The allegations read: Finra by-laws article iv, section 1, article v, section 2, finra rule 2010, nasd rules 2110, 3010, 3070(a), 3070(b), interpretative material 1000-1 - a member firm, acting through its chief compliance officer/chief executive officer, carl m. Birkelbach, failed to adequately supervise to ensure the timely reporting of customer settlements as required by nasd rule 3070 and the finra by-laws. Birkelbach relied upon an unregistered outside consultant to process rule 3070 filings and amendments to forms bd and u4, gave the consultant inadequate instructions and guidance and did not otherwise ensure that timely and complete filings and amendments were made. Birkelbach neglected to have the consultant process disclosures even after finra advised him of the deficiencies. Birkelbach failed to timely file 3070 disclosures regarding customer settlements and to amend forms bd and forms u4 to disclose this information. Birkelbach willfully failed to timely disclose a settlement with a customer on his form u4.
