The Financial Industry Regulatory Authority has suspended a rep for two months and ordered him to pay $7,500 for acting as a trustee to the estate of a deceased Cambridge customer without providing prior written notice to Cambridge or Osaic.
From January 2020 to September 2022, John Stephen Pronovost engaged in the outside business activity, violating FINRA Rules 3270 and 2010, the order states.
Between February 2008 and March 2021, Pronovost was registered with FINRA as a general securities rep and in other capacities, and between March 2010 and March 2021 as a general securities principal, through an association with Cambridge Investment Research.
Since February 2021, Pronovost has been registered, including as a general securities rep and general securities principal, through an association with Osaic Institutions.
Between January 2020 and September 2022, "Pronovost engaged in and was compensated for a business activity outside of the scope of his relationships with Cambridge and Osaic without providing prior written notice to the firms," the order states.
In January 2020, while he was associated with Cambridge, Pronovost became the trustee to the estate of a deceased Cambridge customer. He remained a trustee and served in that role until September 2022.
"In April 2022, while he was associated with Osaic, Pronovost was paid $20,000 for his work as a trustee," the order states, and he "did not disclose this business activity, which was outside the scope of his relationships with the firms, to Cambridge or Osaic."
To the contrary, in October 2020 and February 2021, "Pronovost completed questionnaires for Cambridge and Osaic, respectively, in which he attested that he had disclosed all of his outside business activities when, in fact, he had not disclosed his role as a trustee," according to the order.
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