FINRA Complaint: Florida Broker Engaged In Improper Outside Business Activities
Jorge Antonio Netto (CRD#: 2432661) is an actively registered FINRA broker. Since April of 2017, Mr. Netto has served as a representative for Boreal Capital Securities LLC in Miami, FL. Previously, he was associated with Northeast Securities Inc. in Coral Gables, FL (2014 to 2017).
On August 13th, 2021, FINRA filed a complaint against this broker alleging improper outside business activities. In this article, our Miami selling away lawyers provide a more comprehensive overview of FINRA’s complaint against South Florida broker Jorge Antonio Netto.
FINRA Complaint: Jorge Antonio Netto of Boreal Capital Securities LLC
Background & Facts
The Financial Industry Regulatory Authority (FINRA) launched an inquiry into the professional conduct of Boreal Capital Securities broker Jorge Antonio Netto after learning of allegations of potential improper outside business activities. Notably, Boreal Capital Securities was previously known by the name Mora WM Securities Inc. The relevant period of review in the case is from April of 2017 through April of 2018.
Allegations: Undisclosed Outside Business Activities
According to FINRA’s complaint, Miami broker Jorge Antonio Netto and three other individuals formed an LLC in Florida to purchase a warehouse in Central California as part of a business endeavor. During that time, the written supervisory procedures of Mora WM Securities—now known as Boreal Capital Securities—required all registered representatives to get prior written authorization before engaging in outside business activities.
Under FINRA Rule 3270, registered representatives must seek pre-approval from their brokerage firm before participating in an outside business activity. FINRA alleges that Mr. Netto owned, controlled, and managed third party companies involved in the Central California warehouse project without the knowledge of his brokerage firm. If proven true, the allegations in questions amount to a violation of FINRA Rule 3270 and FINRA Rule 2010.
The Proposed Sanctions
As of August of 2021, a FINRA complaint has been filed against Boreal Capital Securities broker Jorge Antonio Netto, but no findings have been issued. In its complaint, FINRA is seeking all appropriate sanctions, including findings of fact and conclusions of law, the imposition of civil financial penalties, and any other sanctions deemed proper.
Financial advisors must disclose outside business activities in order to protect investors. When brokers fail to inform their firm of their outside business conduct, conflicts of interests can easily arise. The brokerage firm is responsible for ensuring that its customers are protected from potential conflicts of interest. Brokers that fail to disclose outside business activities can face sanctions.
Call Our Miami, FL FINRA Arbitration Lawyers for a Confidential Case Evaluation
At Carlson & Associates, P.A., our Florida FINRA arbitration attorney has deep experience handling outside business activity cases. If you or your family member suffered significant investment losses because your broker engaged in improper, undisclosed outside business activities, we are ready to help. Give us a call today or reach out to us directly through our website for your confidential consultation. From our Miami law office, we advocate for investor rights throughout Florida.
Resource:
brokercheck.finra.org/individual/summary/2432661