Former New Jersey Broker Barred from FINRA Member Firms following Civil Order Alleging Pattern of Fraudulent Trading ActivityFriday, November 22, 2019
Former registered representative Philip Sparacino recently submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) Department of Enforcement in which he consented to a bar from associating with member firms for refusing to cooperate with an investigation.
According to his FINRA BrokerCheck report, Sparacino was associated with First Standard Financial Company, LLC in Red Bank, New Jersey from July 2014 to October 2019. Sparacino resigned at the order of the New Jersey Bureau of Securities who fined him $250,000 in penalties for allegedly engaging in a pattern of unauthorized, excessive, unsuitable, and fraudulent trading activity. Sparacino allegedly accessed dozens of customer accounts that he inherited from agents who left First Standard and used them to generate commissions at the customers’ expense. Sparacino’s alleged fraudulent activity included: 1) making unsuitable recommendations; 2) executing transactions on behalf of customers without their knowledge; 3) charging unreasonable and inequitable fees to the customers; and 4) making misrepresentations or omissions of material facts.
After his resignation from First Standard Financial, FINRA Department of Enforcement began investigating the same allegations made by the New Jersey Bureau of Securities. On October 28, 2019, FINRA staff sent a request that he produce information and documents pursuant to FINRA Rule 8210. On October 30, 2019, through an email sent by his counsel, Sparacino stated that he would not produce the information and documents requested, thus violating FINRA Rule 8210 and 2010.
By signing the AWC and without admitting or denying the allegations made against him, Sparacino consented to a bar from association with any FINRA member firm in all capacities.
Oftentimes brokerage firms can be held liable for the brokers’ misconduct if they failed to supervise them while registered at the firm. If you lost money invested with a broker or advisor and you suspect wrongdoing, you may be able to recover from your broker or the brokerage firm where he or she was registered. Since 1998, the experienced attorneys at ChapmanAlbin LLC have been fighting for victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free consultation.