Gerard F. Cipolla, of Rego Park, New York, a registered representative with PFS Investments Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of Cipolla’s unsuitable investment recommendations. Letter of Acceptance, Waiver and Consent, No. 2015046712301 (Sept. 12, 2016).
According to the AWC, on August 26, 2015, FINRA began to investigate allegations of Cipolla’s conversion of four thousand IPO shares from staff members that he worked with, several complaints lodged by customers against Cipolla for making investment recommendations that were not suitable, and allegations against Cipolla for failing to disclose information to PFS his financial matters.
Apparently, Cipolla was sent two letters by FINRA in August and November of 2015, in which FINRA requested that Cipolla provide information and documentation, per FINRA Rule 8210. The AWC stated that Cipolla provided a response to FINRA through his counsel, in which only partial information was provided to FINRA. Particularly, FINRA claimed that Cipolla did not provide bank statements that were requested.
The AWC reported that Cipolla’s counsel received another request from FINRA, on June 24, 2016, in which a request was made for Cipolla to provide, inter alia, the aforementioned bank statements and other financial details by a July 8, 2016 deadline. Cipolla was reportedly informed, via the June 24 letter, that his failure to provide FINRA with the information and documentation could result in his permanent bar.
According to the AWC, Cipolla received an extension of time to provide FINRA with information. However, Cipolla’s counsel then contacted FINRA personnel on July 12, 2016, stating that Cipolla was not going to provide the requested information and documentation at any point, nor would Cipolla provide further cooperation with FINRA. The AWC stated that Cipolla ultimately failed to cooperate in the FINRA investigation, which resulted in FINRA finding that he violated FINRA Rules 8210 and 2010.
Public disclosure records reveal that Cipolla has been subject to nine disclosure incidents, two of which involve customer disputes. Particularly, on December 18, 2014, Cipolla settled a customer dispute for $54,556.00, after his co-workers lodged a complaint against him regarding his failure to provide them with funds associated with IPO shares that Cipolla facilitated the purchase of.
On May 4, 2015, Cipolla settled a customer dispute for $45,000.00 after customers alleged that Cipolla misrepresented guarantees associated with fixed indexed annuities. The customers further alleged that Cipolla made unsuitable recommendations based on his recommendation for customers to switch their existing annuity products into mutual funds investments.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
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