The Financial Industry Regulatory Authority (FINRA) brought an enforcement action against registered representative Zena Yofonovich (Yofonovich) (FINRA No. 2016052247401). The underlying basis of the enforcement action concerned allegations Yofonovich borrowed funds from an elderly client without disclosing the loans to her employer. As a result of the undisclosed personal loans, FINRA suspended Yofonovich for two (2) months from the financial industry.
Yofonovich (FINRA CRD No. 1358792) entered the securities industry in 1985 as a general securities representative. From 1990 until her termination in November 2016, Yofonovich worked for Pruco Securities, LLC (“Pruco”). Yofonovich is no longer associated with any FINRA-member; however, she remains subject to FINRA’s jurisdiction.
FINRA’s Department of Enforcement investigated Yofonovich and alleged she borrowed $63,500 from an elderly client. According to FINRA, Yofonovich obtained the funds from the customer’s variable annuity that was held with Pruco. FINRA also alleged Yofonovich failed to notify anyone at Pruco about the loans/borrowed funds, and she did not seek written approval before borrowing funds from the customer.
FINRA alleged Yofonovich violated several FINRA rules and regulations, including NASD Rule 2370 and FINRA Rules 2110 and 2010. NASD Rule 2370 prohibits registered persons from borrowing money from or lending money to any customer certain conditions and/or exceptions are satisfied, such as whether the financial advisor obtains pre-approval in writing. A violation of NASD Rule 2370 also constitutes a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principals of trade.
Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.