Michael G. Ferrera of Beverly Hills, California, a stockbroker formerly registered with SagePoint Financial Inc., has been fined $15,000.00 and suspended for two years from associating with any FINRA member in any capacity based upon allegations that Ferrera engaged in an outside business activity. Letter of Acceptance Waiver and Consent No. 2019063639201 (Sept. 1, 2022).
According to the AWC, in July 2019, Ferrera participated in an outside business activity where he engaged in estate management services for a recently widowed, elderly SagePoint Financial Inc. customer. Ferrera’s services included house maintenance, lawn care, and personal organization. He received $20,000.00 from the customer for these services. But Ferrera failed to inform SagePoint Financial Inc. of this activity and did not obtain prior written authorization. Therefore, Ferrera violated FINRA Rules 2010 and 3270.
Ferrera was also found by FINRA to have made false and misleading statements concerning his outside business activities. When asked by his supervisors about the outside business activity, Ferrera claimed that he had an established business where he provided estate management services. The AWC states that the Sagepoint customer was actually Ferrera’s first and sole estate management customer. Ferrera also made false statements regarding his compensation and reiterated false statements on the securities broker dealer’s outside business activity disclosure form. FINRA found that Ferrera violated FINRA Rule 2010.
SagePoint Financial Inc. terminated Ferrera’s registration based upon allegations that he failed to disclose an outside business activity. From 2005 to 2020, Ferrera was associated with Sagepoint Financial Inc. From 2020 to 2022, he was associated with Independent Financial Group LLC.
