User Guidance www.adviserinfo.sec.gov Investment Adviser Representative Public Disclosure Report JOHN HERMAN COX CRD# 1944308 Report #64480-91763, data current as of Tuesday, September 4, 2018. Section Title Page(s) Report Summary 1 Qualifications 2-3 Registration and Employment History 4 Disclosure Information 5 User Guidance www.adviserinfo.sec.gov IAPD Information about Investment Adviser Representatives IAPD offers information on all current-and many former-Investment Adviser Representatives. Investors are strongly encouraged to use IAPD to check the background of Investment Adviser Representatives before deciding to conduct, or continue to conduct, business with them. · · · · · · · What is included in a IAPD report? IAPD reports for individual Investment Adviser Representatives include information such as employment history, professional qualifications, disciplinary actions, criminal convictions, civil judgments and arbitration awards. It is important to note that the information contained in an IAPD report may include pending actions or allegations that may be contested, unresolved or unproven. In the end, these actions or allegations may be resolved in favor of the Investment Adviser Representative, or concluded through a negotiated settlement with no admission or finding of wrongdoing. Where did this information come from? The information contained in IAPD comes from the Investment Adviser Registration Depository (IARD) and FINRA's Central Registration Depository, or CRD®, (see more on CRD below) and is a combination of: · · · · · · · · · · · · o information the states require Investment Adviser Representatives and firms to submit as part of the registration and licensing process, and o information that state regulators report regarding disciplinary actions or allegations against Investment Adviser Representatives. o How current is this information? Generally, Investment Adviser Representatives are required to update their professional and disciplinary information in IARD within 30 days. Need help interpreting this report? For help understanding how to read this report, please consult NASAA's IAPD Tips page http://www.nasaa.org/IAPD/IARReports.cfm. What if I want to check the background of an Individual Broker or Brokerage firm? To check the background of an Individual Broker or Brokerage firm, you can search for the firm or individual in IAPD. If your search is successful, click on the link provided to view the available licensing and registration information in FINRA's BrokerCheck website. Are there other resources I can use to check the background of investment professionals? It is recommended that you learn as much as possible about an individual Investment Adviser Representative or Investment Adviser firm before deciding to work with them. Your state securities regulator can help you research individuals and certain firms doing business in your state. The contact information for state securities regulators can be found on the website of the North American Securities Administrators Association http://www.nasaa.org. User Guidance www.adviserinfo.sec.gov Investment Adviser Representative Report Summary JOHN HERMAN COX (CRD# 1944308) The report summary provides an overview of the Investment Adviser Representative's professional background and conduct. The information contained in this report has been provided by the Investment Adviser Representative, investment adviser and/or securities firms, and/or securities regulators as part of the states' investment adviser registration and licensing process. The information contained in this report was last updated by the Investment Adviser Representative, a previous employing firm, or a securities regulator on 06/14/2011. CURRENT EMPLOYERS COX FINANCIAL GROUP, LTD. IARD# 123955 1051 PERIMETER DRIVE SUITE 550 SCHAUMBURG, IL 60173-5807 Registered with this firm since: 05/09/1998 QUALIFICATIONS This Investment Adviser Representative is currently registered in 