Frank John Capuano, of Holyoke, Massachusetts, a stockbroker with Royal Alliance Associates, Inc., was fined $10,000.00 and suspended for a year from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2015046273001 (Apr. 21, 2016).
According to the AWC, in 2014, while Capuano was associated with Royal Alliance, Capuano became apprised of Woodbridge Mortgage Investment Funds. Subsequently, from December 2014 through March 2015, Capuano reached out to nine of Royal Alliance’s customers in order to offer them investments in Woodbridge notes.
Royal Alliance’s customers apparently purchased an aggregate of $1,100,000.00 in the Woodbridge securities through Capuano. Thereafter, Capuano bought $55,000 worth of the Woodbridge notes. In connection with the aforementioned transactions, he made commission in excess of $34,000.00.
Apparently, Capuano had not sought out Royal Alliance’s authorization prior to his engagement in the private securities transactions. The AWC stated that his firm never received notification of Capuano’s transactions, and had not approved of them. FINRA found that Capuano violated FINRA Rules 3040 and FINRA Rule 2010 as a result of Capuano’s failure to gain the requisite written permission to participate in the Woodbridge notes transactions, leading to his suspension and fine.
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