Ronald Ernest Filoramo (also known as Ron Ernest Filoramo), of Fort Lauderdale, Florida, a stockbroker previously registered with Morgan Stanley, has been barred as a stockbroker and investment adviser representative by Securities and Exchange Commission (SEC) because Filoramo misappropriated customer funds. In the Matter of Ronald E. Filoramo, Order Instituting Administrative Proceedings, Case No. 3-21781 (October 11, 2023).
The central claim in SEC’s case was the misappropriation of approximately $761,000.00 from two long-standing securities broker dealer customers. This misappropriation allegedly occurred between February of 2017 and October of 2021. Filoramo purportedly falsely promised to invest customers’ funds in recommended securities and directed those customers to buy bonds from a supposed customer of his. Instead of fulfilling his investment promises, SEC claims that he converted these funds for personal use, predominantly to fund his gambling activities and related expenses.
To carry out this deceit, the regulator contended that Filoramo orchestrated a complex scheme involving the creation of fraudulent documents. SEC claimed that these documents falsely represented bond purchases. In reality, the customers’ funds were apparently funneled into bank accounts controlled by an associate of Filoramo, who then transferred them to an account under Filoramo’s control. This alleged ruse resulted in no actual bond purchases, with Filoramo ultimately squandering nearly the entire amount in casinos.
The United States District Court for the Southern District of Florida, recognizing the severity of Filoramo’s actions, imposed a permanent injunction against him, prohibiting future violations of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and Securities Act of 1933 Section 17(a). Civil Action Number 0:23-cv-61858 (October 2, 2023).
Ultimately, SEC imposed an Order on October 11, 2023, barring Filoramo.
Also, on September 18, 2023, Filoramo was barred from associating with any FINRA member in any capacity for obstructing an investigation. Letter of Acceptance, Waiver, and Consent, No. 2023078603801. This decision followed an investigation into Filoramo’s conduct during the time that he was associated with Morgan Stanley. Filoramo failed to provide documents and information requested by the regulator when it investigated allegations that he fraudulently induced customers to transfer funds to purported investments that were never actualized. Filoramo violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure also shows that a customer initiated a complaint against Filoramo, alleging financial misconduct during his tenure at Morgan Stanley. The complaint, filed on March 30, 2023, accused Filoramo of fraudulently inducing the customer to transfer approximately $335,850.00 to what were purported as external investments, which reportedly never materialized. These alleged actions occurred between 2014 and 2019.
On April 14, 2023, another customer filed an investment related complaint involving Filoramo’s conduct in which the customer requested $290,000.00 in damages based upon allegations that Filoramo fraudulently induced her to transfer funds to purported outside investments that were never made.
Filoramo is also referenced in a customer initiated investment related complaint filed on April 14, 2023, in which the customer requested $172,133.75 in damages based upon allegations that the customer was defrauded. On September 21, 2023, a different customer initiated investment related complaint involving Filoramo’s conduct was settled for $61,443.90 in damages based upon alleged fraudulent inducement by the stockbroker at Morgan Stanley.
Filoramo was associated with Morgan Stanley in Fort Lauderdale, Florida from April 29, 2011, to May 31, 2023.
