This information was obtained on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2013.”
Michael Antonio Zurita (CRD #1659844, Registered Principal, Orlando, Florida)
was suspended from association with any FINRA member in any principal capacity for six months. In light of Zurita’s financial status, no monetary sanction was imposed. Without admitting or denying the findings, Zurita consented to the described sanction and to the entry of findings that he failed to reasonably supervise the sale of unregistered shares of low-priced stock of issuers on behalf of customers. A registered representative effected the sale of the unregistered stocks and failed to conduct a searching inquiry to ensure the sales did not violate Section 5 of the Securities Act of 1933. The representative completed deposited securities request (DSR) forms and submitted them to Zurita for review. Zurita’s review process primarily involved ensuring the forms had been completed in full, and failed to ensure that the information was accurate, consistent and did not raise any red flags. Zurita relied on the representative to obtain all relevant information and documentation and determine on his own that the shares were registered or exempt from registration, so he failed to ensure the representative complied with the requirements of Section 5 and failed to reasonably supervise the sale of unregistered securities.
FINRA’s findings stated that as the president and CCO of his member firm, Zurita was responsible for developing and maintaining an adequate supervisory system as well as the firm’s WSPs to ensure compliance with applicable laws. Zurita failed to have procedures in place to prevent the sale of unregistered securities not exempt from registration, and would have identified which individuals were to perform each step of the review and approval process.
Additionally, FINRA’s findings stated that Zurita failed to establish an adequate supervisory system to ensure that unregistered securities were freely tradable. The system was inadequate because it simply required that a principal ensure a DSR form was completed in full, rather than investigate each transaction to determine the existence of any red flags.
The suspension is in effect from April 15, 2013, through October 14, 2013.
(FINRA Case #2009019534203)
FINRA’s BrokerCheck lists Michael Zurita as previously registered with FINRA at the following brokerage firms:
ORION TRADING, LLC
06/2004 – 11/2011
GREAT EASTERN SECURITIES, INC.
NEW YORK, NY
11/2002 – 07/2004
GROSSMAN & CO.
DIX HILLS, NY
01/1999 – 11/2000
This ends the information obtained on FINRA’s website.
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