John Matthew Izzo of Williamsville New York a stockbroker formerly registered with Allstate Financial Services has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that Izzo engaged in outside business activities without permission and had falsified information in compliance questionnaires that he submitted to Allstate Financial Services. Letter of Acceptance Waiver and Consent No. 2021072190201 (Aug. 30, 2021).
According to the AWC, from February of 2015 to October of 2019, when Izzo was associated with Allstate Financial Services, he was required to comply with its procedures on outside business activities. Those procedures required him to get Allstate’s permission if he wanted to participate in activities away from the securities broker dealer. Allstate’s policies also required Izzo to state in compliance questionnaires whether he engaged in outside activities.
The regulator noted that Izzo created Elite Agency LLC in 2013. He partly owned this New York limited liability company. He then joined Allstate but failed to identify in 2015 that this was an insurance-based business activity. Izzo did not tell Allstate about the $250,000.00 that Elite Agency LLC compensated him for his involvement. FINRA noted that Izzo was involved in this company until Allstate terminated his registration in October of 2019.
The AWC stated that Izzo was required to report Elite Agency LLC to Allstate. He instead told the securities broker dealer on five different occasions that he was not compensated through firms that were not mentioned on his compliance questionnaires. FINRA found that Izzo’s 2015 to 2019 questionnaires contained omissions for this reason.
Izzo violated FINRA Rules 2010 and 3270 for his unauthorized outside business activities.
Izzo was registered with Allstate Financial Services between February 26, 2015 and October 2, 2019