Johan Manuel Pereira, of Beverly, Massachusetts, a stockbroker formerly registered with Wells Fargo Clearing Services LLC, has been fined $10,000.00 and suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that he engaged in undisclosed outside business activities relating to Bitcoin. Letter of Acceptance, Waiver, and Consent No. 2020065633902 (December 10, 2021).

According to the AWC, when Pereira was registered with Wells Fargo Clearing Services, he sought and received authorization to engage in an outside business activity where he would be compensated. Wells Fargo was told that in this outside business activity, Pereira would not be advising anyone on investments, financing, or any form of financial planning. Pereira’s outside business activity was approved for this reason.

The AWC states that Pereira’s activities were not consistent with what he represented to Wells Fargo. Pereira helped one of his customers with buying Bitcoin. Pereira’s involvement with Bitcoin transactions was not disclosed to the securities broker dealer, which meant that Pereira exceeded the scope of his allowable outside activities, violating FINRA Rules 2010 and 3270.

The AWC states that Pereira also failed to timely respond to FINRA’s requests when he was investigated for his activities. In May 2020, Pereira was asked by FINRA to provide information and documents concerning his outside business activity. He was warned of being suspended by the regulator for potentially failing to comply. Pereira eventually cooperated before the regulator imposed the suspension.

The AWC states that more information was requested by FINRA between February and March of 2021. Pereira only provided FINRA with written responses. He did not provide the documents that FINRA sought. He failed to supply these documents after the regulator notified him about this in July of 2021. The regulator states that Pereira’s failure to timely respond to its requests showed that he violated FINRA Rules 2010 and 8210.

Pereira was employed by Wells Fargo Clearing Services between December 19, 2017, and February 20, 2020.

Tags: ,

Comments are closed.