Paul William Petrillo of Volo Illinois a stockbroker formerly registered with Thrivent Investment Management has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that (1) Petrillo effected securities transactions without having disclosed them to the securities broker dealer and procured authorization and (2) Petrillo lied to FINRA personnel during the time that he was investigated for impermissible trading in customer accounts held at outside institutions. Letter of Acceptance Waiver and Consent No. 2018058262001 (Jan. 17, 2020).
According to the AWC, from April 3, 2017 to April 20, 2018, no less than fourteen securities purchase or sale orders had been effected for at least two Thrivent Investment Management customers in accounts that they held outside of the securities broker dealer. Apparently, the details of those transactions in which Petrillo involved himself, including whether Petrillo stood to earn compensation, were not disclosed by him to the securities broker dealer. FINRA determined that Petrillo’s activities were violative of FINRA Rules 2010 and 3280.
Also, from August 1, 2013 to April 2, 2017, three hundred thirty-three trades were effected by Petrillo for twelve customers’ accounts held away from Thrivent Investment Management. The stockbroker neglected to tell Thrivent Investment Management about his activities in those accounts, and he concealed this from the outside securities broker dealer. FINRA determined that Petrillo’s trading away from Thrivent Investment Management was violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 3050.
FINRA additionally stated that in September of 2018, Petrillo was subject of a FINRA investigation concerning his trading activities. On September 19, 2018, Petrillo was instructed to disclose which outside accounts he effected trades in. During that time, he neglected to identify for the regulator at least eleven customer accounts which he impermissibly traded in. FINRA determined that Petrillo’s failure to be forthcoming in this respect constituted violations of FINRA Rules 2010 and 8210.
FINRA Public Disclosure additionally reveals that Petrillo is the subject of a customer initiated investment related written complaint which settled for $33,474.25 on March 23, 2018 based upon allegations that common and preferred stock trades were effected in the customer’s account by the stockbroker without the customer’s knowledge or consent.
Petrillo’s registration with Thrivent Investment Management has been terminated as of April 20, 2018.
