Former Merrill Lynch broker, Alphonso Joseph Papa (Papa), recently settled allegations with the Financial Industry Regulatory Authority (FINRA) following an enforcement action. The underlying basis of the investigation involved Papa’s termination from Merrill Lynch. As a consequence of Papa’s failure to cooperate with FINRA’s investigation, FINRA permanently barred him from the financial industry.
Papa (FINRA CRD No. 6016829) entered the financial industry in 2012 as general securities representative. From 2012 to 2014, Papa worked for HFP Capital Markets LLC. From February 2014 to January 2016, Papa worked for Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”). Papa was terminated from Merrill Lynch in January 2016 with his FINRA CRD stating the reason for termination: “Loss of management's confidence as a result of conduct related to personal bank accounts.” Papa is no longer associated with any FINRA-member.
FINRA’s Department of Enforcement initiated an investigation into Papa’s alleged misconduct. In connection with this investigation, FINRA sent Papa a request to provide on-the-record testimony pursuant to FINRA Rule 8210. On September 13, 2016, FINRA sent Papa another discovery request seeking Papa to provide additional documents and information relating to his termination. According to FINRA, Papa failed to cooperate with the investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Papa 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, Papa 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 Papa while employed by Merrill Lynch, 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.