Muntz Financial, Llc

Allegations: ALLEGATIONS CONCERNED MUNTZ FINANCIAL (1) NOT FILING AN AUDITED BALANCE SHEET WITH THE DEPARTMENT AS OF ITS FISCAL YEAR END; AND (2) NOT TAKING STEPS NECESSARY TO ENSURE THAT MATERIAL INFORMATION CONTAINED IN ITS FORM ADV AND EXHIBITS REMAINED CURRENT AND ACCURATE AND FILED TIMELY WITH THE DEPARTMENT, AS REQUIRED BY APPLICABLE DEPARTMENT REGULATIONS. Status: Final Sanction Detail: MUNTZ FINANCIAL AND THE PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES ENTERED INTO A CONSENT AGREEMENT AND ORDER THAT PROVIDES FOR A TOTAL ADMINISTRATIVE ASSESSMENT OF $80,000 AGAINST MUNTZ FINANCIAL, TO BE PAID OVER TIME. Summary: ON DECEMBER 18, 2023, MUNTZ FINANCIAL, WITHOUT ADMITTING OR DENYING THE SUBSTANCE OF THE ALLEGATIONS, ENTERED INTO A CONSENT AGREEMENT WITH THE PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES (THE "DEPARTMENT") CONCERNING ALLEGATIONS THAT MUNTZ FINANCIAL (1) DID NOT FILE AN AUDITED BALANCE SHEET WITH THE DEPARTMENT AS OF ITS FISCAL YEAR END; AND (2) DID NOT TAKE STEPS NECESSARY TO ENSURE THAT MATERIAL INFORMATION CONTAINED IN ITS FORM ADV AND EXHIBITS REMAINED CURRENT AND ACCURATE AND FILED TIMELY WITH THE DEPARTMENT, AS REQUIRED BY APPLICABLE DEPARTMENT REGULATIONS. PURSUANT TO THE TERMS OF THE CONSENT AGREEMENT AND ORDER, MUNTZ FINANCIAL WILL PAY TO THE DEPARTMENT A TOTAL ADMINISTRATIVE ASSESSMENT OF $80,000, PAYABLE IN QUARTERLY INSTALLMENTS BEGINNING IN JANUARY 2024 AND ENDING IN OCTOBER 2025.

Allegations: FROM APPROXIMATELY JUNE 2021 THROUGH APRIL 2022, STRZELECKI IMPROPERLY ALLOCATED PROFITABLE TRADES TO HIS PERSONAL ACCOUNTS, FAMILY MEMBERS' ACCOUNTS, AND OTHER AFFILIATED ACCOUNTS (THE "FAVORED ACCOUNTS") AT THE EXPENSE OF HIS OTHER ADVISORY CLIENTS. DURING THIS PERIOD, STRZELECKI ALLOCATED A DISPROPORTIONATE SHARE OF TRADES WITH POSITIVE FIRST DAY RETURNS TO THE FAVORED ACCOUNTS, WHILE ALLOCATING A DISPROPORTIONATE SHARE OF TRADES WITH NEGATIVE FIRST DAY RETURNS TO OTHER CLIENT ACCOUNTS HE MANAGED (THE "DISFAVORED ACCOUNTS"). STRZELECKI WAS ABLE TO DO THIS BY TRADING EQUITIES AND OPTIONS IN A MASTER, OR OMNIBUS, ACCOUNT AND THEN WAITING UNTIL LATER IN THE DAY TO ALLOCATE THOSE TRADES TO HIS OWN PERSONAL OR HIS CLIENTS' ACCOUNTS. AS A RESULT OF THESE UNEVEN ALLOCATIONS, THE FAVORED ACCOUNTS RECEIVED EXCESS PROFITS OF APPROXIMATELY $63,928 ($51,312 OF WHICH WENT TO STRZELECKI'S PERSONAL ACCOUNTS), WHILE THE DISFAVORED ACCOUNTS SUFFERED CORRESPONDING EXCESS LOSSES. Status: Final Sanction Detail: MR. STRZELECKI WILL BE SUSPENDED FROM THE FINANCIAL INDUSTRY IN ALL CAPACITIES FOR A PERIOD OF 6 MONTHS, BEGINNING ON 10/07/2024 AND ENDING ON 04/06/2025 AND SHALL PAY DISGORGEMENT OF $51,312, PREJUDGMENT INTEREST OF $8,390.98, AND CIVIL PENALTIES OF $63,928 NO PORTION OF THE PENALTY WAS WAIVED, AND SHALL BE PAID IN THE FOLLOWING INSTALLMENTS: $51,312.00 (WHICH WAS PAID ON 10/04/2024), AND PAYMENTS EVERY 90 DAYS IN THE AMOUNT OF $9,039.87 UNTIL SATISFIED. Summary: MR. STRZELECKI IS ACTIVELY SERVING HIS SUSPENSION, AND CURRENT ON PAYMENT OF MONETARY FINES AND DISGORGEMENT.