FINRA’s Department of Enforcement initiated an investigation into Marrone’s alleged misconduct. Specifically, FINRA attempted to investigate whether Marrone engaged in unauthorized trading and the use of discretion without written authorization in client accounts. Under federal securities laws and FINRA rules, it is illegal to execute unauthorized trades in a customer’s account.
In connection with this investigation, FINRA sent Marrone a request to appear and provide testimony at FINRA’s offices on June 26, 2015. According to FINRA, Marrone acknowledged receipt of FINRA’s Rule 8210 request; yet, he failed to cooperate with FINRA’s investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Marrone violated FINRA Rules 2010 and 8210. Specifically, FINRA Rule 8210 authorizes FINRA, in the course of its investigations, to require persons associated with a FINRA member to “provide information orally, in writing, or electronically . . . with respect to any matter involved in the investigation...” Here, Marrone failed to provide testimony in response to FINRA’s request, thereby violating FINRA Rule 8210.
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 suffered investment damages with Marrone while Morgan Stanley employed him as a general securities representative, 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.