1 jurisdiction(s). Is this Investment Adviser Representative currently suspended with any jurisdiction? No Note: Not all jurisdictions require IAR registration or may have an exemption from registration. Additional information including this individual's qualification examinations and professional designations is available in the Detailed Report. REGISTRATION HISTORY This Investment Adviser Representative was previously registered with the following Investment Adviser firms: FIRM (IARD#) - LOCATION COX FINANCIAL GROUP, LTD. (IARD# 123955) - SCHAUMBURG, IL COX FINANCIAL GROUP, LTD. (IARD# 123955) - SCHAUMBURG, IL REGISTRATION DATES 05/09/1998 - 12/31/2013 05/09/1998 - 12/31/2012 For additional registration and employment history details as reported by the individual, refer to the Registration and Employment History section of the Detailed Report. DISCLOSURE INFORMATION Disclosure events include certain criminal charges and convictions, formal investigations and disciplinary actions initiated by regulators, customer disputes and arbitrations, and financial disclosures such as bankruptcies and unpaid judgments or liens. Are there events disclosed about this Investment Adviser Representative? Yes The following types of events are disclosed about this Investment Adviser Representative: Type Count Regulatory Event 3 ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 1 User Guidance www.adviserinfo.sec.gov Investment Adviser Representative Qualifications REGISTRATIONS This section provides the states and U.S. territories in which the Investment Adviser Representative is currently registered and licensed, the category of each registration, and the date on which the registration became effective. This section also provides, for each firm with which the Investment Adviser Representative is currently employed, the address of each location where the Investment Adviser Representative works. This individual is currently registered with 1 jurisdiction(s) through his or her employer(s). Employment 1 of 1 Firm Name: COX FINANCIAL GROUP, LTD. Main Address: 1051 PERIMETER DRIVE SUITE 550 SCHAUMBURG, IL 60173-5807 123955 Firm IARD#: U.S. State/ Territory Status Date Illinois Approved 05/09/1998 Branch Office Locations This individual does not have any registered Branch Office where the individual is located. ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 2 User Guidance www.adviserinfo.sec.gov Investment Adviser Representative Qualifications PASSED INDUSTRY EXAMS This section includes all required state securities exams that the Investment Adviser Representative has passed. Under limited circumstances, an Investment Adviser Representative may attain registration after receiving an exam waiver based on a combination of exams the Investment Adviser Representative has passed and qualifying work experience. Likewise, a new exam requirement may be grandfathered based on an Investment Adviser Representative's specific qualifying work experience. Exam waivers and grandfathering are not included below. This individual has passed the following exams: Exam Uniform Securities Agent State Law Examination (S63) Category Series 63 Date 02/28/1992 PROFESSIONAL DESIGNATIONS This section details that the Investment Adviser Representative has reported 0 professional designation(s). No information reported. ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 3 User Guidance www.adviserinfo.sec.gov Investment Adviser Representative Registration and Employment History PREVIOUSLY REGISTERED WITH THE FOLLOWING INVESTMENT ADVISER FIRMS This section indicates that state registration records show this Investment Adviser Representative previously held registrations with the following firms: Registration Dates 05/09/1998 - 12/31/2013 05/09/1998 - 12/31/2012 Firm Name COX FINANCIAL GROUP, LTD. COX FINANCIAL GROUP, LTD. IARD# 123955 123955 Branch Location SCHAUMBURG, IL SCHAUMBURG, IL EMPLOYMENT HISTORY Below is the Investment Adviser Representative's