Joel Benanti, of Hauppage, New York, a stockbroker formerly registered with Network 1 Financial Securities has been named in an Enforcement Investigation by the Financial Industry Regulatory Authority for engaging in undisclosed outside business activities and private securities transactions. Disciplinary Proceeding (No. 2025087193401)
FINRA sought information and documents related to, among other things, Benanti’s outside business activities, investment products and services he offered away from Network 1, and his bank and investment account statements. However, it alleges that Benanti refused to provide information and documents requested by FINRA as part of its investigation into whether he “participated in undisclosed outside business activities and private securities transactions away from his employer member firm” in violation of FINRA rules.
Selling away, also known as private securities transactions, or undisclosed outside business activities occurs when a stockbroker engages or participates in the sale of securities to investors outside of the formal approval of the securities firm with whom they are associated.
As a general matter, stockbrokers are only permitted to engage in the solicitation or sale of investments and investment related products approved by their firm. However, quite frequently, stockbrokers solicit, participate, or directly engage in the sale of typically unregistered securities or investments without the approval and outside of the auspices of their firm. These investments may take on many forms, and may include the recommendation of an outside money manager, or a hedge fund, which may sometimes turn out to be a Ponzi scheme. Sometimes these outside investments may include off-shore securities, insurance trusts, stocks or ownership interests in small businesses, startup ventures, corporate debentures, mortgage notes, private placements, promissory notes, oil & gas interests, real estate partnerships, pre-IPO shares, and a variety of other investments.
FINRA Public Disclosure shows that Benanti to approximately ten (10) customer intiated investment related customer complaints and FINRA arbitration proceedings since 2011.
FINRA Public Disclosure also shows that of the nine (9) brokerage firms with whom Benanti has been associated seven (7) have been barred by FINRA for the violation of the federal securities laws or self-regulatory rules, or are otherwise defunct.
The Guiliano Law Group, P.C.
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