH REGULATORY ELEMENT OF NASD'S CONTINUING EDUCATION RULE1120.



Resolution:









Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OR FINDINGS, QCS,ACCEPTS AND CONSENTS TO THE DESCRIBED SANCTIONS OF CENSUREAND MONETARY/FINE 41,000.

Disclosure 4 of 5

i


Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION




Docket/Case Number: REL. NOS. 34-36909;IA-1555



Allegations: REL. NOS. 34-36909;IA-1555 - ORDER INSTITUTING PUBLICADMINISTRATIVE PROCEEDINGS AND NOTICE OF HEARING PURSUANT TOSECTIONS 15(B) AND 19(H) OF THE SECURITIES EXCHANGE ACT OF 1934AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940; THECOMMISSION ANNOUNCED THAT ON FEBRUARY 29 IT INSTITUTED PUBLICADMINISTRATIVE PROCEEDINGS AGAINST QUEST CAPITALSTRATEGIES,INC. (QUEST), A REGISTERED BROKER-DEALER, QUEST'SPRESIDENT. THE ORDER ALLEGES THAT THEY FAILED REASONABLY TOSUPERVISE A FORMER QUEST REGISTEREDREPRESENTATIVE WITH A VIEW TO PREVENTING HIS VIOLATIONS OF THEFEDERAL SECURITIES LAWS. FROM DECEMBER 1991 TO AUGUST 1993, HEDEFRAUDED APROXIMATELY THIRTY-FIVE INVESTORS OF APPROXIMATELY$450,000 BY MEANS OF A FIXED INCOME LOAN AGREEMENT" (NOTE),PURSUANT TO WHICH HE GUARANTEED PRINCIPAL AND INTEREST ONINVESTMENTS THROUGH HIS INVESTMENT BUSINESS. AMONG OTHERTHINGS, HEMISREPRESENTED THE SAFETY OF THE NOTES AND THE USE OFINVESTOR'S MONIES AND IN FACT, USED INVESTORS' MONEY TOINVEST IN FUTURES AND FUTURES OPTIONS AND FOR PERSONAL ANDBUSINESS EXPENSES.



Resolution: Order







Other Sanctions Ordered: UNDERTAKING

Sanction Details: SEC ADMIN PROCEEDING FILE NO. 3-8966, RELS 34-44935, IA REL NO. 1990,DATED OCTOBER 15, 2001 - IT IS ORDERED THAT QUEST SHALL NOTMAINTAIN ANY BRANCH OFFICE THAT IS NOT SUPERVISED BY AN ON-SITEREGISTERED PRINCIPAL AND SUBJECTED TO SEMI-ANNUAL SURPRISEINSPECTIONS, AND SHALL NOT EMPLOY OR CONTRACT WITH ANYREGISTERED REPRESENTATIVE WHO IS NOT IN ITS MAIN OFFICE OR ABRANCH OFFICE UNLESS THAT REPRESENTATIVE IS SUBJECTED TO ANANNUAL INSPECTION, ON A SURPRISE BASIS IF POSSIBLE, AND IT ISORDERED THAT, WITHIN 30 DAYS OF THE ENTRY OF THIS ORDER, QUESTSHALL PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $50,000.

Regulator Statement SEC NEWS DIGEST NO. 96-38, DATED MARCH 1, 1996,62 SEC DOCKET 2089, DATED SEPTEMBER 24, 1996 DISCLOSES:PREHEARING ORDER GRANTING IN PART RESPONDENTS'REQUEST TOISSUE SUBPOENAS DUCES TECUM, AND MAKING EVIDENTIARYRULINGS WAS ISSUED AUGUST 12, 1996.INITIAL DECISION NO. 141, FILE NO. 3-8966,DATED APRIL 12, 1999 - ANINITIAL DECISION WAS ISSUED ON APRIL 12, 1999 THAT FOUND THATALTHOUGH THE INDIVIDUAL WAS SUBJECT TO THE SUPERVISION OFQUEST AND ITS PRESIDENT WHEN HE VIOLATED THE FEDERALSECURITIES LAWS, QUEST AND ITS PRESIDENT REASONABLYSUPERVISED HIM WITH A VIEW TO PREVENTING HIS SECURITIES LAWSVIOLATIONS. PROCEEDINGS AGAINST QUEST ARE DISMISSED. SECDIVISION OF ENFORCEMENT APPEALED THE ALJ DECISION ON MAY 3,1999.


