FINRA requires employees of FINRA-member firms to disclose all outside business-related activities and all investments recommended to customers to the member firm. FINRA’s Department of Enforcement investigated Infante and found he participated in an unapproved outside business activity. Specifically, FINRA alleged Infante participated in an undisclosed private securities transaction “away” from Wells Fargo when he established a limited liability company in Florida known as IMonsters Machinery (IMonsters), a heavy machinery resale business.
FINRA alleged Infante solicited one of his customers to initiate two wire transfers from her Wells Fargo brokerage account in order to invest in the outside business. In total, the customer invested $24,000 in the heavy machinery business and received a $4,000 profit. Infante allegedly earned a $1,000 commission.
Based upon the foregoing misconduct, FINRA alleges Infante violated NASD Conduct Rules 3040 as well as FINRA Rules 2010 and 3270. For example, NASD Rule 3040 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 suffered investment damages investing with Infante while he worked for Wells Fargo, 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.