FINRA’s Department of Enforcement initiated an investigation into Cipolla’s alleged misconduct. FINRA specifically investigated whether Cipolla engaged in sales practice violations, including potentially using co-workers funds to purchase 4,000 shares of stock in an initial public offering, unsuitable investment recommendations to investors, and failure to disclose certain financial events to PFS. In connection with this investigation, FINRA sent Cipolla a request to provide documents and information pursuant to FINRA Rule 8210. According to FINRA, Cipolla failed to cooperate with the investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Cipolla 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, Cipolla failed to provide information 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 Cipolla while employed by PFS Investments, 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 or complete our free case evaluator.