Glenn Nicholas Caruso of New York, NY, a Stockbroker with Tullett Prebon Financial Services LLC, was barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to findings that he failed to cooperate with FINRA in their investigation into Caruso’s alleged misconduct regarding municipal bond trading activity. Letter of Acceptance, Waiver and Consent, No. 20150463964-01 (Dec. 29, 2015).
According to the AWC, on April 20, 2015, the Fixed Income Investigations Team of FINRA’s Department of Market Regulation sent a letter to Caruso, pursuant Rule 8210, which requested that Caruso appear and provide on-the-record testimony on May 18, 2015, in order for FINRA to obtain information concerning certain municipal bonds trading activity engaged in by Caruso while he was working with Prebon Financial Services LLC.
The AWC also indicated that on April 22, 2015, Caruso had acknowledged receipt of FINRA’s requests. On April 23, 2015, Caruso and FINRA agreed that such testimony would be rescheduled. Following another request from FINRA on May 14, 2015, for the aforementioned testimony to take place, Caruso indicated on May 21, 2015, that he would not be attending the testimony on the scheduled day of June 9, 2015, or any point thereafter. FINRA found that by Caruso’s failure to provide testimony, he had violated Rule 8210 and 2010, leading to his permanent bar.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
FINRA Stockbrokers like Caruso who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Public disclosure records via FINRA’s BrokerCheck reveal that on January 21, 2014, Tullett Prebon Financial Services LLC discharged Caruso amid allegations that Caruso was found to have violated MSRB Rule G-43 (C)(1)(K), which prohibited a broker’s broker from giving preferential information to bidders in bid-wanted, including but not limited to, last looks, directions to a specific bidder that it should review it’s bid or that its bid is sticking out; along with MSRB G-43(C)(1)(N), which prohibited a broker’s broker from accepting a changed bid or a new bid from a bidder in the same bid-wanted after the broker’s broker has selectively informed that bidder whether its bid is the high bid being used in the bid-wanted.
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