Broker Suspended by FINRA for Alleged Participation in Private Securities Transactions

David Philip Morabito (CRD #2799155, Mineola, New York)

was suspended by FINRA for six months for allegedly participating in private securities transactions with a private investment company and not providing notice of the transactions to his member firm, or obtaining written approval prior to participating in the transactions.

FINRA's findings stated that Morabito recommended firm customers to invest in a technology company through the private investment company. The customers have not received repayment of their loan, interest or any stock in the technology company.

FINRA's findings also stated that Morabito loaned one of his family members $25,000 to invest in the technology company. The family member held an account with Morabito's firm. Morabito failed to notify the firm of the loan or obtain the firm’s written approval to make the loan.

Also, FINRA's findings included that Morabito willfully failed to update his Form U4 to disclose a bankruptcy and lien.
The suspension is in effect from November 3, 2014, through May 2, 2015.
(FINRA Case #2013036871102)

David Morabito had been registered in the securities industry for 13 years and was previously registered with the following securities firm(s):

08/2013 - 02/2014 REGAL SECURITIES, INC. (CRD# 7297) - GLENVIEW, IL

02/2007 - 05/2013 OPPENHEIMER & CO. INC. (CRD# 249) - JERICHO, NY

11/1999 - 02/2007 JANNEY MONTGOMERY SCOTT LLC (CRD# 463) - MELVILLE, NY

This information from FINRA’s website under "Disciplinary and Other FINRA Actions, December 2014," ends here.

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