Broker failed to disclose outside business practices and refused to provide testimony after a FINRA request
In July of 2015, FINRA’s Department of Enforcement filed a complaint against Florida-based financial advisor Valentino Infante and barred him from associating with any FINRA member firm. According to the allegations, they found that the broker refused to cooperate with request for testimony in connection with this investigation, and that he provided misleading and false information to a FINRA member firm such as failing to disclose his outside business practices to his employer, Wells Fargo, as well as engaging in selling away in violation of firm policies. Brokers have a responsibility to disclose certain information about their activities to a licensed firm they work with and to cooperate with any FINRA investigations, if necessary.
According to the complaint, Infante solicited one client to provide funding for a limited liability company known as IMonsters Machinery. The purpose of this company was to buy and resell tractors. Infante was the sole proprietor of this business, but he did not make this clear to the investor and he did not share this with his employing firm, Wells Fargo.
FINRA found that Infante also made false statements and material misrepresentations on the yearly compliance questionnaire Wells Fargo requires. He repeatedly checked the box ‘No’ when he was asked if he was engaged in any outside business activities in any way. This was not true, as Infante was the primary and only owner of IMonsters. Infante was registered with the Wells Fargo company between June of 2010 and August of 2013 and has not been associated with any FINRA member firms since he was terminated from Wells Fargo in 2013.
In 2012, Infante asked his client to sign an authorization letter to wire nearly $37,000 of the client’s funds to Infante in order to purchase a tractor that would later be resold through IMonsters. According to the complaint, Infante promised that the client would receive part of the profits once the tractor was sold. When the transaction completed in June of 2013, the client only received $25,000 from the original $36,800 invested.
If you have suffered investment losses as a result of misconduct by a financial advisor broker or brokerage firm, you may be able to pursue your losses through securities arbitration. To have your case reviewed by an experienced securities attorney, contact Silver Law Group today.