Columbus, Ohio Broker Barred for Failing to Cooperate with FINRA Investigation into Sales of Promissory Notes to Four CustomersThursday, July 16, 2020
On June 30, 2020, former general securities representative Michael Iannarino consented to a bar from associating with member firms registered with the Financial Industry Regulatory Authority (FINRA) in all capacities by failing to provide documents and information requested pursuant to FINRA Rule 8210.
On May 5, 2020, Iannarino’s former member firm, Private Client Services, LLC (PCS) based in Columbus, Ohio, filed an amended Form U5 disclosing that a customer initiated FINRA arbitration in connection with Iannarino’s recommendation that customers invest in promissory notes. Iannarino was associated with this firm from December 2015 to October 2016. Shortly after the Form U5 disclosure, FINRA Department of Enforcement began investigating a potential recommendation made by Iannarino that resulted in the sale of promissory notes to four individuals while he was associated with PCS. FINRA Department of Enforcement sent Iannarino requests for documents and information related to the disclosures but Iannarino provided only partial and incomplete responses to this request, thus violating FINRA Rule 8210 and 2010.
By signing the AWC, Iannarino resolved the allegations made against him, without admitting or denying any wrongdoing. Iannarino consented to a bar from associating with any FINRA member firm in any and all capacities.
Within the last ten years, Iannarino has been associated with four FINRA member firms based in Columbus, Ohio, including Pursche Kaplan Sterling Investments (December 2009 – August 2011), BCG Securities, Inc. (October 2011 – April 2015), Private Client Services, LLC (December 2015 – October 2016), and Stifel, Nicolaus & Company, Incorporated (August 2018 – October 2018). According to his FINRA BrokerCheck report, Iannarino was discharged from Stifel Nicolaus for allegedly “us[ing] time and price discretion to place block trades away from the firm after being instructed not to do so by firm management.” A customer dispute filed on February 11, 2020 alleged that Iannarino misrepresented an investment into unregistered promissory notes as a “safe low-risk investment with a specified or high return.”
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