FINRA Suspends Ex-CEO From Shuttered BD First Standard
The former CEO must pass the Series 24 exam again before he could serve as a principal for any FINRA member.
The Financial Industry Regulatory Authority sanctioned yet another former associate of First Standard Financial — this time an ex-CEO of the Red Bank, New Jersey-based broker-dealer whose license was canceled by FINRA.
The former executive, in his capacity as the firm’s Anti-Money Laundering Compliance Officer, “failed to establish and implement an anti-money laundering … compliance program reasonably designed to detect and cause the reporting of potentially suspicious activity relating to transactions involving the deposit and liquidation of low-priced securities,” the regulator claimed.
Without admitting or denying the findings, Michael N. Catoggio signed a letter of acceptance, waiver and consent on April 13 in which he agreed to be suspended from associating with any FINRA member firm in any principal capacity, for two months and pay a $5,000 fine.
He also agreed that, to requalify as a General Securities Principal, he must once again pass the Series 24 examination prior to acting in that capacity with any FINRA member, according to FINRA, which accepted the letter on Monday.
Timothy Feil, a partner at New York law firm Carmel, Milazzo & Feil, which represented Catoggio, did not immediately respond to a request for comment Monday.
Several reps at First Standard were previously sanctioned by FINRA for excessive trading.