No



Initiated By: SECURITIES AND EXCHANGE COMMISSION


Allegations: FROM IN OR ABOUT AUGUST 1992 THROUGH IN OR ABOUT AUGUST1993,QUEST AND YU FAILED REASONABLY TO SUPERVISE NAKOSKI WITH AVIEW TOWARDS PREVENTING HIS VIOLATIONS OF THE FEDERALSECURITIES LAWS AS ALLEGED.








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


CIVIL AND ADMINISTRATIVE PENALTY(IES)/FINE(S)


Docket/Case Number: NY-6203;02CIV.01512(PLF)

Principal Product Type: Other

Other Product Type(s): OUTSIDE ACTIVITIES


Resolution:

Other Sanctions Ordered: TO CONDUCT INSPECTIONS OF ITS BRANCH OFFICES AND OTHERREGISTERED REPRESENTATIVES, TO BAR PRESIDENT FROMASSOCIATION WITH ANY BROKER-DEALER OR INVESTMENT ADVISOR IN ASUPERVISORY CAPACITY WITH A RIGHT TO APPLY TO BECOME SOASSOCIATED AFTER ONE YEAR.

Sanction Details: TO IMPOSE MONEY PENALTIES OF $50000 EACH ON FIRM AND ITSPRESIDENT. TO CONDUCT INSPECTIONS OF ITS BRANCH OFFICES ANDOTHER REGISTERED REPRESENTATIVES, TO BAR PRESIDENT FROMASSOCIATION WITH ANY BROKER-DEALER OR INVESTMENT ADVISOR IN ASUPERVISORY CAPACITY WITH A RIGHT TO APPLY TO BECOME SOASSOCIATED AFTER ONE YEAR. IN THE PRELIMINARY INJUNCTIONINJOINED FIRM AND YU OBEY THE BAR WHILE THE OUTCOME OF COURTACTION IS PENDING.

Firm Statement AFTER TWO WEEKS HEARING, WITNESS ALL ACTUAL EVIDENCES,ADMINISTRATIVE LAW JUDGE LILLIAN A. MC EWEN DISMISSED ALLCHARGES ON APRIL 13, 1999. ON MAY 3, 1999, SEC DIVISION OFENFORCEMENT APPEALED THE VERDICT TO THE COMMISSIONERS OFSEC. SEC REVERSE INITIAL DECISION AND ORDER FINES AND THEPRESIDENT BAR FROM SUPERVISION FOR ONE YEAR. ON DECEMBER 18,2001, RESPONDENTS APPEALED TO THE U. S. COURT OF APPEALS. ONMARCH 18, 2002, U. S. COURT OF APPEALS DISMISSED FOR LACK OFJURISDICTION BECAUSE OF LATE FILING FROM APPLICANT'S ATTORNEY.ON APRIL 18, 2002, RESPONDENTS AGREED TO COMPLY WITH THECOMMISSION'S ORDER.SEC DID NOT BELIEVE THAT YU AND FIRM OBEY THE BAR, THEREFOREFILE A PRELIMINARY AND PERMANENT INJUNCTION ON SEP 25, 2002. ONMAY 29TH, 2003, SEC ORDERED THAT THE COMPLAINT IS DISMISSED WITHPREJUDICE AGAINST ALL DEFENDANTS.


