The Financial Industry Regulatory Authority (FINRA) requires employees of FINRA-member firms to disclose all outside business-related activities to the member firm. FINRA’s Department of Enforcement investigated Juliano and found he recommended seven fixed annuities to five different customers in the amount of $1,321,000. These investments were made through an entity that was unaffiliated with Aegis Capital. According to FINRA, Juliano received a total of approximately $81,900 in commissions from the sale of of the aforementioned fixed annuities.
Based upon the foregoing misconduct, FINRA alleges Juliano violated NASD Conduct Rule 3030 and FINRA Rules 3270 and 2010. For example, FINRA alleges Juliano violated FINRA Rule 3270 (formerly NASD Rule 3040), which states no FINRA registered person may be an employee or receive compensation for outside business transactions unless he or she has provided prior written notice to their employer. Outside business transactions and selling away are prohibited activities because they serve to undercut the supervisory system implemented by FINRA-member firms and FINRA itself to protect the investing public.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing in fixed annuities through Juliano or Aegis Capital, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.