FINRA Bars Ex-Fidelity Rep Who Refused to Testify
The broker was terminated for alleged personal trading and related conduct involving a penny stock.
The Financial Industry Regulatory Authority barred an ex-Fidelity broker from association with any FINRA member in any capacity after he refused to cooperate with the regulator’s investigation into his termination, according to FINRA.
Without admitting or denying the findings, Paolo Assumpcao Monaco signed a letter of acceptance, waiver and consent Feb. 13 in which he agreed to FINRA’s sanction. FINRA accepted the letter Wednesday.
Fidelity declined to comment Friday. Monaco registered with the regulator through his association with Fidelity on June 16, 2014, according to the letter.
Monaco was registered as a general securities representative at Fidelity until June 2018, when the firm filed a Form U5 terminating his registration based on “concerns about personal trading and related conduct involving a low-priced stock and about disregarding the firm’s warnings regarding” it, FINRA said.
The stock involved was identified as a penny stock in a FINRA BrokerCheck report.
Monaco later failed to cooperate with FINRA staff during the course of an investigation into the Form 5 termination disclosure, according to the FINRA AWC letter.
On Feb. 10, 2020, FINRA staff sent a request to Monaco for testimony, the regulator noted. However, three days later, during a phone call with FINRA staff, he acknowledged he received the testimony request, but did not intend to appear for on-the-record testimony at any time, FINRA said.
Through his actions, Monaco violated FINRA rules 8210 (governing the provision of information and testimony and inspection and copying of books) and 2010 (governing standards of commercial honor and principles of trade).
The broker did not join any other FINRA member firm after leaving Fidelity and is not currently registered as a broker, according to FINRA’s BrokerCheck website.
The BrokerCheck report also noted that, prior to working for Fidelity in Merrimack, New Hampshire, Monaco was self-employed in Sao Paulo, Brazil, from January 2010 until May 2014.
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