employment history for up to the last 10 years. Please note that the Investment Adviser Representative is required to provide this information only while registered and the information is not updated after the Investment Adviser Representative ceases to be registered, with a state regulator. Therefore, an employment end date of "Present" may not reflect the Investment Adviser Representative's current employment status. Employment Dates 02/1997 - Present 07/1990 - Present 10/1988 - Present 03/1985 - Present Employer Name EQUITY PROPERTY MANAGMENT, LLC COX, OAKES & ASSOCIATES, LTD. FINANCIAL EQUITY ASSOCIATES, INC. COX FINANCIAL GROUP, LTD. Employer Location SCHAUMBURG, IL SCHAUMBURG, IL SCHAUMBURG, IL SCHAUMBURG, IL OTHER BUSINESS ACTIVITIES This section includes information, if any, as provided by the Investment Adviser Representative regarding other business activities the Investment Adviser Representative is currently engaged in either as a proprietor, partner, officer, director, employee, trustee, agent, or otherwise. This section does not include non-investment related activity that is exclusively charitable, civic, religious, or fraternal and is recognized as tax exempt. No information reported. ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 4 User Guidance www.adviserinfo.sec.gov Investment Adviser Representative Disclosure Summary Disclosure Information What you should know about reported disclosure events: (1) Certain thresholds must be met before an event is reported to IARD, for example: · A law enforcement agency must file formal charges before an Investment Adviser Representative is required to report a particular criminal event.; · A customer dispute must involve allegations that an Investment Adviser Representative engaged in activity that violates certain rules or conduct governing the industry and that the activity resulted in damages of at least $5,000. (2) Disclosure events in IAPD reports come from different sources: As mentioned in the "About IAPD" section on page 1 of this report, information contained in IAPD comes from Investment Adviser Representatives, firms and regulators. When more than one of these sources reports information for the same disclosure event, all versions of the event will appear in the IAPD report. The different versions will be separated by a solid line with the reporting source labeled. (3) There are different statuses and dispositions for disclosure events: · · A disclosure event may have a status of pending, on appeal, or final. o A "pending" disclosure event involves allegations that have not been proven or formally adjudicated. o A disclosure event that is "on appeal" involves allegations that have been adjudicated but are currently being appealed. o A "final" disclosure event has been concluded and its resolution is not subject to change. A final disclosure event generally has a disposition of adjudicated, settled or otherwise resolved. o 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 party charged with some alleged wrongdoing. o A "settled" matter generally represents a disposition wherein the parties involved in a dispute reach an agreement to resolve the matter. Please note that Investment Adviser Representatives and firms may choose to settle customer disputes or regulatory matters for business or other reasons. o A "resolved" matter usually includes a disposition wherein no payment is made to the customer or there is no finding of wrongdoing on the part of the Investment Adviser Representative. Such matters generally involve customer disputes. (4) You may wish to contact the Investment Adviser Representatives to obtain further information regarding any of the disclosure events contained in this IAPD report. ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 5 User Guidance www.adviserinfo.sec.gov DISCLOSURE EVENT DETAILS When evaluating this information, please keep in mind that some items may involve pending actions or allegations that may be contested and have not been resolved or proven. The event may, in the end, be withdrawn, dismissed, resolved in favor of the Investment Adviser Representative, or concluded through a negotiated settlement with no admission or finding of wrongdoing. This report provides the information exactly as it was reported to the Investment Adviser Registration Depository. Some of the specific data fields contained in the report may be blank if the information was not provided. The following types of events are disclosed about this Investment Adviser Representative: Type Regulatory Event Count 3 Regulatory Event This disclosure event may include a final, formal proceeding initiated by a regulatory authority (e.g., a state securities agency, a federal regulator such as the Securities and Exchange Commission or the Commodities Futures Trading Commission, or a foreign financial regulatory body) for a violation of investment-related rules or regulations. This disclosure event may also include a revocation or suspension of an Investment Adviser Representative's authority to act as an attorney, accountant or federal contractor. Disclosure 1 of 3 Reporting Source: Firm Regulatory Action Initiated By: NASD CHICAGO OFFICE Sanction(s) Sought: Civil and Administrative Penalt(ies) /Fine(s) Other Sanction(s) Sought: Date Initiated: 05/10/2005 Docket/Case Number: 20050012440 Employing firm when activity occurred which led to the regulatory action: FEA, INC. Product Type: Direct Investment(s) - DPP & LP Interest(s) Other Product Type(s): Allegations: BEGINNING ON FEBRUARY 8, 2005 COX PERFORMED DUTIES AS A REGISTERED PERSON AND ENGAGED IN ACTIVITIES REQUIRING REGISTRATION ALTHOUGH HIS REGISTRATION HAD BEEN DEEMED INACTIVE AS OF FEBRUARY 7, 2005 FOR FAILING TO COMPLY WITH THE CE REGULATORY ELEMENT WITHIN THE PRESCRIBED TIME FRAME. THIS VIOLATIVE CONDUCT OCCURRED UNTIL JUNE 7, 2005 WHEN HE SATISFIED THE CONTINUING EDUCATION REQUIREMENT. THE FOREGOING ACTS, PRACTICE AND CONDUCT CONSTITUTE SEPARATE AND DISTINCT VIOLATIONS OF RULES 1120(A) AND 2110 BY COX. Current Status: Pending Firm Statement I INADVERTENTLY FAILED TO COMPLETE MY CE REGULATORY ELEMENT WITHIN THE TIME FRAME REQUIRED AND WHILE DEEMED INACTIVE ENGAGED IN ACTIVITIES REQUIRING REGISTRATION. ©2018 FINRA. All rights reserved. Report# I64480-91763 requested on ERROR Tuesday, September 4, 2018 about JOHN COX. CORRECTED THIS BY SATISFYING THE CEHERMAN REGULATION IN JUNE, 2005 AND AS OF THE DATE OF THIS FILING I AM DULY ELEMENT 6 User Guidance I INADVERTENTLY FAILED TO COMPLETE MY CE REGULATORY ELEMENT www.adviserinfo.sec.gov WITHIN THE TIME FRAME REQUIRED AND WHILE DEEMED INACTIVE ENGAGED IN ACTIVITIES REQUIRING REGISTRATION. I CORRECTED THIS ERROR BY SATISFYING THE CE REGULATION ELEMENT IN JUNE, 2005 AND AS OF THE DATE OF THIS FILING I AM DULY REGISTERED AND DEEMED ACTIVE. i Disclosure 2 of 3 Reporting Source: Regulator Regulatory Action Initiated By: NASD Sanction(s) Sought: Date Initiated: 08/26/2004 Docket/Case Number: C8A040075 Employing firm when activity occurred which led to the regulatory action: FEA, INC. Product Type: Allegations: NASD CONDUCT RULE 2110, SEC RULE 10B-9 - JOHN H. COX FAILED TO COMPLY WITH THE TERMS OF THE MEMBERSHIP AGREEMENT WHEN HE RECEIVED FUNDS FROM CUSTOMERS FOR THE PURCHASES OF INTEREST IN A LIMITED PARTNERSHIP AND HELD THE FUNDS IN A BANK ACCOUNT HE CONTROLLED WHILE PURSUANT TO THE MEMBERSHIP AGREEMENT COX AGREED NOT TO HOLD CUSTOMER FUNDS AND OPERATE PURSUANT TO THE EXEMPTIVE PROVISIONS OF SEC RULE 15C3-3(K)(2)(I). COX FAILED TO OPEN AND USE A SPECIAL RESERVE BANK ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS WHICH MEETS THE REQUIREMENTS OF SEC RULE 15C3-3(F) AND COMPUTE THE MEMBER'S SPECIAL RESERVE REQUIREMENT PURSUANT TO SEC RULE 15C3-3 AS OF MONTH END AND WITHDRAWAL DATES. IN CONNECTION WITH THE SALE OF UNITS IN A LIMITED PARTNERSHIP, THE SUBSCRIPTION AGREEMENT AND MEMORANDUM STATED THAT THE PURCHASERS' FUNDS WOULD BE