New Jersey Broker Agrees to FINRA Sanctions to Resolve Allegations of Selling Away and Attempting to Settle Complaints without Firm ApprovalMonday, December 10, 2018
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) barring general securities representative Raymond Pirrello, Jr. for violating FINRA Rules by using unauthorized means of communication to conduct securities business and allegedly lied about it under oath.
According to his FINRA BrokerCheck report, Pirrello was most recently associated with Garden State Securities, Inc. (Garden State) in Hackensack, New Jersey from August 2008 to May 2016. He was also previously associated with The Concord Equity Group, LLC (August 2007 to August 2008) and J.P. Turner & Company, LLC (November 2000 to August 2007) in Saddlebrook, New Jersey.
According to the AWC, Pirrello used his personal cell phone and email address, which was not approved by Garden State, to conduct securities business from 2008 to 2015. Furthermore, FINRA claims that he did not retain any of the communications for Garden State’s record keeping. Then, when Pirrello was asked about the text messages with customers, he allegedly provided misleading on-the-record testimony stating that he did not send text messages to his customers.
In 2011, a customer filed a complaint against Pirrello claiming that he did not properly follow instructions and caused $300,000 in losses. According to the AWC, Pirrello paid $50,000 to the customer to settle the complaint instead of disclosing the complaint in his Form U4. FINRA also claims that between 2009 and 2015, Pirrello paid $388,000 to a different customer to try to settle a complaint, without approval from Garden State.
Based on the foregoing, Pirrello violated NASD Rule 3110(a) and FINRA Rules 1122, 4511, 8210 and 2010. Without admitting or denying the allegations made against him by FINRA, Raymond Pirrello consented to an 18-month suspension from associating with any FINRA member firm in any capacity and a $20,000 fine.
Many times, brokerage firms can be held liable if they failed to supervise a broker who committed misconduct while registered at their firm. If you lost money due to your broker’s misconduct, you may be able to recover from your broker or his or her associated brokerage firm. Call us at 1-877-410-8172 for a free, no obligation consultation. Since 1998, we have been fighting for victims of broker misconduct and investment fraud.