Decision






Disclosure 5 of 5

i


Initiated By: ARIZONA CORPORATION COMMISSION, SECURITIESDIVISION




Docket/Case Number: S-4737-BD-I

URL for Regulatory Action:

Principal Product Type:


Allegations: SALES TO ARIZONA RESIDENTS WITHOUT BENEFIT OFBD REGISTRATION WITHIN THE STATE IN VIOLATION OF A.R.S. SECTION44-1842.



Resolution:


Sanction Details: QUEST CONSENTED TO ENTRY OF AN ORDER ASSESSING A$3,500 ADMINISTRATIVE PENALTY.

Regulator Statement Not Provided


Consent


Initiated By: ARIZONA CORPORATION COMMISSION


Docket/Case Number: 57225 S-4737-BD-I

Allegations: ONE OF APPLICANTS' EX-RR SOLD APPROXIMATELY 20 TRANSACTIONS TO7 ARIZONA RESIDENTS BEFORE ARIZONA'S LICENSE IS TO BE APPROVED.








Other


ADMINISTRATIVE

Docket/Case Number: 57225 S-4737-BD-I




Resolution:


Sanction Details: MONETARY FINE OF $3500.00 WAS ORDERED 01/16/91 AND THIS ORDERSHALL NOT CONSTITUTE A DISQUALIFICATION OF A.A.C. R14-4-126 (E)OFTHE RULES AND REGUALATIONS OF THE SECURITIES ACT OF ARIZONA.


Order






Arbitration Award - Award / Judgment

Brokerage firms are not required to report arbitration claims filed against them by customers; however, BrokerCheckprovides summary information regarding FINRA arbitration awards involving securities and commodities disputesbetween public customers and registered securities firms in this section of the report. The full text of arbitration awards issued by FINRA is available at www.finra.org/awardsonline.

Disclosure 1 of 6


Type of Event: ARBITRATION

Arbitration Forum:

Case Initiated:

Case Number:

Allegations:

Disputed Product Type:

Sum of All Relief Requested:

Disposition:

Disposition Date:

Sum of All Relief Awarded:

NASD

11/09/2000

00-04454

ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED

DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES

$33,464.26

AWARD AGAINST PARTY

09/20/2001

$33,464.25

There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.

Disclosure 2 of 6

i



Arbitration Forum:

Case Initiated:

Case Number:

Allegations:

FINRA

01/09/2018

17-03375

ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-FRAUD;ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER





www.finra.org/awardsonline

https://www.finra.org/arbitration-mediation/arbitration-awards-online?search=00-04454



Case Number:



Disposition:

Disposition Date:


17-03375

OTHER TYPES OF SECURITIES

$200,000.01

AWARD AGAINST PARTY

01/24/2019

$276,226.42


Disclosure 3 of 6

i



Arbitration Forum:

Case Initiated:

Case Number:

Allegations:



Disposition:

Disposition Date:


NASD

04/07/1993

93-01333

ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY

COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE

Unspecified Damages

AWARD AGAINST PARTY

02/02/1994

$12,000.00


Disclosure 4 of 6

i



Arbitration Forum:

Allegations:

NASD

ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTACTIVITY-UNAUTHORIZED TRADING








Arbitration Forum:

Case Initiated:

Case Number:



Disposition:

Disposition Date:


NASD

11/23/1994

94-04642

DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS

$51,000.00

AWARD AGAINST PARTY

02/23/1996

$17,044.00


Disclosure 5 of 6

i



Arbitration Forum:

Case Initiated:

Case Number:

Allegations:



Disposition:

Disposition Date:


NASD

08/20/1997

97-03798

ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE

DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS; OTHER TYPESOF SECURITIES

$329,198.00

AWARD AGAINST PARTY

10/12/1998

$53,000.00


Disclosure 6 of 6

i










Arbitration Forum:

Case Initiated:

Case Number:

Allegations:



Disposition:

Disposition Date:


NASD

08/04/1999

99-01517

ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE

DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS

$6,697,527.14

AWARD AGAINST PARTY

01/16/2004

$221,520.06








End of Report

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