PROMPTLY REFUNDED TO INVESTORS WITHOUT INTEREST, CHARGE OR DEDUCTION IF AT LEAST $1,100,000 OR 22 UNITS WERE NOT SOLD BY NOVEMBER 15, 1999, THE CLOSING DATE, OR 30 DAYS THEREAFTER, DECEMBER 15, 1999. COX FAILED TO PROMPTLY RETURN THE SUBSCRIBERS' FUNDS TO THEM OR OBTAIN WRITTEN RECONFIRMATIONS OF THE OFFERING FROM THE EXISTING SUBSCRIBERS BY DECEMBER 15, 1999, WHEN BY THAT DATE ONLY 12 UNITS HAD BEEN SOLD IN BONA FIDE TRANSACTIONS, OR ONLY $600,000 HAD BEEN RECEIVED AND DEPOSITED INTO A SEGREGATED ACCOUNT FOR THE SUBSCRIBERS. SUCH FAILURE RENDERED THE REPRESENTATIONS IN THE MEMORANDUM AND SUBSCRIPTION AGREEMENT AS FALSE AND MISLEADING. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Does the order constitute a final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct? No Resolution Date: ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 7 User Guidance www.adviserinfo.sec.gov Resolution Date: 08/26/2004 Sanctions Ordered: Censure Civil and Administrative Penalty(ies)/Fine(s) Regulator Statement IN CONNECTION WITH THE SALE OF UNITS IN A LIMITED PARTNERSHIP, THE MEMORANDUM STATED THAT THE PURCHASERS' FUNDS WOULD BE PROMPTLY REFUNDED TO INVESTORS WITHOUT INTEREST, CHARGE OR DEDUCTION IF AT LEAST $1,200,000 OR 24 UNITS WERE NOT SOLD BY NOVEMBER 30, 2002, THE CLOSING DATE, OR 30 DAYS THEREAFTER. COX PURCHASED 7 UNITS FOR $350,000 TO ACHIEVE THE REQUIRED MINIMUM AMOUNT NECESSARY TO RELEASE THE FUNDS. WHILE THE MEMORANDUM DISCLOSED THE FACT THAT COX COULD PURCHASE UNITS OF THE LIMITED PARTNERSHIP, IT FAILED TO DISCLOSE THE TOTAL AMOUNT OF UNITS THAT THE GENERAL PARTNER AND ITS AFFILIATES COULD PURCHASE AND THAT THE PURCHASES WOULD BE FOR INVESTMENT, NOT RESALE. SUCH FAILURE RENDERED THE REPRESENTATIONS IN THE MEMORANDUM AS FALSE AND MISLEADING. IN CONNECTION WITH THE SALE OF UNITS IN ANOTHER LIMITED PARTNERSHIP, THE SUBSCRIPTION AGREEMENT AND MEMORANDUM STATED THAT THE PURCHASERS' FUNDS WOULD BE PROMPTLY REFUNDED TO INVESTORS WITHOUT INTEREST, CHARGE OR DEDUCTION IF AT LEAST $500,000 OR 10 UNITS WERE NOT SOLD BY MARCH 15, 2001, THE CLOSING DATE, OR 16 DAYS THEREAFTER, DECEMBER 15, 1999. COX FAILED TO PROMPTLY RETURN THE SUBSCRIBERS' FUNDS TO THEM OR OBTAIN WRITTEN RECONFIRMATIONS OF THE OFFERING FROM THE EXISTING SUBSCRIBERS BY MARCH 31, 2001 WHEN BY THAT DATE ONLY 12 UNITS HAD BEEN SOLD IN BONA FIDE TRANSACTIONS, OR ONLY $400,000 HAD BEEN RECEIVED AND DEPOSITED INTO A SEGREGATED ACCOUNT FOR THE SUBSCRIBERS. SUCH FAILURE RENDERED THE REPRESENTATIONS IN THE MEMORANDUM AND SUBSCRIPTION AGREEMENT AS FALSE AND MISLEADING. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS CENSURED AND FINED IN THE AMOUNT OF $12,500, WHICH IS JOINT AND SEVERAL. FINES PAID. i Reporting Source: Firm Regulatory Action Initiated By: NASD CHICAGO OFFICE Sanction(s) Sought: Civil and Administrative Penalt(ies) /Fine(s) Other Sanction(s) Sought: NONE Date Initiated: 08/26/2004 Docket/Case Number: C8A040075 Employing firm when activity occurred which led to the regulatory action: FEA, INC. Product Type: Direct Investment(s) - DPP & LP Interest(s) Other Product Type(s): Allegations: NASD RULE 2110, SEC RULES 10B-9, 15C2-4, 15C3-3 - FEA, INC. USED THE MAILS OR OTHER MEANS OR INSTRUMENTALITIES OF INTERSTATE COMMERCE TO EFFECT TRANSACTIONS IN SECURITIES, OR RECEIVED HELDrequested CUSTOMER FUNDS OR SECURITIES, WHILE THECOX. FIRM FAILED ©2018 FINRA. All rights reserved. Report# AND 64480-91763 on Tuesday, September 4, 2018 about JOHN HERMAN TO MAINTAIN THE MINIMUM REQUIRED CAPITAL. THE FIRM ALSO FAILED 8 User Guidance www.adviserinfo.sec.gov NASD RULE 2110, SEC RULES 10B-9, 15C2-4, 15C3-3 - FEA, INC. USED THE MAILS OR OTHER MEANS OR INSTRUMENTALITIES OF INTERSTATE COMMERCE TO EFFECT TRANSACTIONS IN SECURITIES, OR RECEIVED AND HELD CUSTOMER FUNDS OR SECURITIES, WHILE THE FIRM FAILED TO MAINTAIN THE MINIMUM REQUIRED CAPITAL. THE FIRM ALSO FAILED TO COMPLY WITH THE TERMS OF ITS MEMBERSHIP AGREEMENT WHEN IT RECEIVED FUNDS FROM CUSTOMERS