David Michael Panetta, of Nutley, New Jersey, a registered representative formerly associated with Allstate Financial Services, LLC, has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in outside business activities without his firm’s knowledge, and made false attestations to his firm in reference to his business activities. Letter of Acceptance, Waiver and Consent, No. 2016052583401 (June 1, 2017).
According to the AWC, insurance contracts issued by companies unaffiliated with Allstate Financial Services had been sold to customers via Panetta, where he raked in $12,000.00 in commissions as a result of his sales efforts. Yet, Panetta reportedly failed to notify Allstate about the activities he engaged in outside of the firm’s auspices, as well as the commissions he generated from his activities. FINRA found Panetta’s conduct in this regard to be violative of FINRA Rules 2010 and 3270.
Additionally, the AWC stated that annual compliance attestations were required by Allstate to be completed by Panetta concerning any outside business activities Panetta took part in. Panetta evidently communicated to his firm that he had not taken in compensation via outside business activities and was not involved in any outside business activities. Consequently, FINRA found Panetta’s false statements to be conduct violative of FINRA Rule 2010.
Panetta was terminated by Allstate Insurance Company on December 8, 2016, based upon allegations of his involvement in unapproved outside business activities.
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