Sign of the Financial Industry Regulatory Authority

William A. Fochi Jr. (also known as Bill Fochi Jr.) of Glastonbury Connecticut a stockbroker formerly registered with Northwestern Mutual Investment Services LLC has been fined $10,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that he engaged in outside business activities without having notified Northwestern Mutual. Letter of Acceptance Waiver and Consent No. 2020066000901 (October 6, 2021).

According to the AWC, between March of 2012 and December of 2019, Fochi was required to comply with Northwestern Mutual’s supervisory procedures related to outside business activities. He was prohibited from engaging in certain activities unless he sought authorization and received approval following the securities broker dealer’s review of those activities. Northwestern Mutual also had written supervisory procedures which disallowed any promotions, sales, recommendations, and solicitations of equity indexed annuities. Employees were forbidden from making referrals of these products in exchange for compensation.

Fochi failed to comply with Northwestern’s policy. In April of 2005, he was permitted by Northwestern Mutual to sell insurance products. But this approval did not extend to equity indexed annuities. Between March of 2012 and December of 2019, at least nine of Fochi’s customers at Northwestern purchased equity indexed annuities through him. The regulator indicated that Fochi made $3,900,000.00 in sales away from the firm. Fochi listed his wife as the selling agent for these products despite him being the only one to have discussed the products with the customers and arranged their purchases. FINRA states that Fochi and his spouse collectively received between $350,000.00 and $400,000.00 in commissions.

The AWC also states that from 2012 to 2019, Fochi was issued compliance questionnaires regarding outside business activities and EIA sales. He falsified those compliance questionnaires regarding his outside business activities and his equity indexed annuity sales. He violated FINRA Rules 2010 and 3270.

This is not the first time that Fochi has been sanctioned. He was fined $3,000.00 by Connecticut Insurance Department founded upon allegations that he misrepresented an annuity document.

FINRA Public Disclosure also shows that on December 7, 2020, a customer filed an investment related complaint concerning Fochi’s activities. The customer requested compensatory damages supported by accusations of misleading and fraudulent conduct by Fochi when he was associated with Northwestern Mutual Investment Services. According to the complaint, the customer was provided bad advice by Fochi regarding the purchase of $2,500,000.00 in fixed, variable, and equity indexed annuities between October of 2019 and December of 2019.

Fochi’s registration with Northwestern Mutual was terminated on February 17, 2020, supported by allegations that he solicited sales of products that Northwestern Mutual did not approve.