The Financial Industry Regulatory Authority (“FINRA”) announced August 8, 2019 that it barred Arive Capital Markets securities broker, Lisa Acca (CRD#: 4661358, Bay Ridge, New York) for stonewalling a FINRA investigation. Apparently, the investigation concerned Acca’s potential private securities transactions with an Arive client. Evidently, the general securities representative, who worked for Arive Capital Markets from April 2015 to October 2017, consented to FINRA’s sanctions by executing a Letter of Acceptance, Waiver and Consent (“AWC”) on July 25, 2019. Here’s more on the matter:
FINRA Investigates Lisa Acca For Private Securities Transactions
FINRA has the power to investigate securities brokers pursuant to Rule 8210. Mainly, FINRA can demand that a stockbroker testify or produce documents for FINRA. Stockbrokers who do not comply with FINRA’s requests typically face severe sanctions – most commonly a bar from the securities industry.
It appears that FINRA tried to determine if Lisa Acca broke FINRA Rule 3280. Rule 8320 generally calls for securities representatives to notify their employer about proposed private securities transactions. Significantly, securities representatives cannot engage in private securities transactions (also known as “selling away”) unless the employer learns about the proposed securities transactions and authorizes the representative’s activities. It is possible Acca facilitated a securities transaction with an Arive client behind the firm’s back.
FINRA says it sent Acca a Request for Information pursuant to Rule 8210. Apparently, Lisa Acca had until May 21, 2019 to produce documents and information in response to allegations of her private securities transactions with the Arive client. Not only that, but FINRA asked Acca to testify in regards to the allegations made against her. Evidently, Acca was supposed to testify June 11, 2019.
Acca Refuses To Produce Information For FINRA Regarding Her Alleged Private Securities Transactions
The AWC shows that Lisa Acca hired an attorney who told FINRA that Acca refused to honor FINRA’s requests. Specifically, FINRA learned that Acca would not testify or give any documents to FINRA. Therefore, Acca violated FINRA Rule 8210. Not only that, but FINRA found Acca violated FINRA Rule 2010, which mandates securities brokers to observe honorable and ethical standards. For this reason, Acca is no longer allowed to associate with brokers or investment advisories.
Clients Files Disputes Suggesting Lisa Acca Sold Unsuitable And Misrepresented Products
Investors brought disputes about Lisa Acca from July 2010 to December 2013. Three of those disputes come from AXA Advisors, LLC clients, while 1 comes from an Equity Services, Inc. client. Allegedly Acca acted negligently and failed to comply with his fiduciary responsibility to an Equity Services Inc. client. Also, 1 or more AXA Advisors clients suggested that Acca sold misrepresented and unsuitable investments which caused losses. Indeed, AXA Advisors, LLC paid at least one client to settle allegations of Acca selling a bad annuity to the client. FINRA BrokerCheck reports that the other disputes closed without a resolution.
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