The Financial Industry Regulatory Authority has suspended a former Citigroup rep and fined him $5,000 for participating in undisclosed outside business activities and investments.
According to FINRA's order, Maximiliano Ramirez became registered in May 2022 as a general securities representative through an association with Citigroup Global Markets Inc. and was concurrently registered with Citi Private Advisory.
On Sept. 29, 2023, Citigroup filed a Form U5 for both firms, reporting that Ramirez had resigned effective Aug. 31, 2023, while under review for violations of CGMI’s policies regarding undisclosed outside business activities and investments.
From May 2022 to August 2023, Ramirez was a member and 50% owner of an insurance agency that was organized as a limited liability company, according to the order.
During this period, FINRA states that he participated in the business by, among other things:
- designing and running the social media advertising program that helped generate the agency’s business;
- serving as an agent of record for a portion of the agency’s insurance production; and
- signing the agency’s 2023 tax return as its representative.
"During this time, the agency earned significant revenue, and Ramirez received direct compensation of approximately $60,000," the order states. "Ramirez failed to disclose to the firm his involvement with the agency until March 2023, and the firm subsequently denied him permission to participate."
Nevertheless, "Ramirez continued the activity until his resignation in August 2023," FINRA said, violating FINRA Rules 3270 and 2010.
Ramirez consented to a two-month suspension from associating with any FINRA member in all capacities and a $5,000 fine.
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