Sowell Financial Services, Llc

Allegations: A RULE 2010, NASD RULES 2110, 2370,3030. MRPAUL ENGAGED IN OUTSIDE BUSINESS ACTIVITIES WITHOUT PROVIDING NOTIFICATION TO HIM MEMBER FIRM. MR. PAUL OWNED AND OPERATED REAL ESTATE DEVELOPMENT COMPANIES THAT WERE NOT DISCLOSED TO HIS FIRM. MR. PAUL PROVIDED INACCURATE INFORMATION TO HIS FIRM. MR. PAUL BORROWED $6,500,000.00 DOLLARS FROM HIS CLIENT WHILE CLAIMING HE DID NOT BORROW FUNDS FROM CLIENT IN THE COMPLIANCE QUESTIONNAIRE Status: Final Sanction Detail: MR. PAUL WAS SUSPENDED FOR ONE YEAR BEGINNING 05/07/2012 AND ENDING ON 05/06/2013 AS A INVESTMENT ADVISOR REPRESENTATIVE AND A BROKER DEALER SALES PERSON. A FINE OF $20,000.00 WAS ACCESSED AND PAYABLE UPON HIS REASSOCIATION WITH A MEMBER FIRM Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS, MR. PAUL CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF THE FINDINGS. HE WS SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR ONE YEAR BEGINNING 05/07/2012 AND ENDING 05/06/2013. HE WAS ALSO FINED $20,000.00 PAYABLE UPON HIS REASSOCIATION WITH A MEMBER FIRM

Allegations: MR. PAUL ALLEGEDLY BORROWED FUNDS FROM A CLIENT, PROVIDED FALSE INFORMATION TO HIS FIRM ABOUT THE LOAN, PROVIDED FALSE INFORMATION TO HIS FIRM ABOUT OUTSIDE BUSINESS ACTIVITIES, INTRODUCING CLIENTS TO BUSINESS OUTSIDE HIS FIRM AND PROVIDING FALSE INFORMATION TO HIS FIRM ABOUT OUTSIDE INVESTMENTS Status: Final Sanction Detail: MR. PAUL WAS BARRED (TIME LIMITED) AS AN INVESTMENT ADVISOR REPRESENTATIVE, BROKER DEALER SALESPERSON FOR A PERIOD OF EIGHTEEN MONTHS BEGINNING 08/01/2014 AND ENDING 01/31/2016 Summary: WITHOUT ADMITTING OR DENYING THE STATE'S ALLEGATIONS, MR. PAUL AGREED TO CEASE AND DESIST FROM VIOLATING THE SECURITIES ACT OF WASHINGTON. MR. PAUL PAID AN ADMINISTRATIVE FINE OF $20,000.00, AND INVESTIGATIVE COST OF $4,500.00. FURTHER MR. PAUL AGREED TO AN 18 MONTH BAR FROM 08/01/2014 TO 01/31/2016 AS A INVESTMENT ADVISOR REPRESENTATIVE OR BROKER DEALER SALES PERSON