Final Decision Entered In FINRA Disciplinary Case, Miami Broker Fined And Suspended
Jorge Antonio Netto (CRD #2432661) is a registered broker and previously registered investment adviser (RIA). Since April of 2017, Mr. Netto has been registered as a securities representative with Boreal Capital Securities in Miami, Florida. Previously, the broker has also been associated with other South Florida firms, including Northeast Securities and Colony Park Financial Services.
FINRA’s Office of Hearing Officers (OHO) has now issued a final decision in the case against Mr. Netto. The broker is facing a fine and a suspension for improperly engaging in undisclosed outside business activities (OBAs). Here, our Miami selling away investments lawyer discusses the sanctions against Florida broker Jorge Antonio Netto in more detail.
The Allegations Against Boreal Capital Securities Broker Jorge Antonio Netto
Miami-based Boreal Capital Securities broker Jorge Antonio Netto faced allegations of engaging in improper outside business activities (OBAs). Under FINRA regulations (FINRA Rules 3270), registered representatives are required to disclose to and seek approval from their member firm prior to engaging in OBAs. It is an important securities industry regulation as it helps to ensure that investors are protected from potential risks posed by a broker’s undisclosed conflict of interest.
OHO Decision: Broker Engaged in Improper Outside Business Activities
Jorge Antonio Netto was named as the respondent in a FINRA complaint alleging that he engaged in improper OBAs while a representative of Boreal Capital Securities. According to the allegations raised in the complaint, Mr. Netto had ownership interests and/or other beneficiary roles in at least four different limited liability companies (LLCs). These outside Interests were purportedly not disclosed to his member firm.
The matter went before FINRA’s OHO. The complaint noted that Mr. Netto advised a client—a customer of his member firm—to sell more than $100,000 in securities positions to invest in a company within which he had a personal financial interest that was not disclosed to his brokerage firm. Upon review, OHO determined that Mr. Netto’s professional conduct constitutes a violation of FINRA Rule 3270.
Sanctions: Four Month Suspension, $92,770.62 in Financial Penalties
Based on the final decision from the FINRA Office of Hearing Officers, Boreal Securities broker Jorge Antonio Netto is subject to a number of different sanctions. To start, Mr. Netto has been suspended from the securities industry for a period of four months. The suspension will run until November 30th, 2022. Additionally, Mr. Netto is facing a total of $92,770.62 in financial penalties. He has been fined $10,000, ordered to pay $75,000 in disgorgement, and is subject to $7,770.62 in other monetary penalties.
Speak to Our Miami, FL Undisclosed Outside Business Activities Lawyer Today
At Carlson & Associates, P.A., our Miami broker misconduct attorney is dedicated to providing justice-driven guidance and support to investors. Were you damaged by the improper conduct of a broker or brokerage firm? Professional representation is just a phone call away. Contact our Miami law office today to request your confidential, no commitment case review.
Source:
brokercheck.finra.org/individual/summary/2432661