FOR THE PURCHASES OF INTEREST IN A LIMITED PARTNERSHIP AND HELD THE FUNDS IN A BANK ACCOUNT WHILE PURSUANT TO THE MEMBERSHIP AGREEMENT THE FIRM AGREED THAT IT WOULD NOT HOLD CUSOMTER FUNDS AND OPERATE PURSUANT TO THE EXEMPTIVE PROVISIONS OF SEC RULE 15C3-3(K)(2)(I). FEA, INC.F ILED TO OPEN AND USE A SPECIAL RESERVE BANK ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS WHICH MEETS THE REQUIREMENTS OF SEC RULE 15C3-3(F) AND COMPUTE THE MEMBER'S SPECIAL RESERVE REQUIREMENT PURSUANT TO SEC RULE 15C3-3 AS OF MONTH END AND WITHDRAWAL DATES. IN CONNECTION WITH THE SALE OF UNITS IN A LIMITED PARTNERSHIP, THE SUBSCRIPTION AGREEMENT AND MEMORANDUM STATED THAT THE PURCHASERS' FUNDS WOULD BE PROMPTLY REFUNDED TO INVESTORS WITHOUT INTEREST, CHARGE OR DEDUCTION OF AT LEAST $1,100,000 OR 22 UNITS WERE NOT SOLD BY NOVEMBER 15, 1999, THE CLOSING DATE, OR 30 DAYS THEREAFTER, DECEMBER 15, 1999. THE FIRM FAILED TO PROMPTLY RETURN THE SUBSCRIBERS' FUNDS TO THEM OR OBTAIN WRITTEN RECONFIRMATIONS OF THE OFFERING FROM THE EXISTING SUBSCRIBERS BY DECEMBER 15, 1999, WHEN BY THAT DATE ONLY 12 UNITS HAD BEEN SOLD IN BONA FIDE TRANSACTIONS, OR ONLY $600,000 HAD BEEN RECEIVED AND DEPOSITED INTO A SEGREGATED ACCOUNT FOR THE SUBSCRIBERS. SUCH FAILURE RENDERED THE REPRESENATIONS IN THE MEMORANDUM AND SUBSCRIPTION AGREEMENT AS FALSE AND MISLEADING. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 08/26/2004 Sanctions Ordered: Censure Monetary/Fine $15,000.00 Other Sanctions Ordered: TO PREPARE AND FOLLOW A CORRECTIVE ACTION STATEMENT TO ASSURE THESE VIOLATIONS DO NOT OCCUR IN THE FUTURE. Sanction Details: FEA WAS FINED $12,500 COX WAS FINED $ 2,500 i Disclosure 3 of 3 Reporting Source: Regulator Regulatory Action Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Sanction(s) Sought: Other Sanction(s) Sought: Date Initiated: 09/21/1990 Docket/Case Number: CHI-1301-AWC Employing firm when activity occurred which led to the regulatory action: FEA, INC. Product Type: ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 9 User Guidance www.adviserinfo.sec.gov Product Type: Other Product Type(s): Allegations: Current Status: Final Resolution: Consent Resolution Date: 09/21/1990 Sanctions Ordered: Censure Monetary/Fine $1,000.00 Other Sanctions Ordered: Sanction Details: Regulator Statement ON SEPTEMBER 21, 1990, THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CHI-1301-AWC (DISTRICT NO. 8) SUBMITTED BY RESPONDENTS FEA, INC. AND JOHN H. COX WAS ACCEPTED; THEREFORE, THEY ARE CENSURED AND FINED $1,000, JOINTLY AND SEVERALLY (ARTICLE III, SECTIONS 1 AND 21(a) OF THE RULES OF FAIR PRACTICE - RESPONDENT MEMBER, ACTING THROUGH RESPONDENT COX, OFFERED AND SOLD INTERESTS IN AN ALL-OR-NONE LIMITED PARTNERSHIP OFFERING WHICH PROVIDED THAT SUBSCRIPTION PROCEEDS WOULD BE DEPOSITED AND HELD IN A SEPARATE ESCROW ACCOUNT UNTIL SUBSCRIPTIONS AGGREGATING $1,700,000 WERE RECEIVED. RESPONDENT ACCEPTED A CHECK FROM AN INVESTOR FOR OF THE PURCHASE OF PARTNERSHIP INTERESTS ON BEHALF OF FOUR INVESTORS WHOSE BONA FIDE SUBSCRIPTIONS HAD EARLIER BEEN SUBMITTED TO AND ACCEPED BY RESPONDENT MEMBER, CAUSED THE OFFERING TO BE CLOSED AND INVESTORS' FUNDS TO BE RELEASED FROM ESCROW EVEN THOUGH THE $87,500 CHECK HAD NOT CLEARED THE BANKING SYSTEM. THIS CHECK CLEARED WITHIN DAYS OF THE CLOSING. SUBSCRIPTION FUNDS FROM THE FOUR INVESTORS WERE SUBSEQUENTLY RELEASED AND COX FINANCIAL GROUP, LTD. WAS REIMBURSED WITHIN TWO WEEKS OF THE CLOSING OF THE OFFERING; AND, IN CONNECTION WITH THE LIMITED PARTNERSHIP OFFERING, FAILED TO MAKE A RECORD REFLECTING THE DATE SUBSCRIBERS' CHECKS WERE RECEIVED AND THE DATE THEY WERE TRANSMITTED TO THE ESCROW ACCOUNT). ***$1,000.00 J&S PAID ON 10/9/90 INVOICE #90-08-1107*** ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 10 User Guidance www.adviserinfo.sec.gov End of Report This page is intentionally left blank. ©2018 FINRA. All rights reserved. Report# 64480-91763 requested on Tuesday, September 4, 2018 about JOHN HERMAN COX. 11