RAIG ZABALA Barred By FINRA
The Financial Industry Regulatory Authority (“FINRA”) announced that it barred John W. Loofbourrow Associates broker Craig Zabala (CRD#: 2740680, New York, New York). Apparently, Zabala, who worked for John W. Loofbourrow Associates from February 7, 2015 to April 29, 2019 in the capacity of an investment banking representative, operations professional, and general securities representative, executed an Acceptance, Waiver and Consent (“AWC”) on August 19, 2019, which FINRA accepted August 27, 2019. That AWC, summarized below, alleges Zabala violated FINRA rules for non-cooperation while under investigation for selling away. Here’s more on the AWC:
FINRA Investigates Craig Zabala For Private Securities Transactions
FINRA has the power to investigate securities brokers pursuant to Rule 8210. Mainly, FINRA can demand that a broker testify or supply documents especially when the investigation concerns the broker. The securities brokers who decide not to comply with FINRA’s requests often face the most severe sanctions – a bar from the securities industry.
It appears that FINRA tried to determine if Zabala engaged in private securities transactions in violation of FINRA Rule 3280. Notably, Rule 3280 calls for brokers to notify their employer about the broker’s planned private securities transactions. Also, 3280 prohibits brokers from taking on private securities transactions (a/k/a “selling away”) unless the employing securities firm first learns about the proposed transactions and authorizes them. It is possible that Zabala was involved in a securities transaction with a John W. Loofbourrow client without telling the firm.
Zabala Fails To Provide Documents To FINRA
The AWC’s findings show that Zabala violated FINRA Rules 8210 and 2010 for failing to respond to a FINRA request when under investigation. FINRA sent Zabala a letter on May 17, 2019 asking for his information and documentation regarding outside business activities and private securities transactions. It appears that FINRA allowed him to respond by June 14, 2019. Apparently, Zabala’s initial response to FINRA was unsatisfactory. Subsequently, Zabala’s attorney told FINRA that Zabala would unlikely supplement his response. For this reason, FINRA barred Zabala.
Losses From Craig Zabala?
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