The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against John P. Correnti (Correnti), working out of Cleveland, Ohio. Correnti allegedly failed to provide FINRA staff with information and documents related to an investigation into claims that Correnti engaged in undisclosed outside business activities. The failure to provide those documents and information to FINRA resulted in an automatic bar from the industry.
Correnti began his securities career in 2007. From 2007 until 2015, Correnti was associated with MVP Financial. He moved to Forest Securities in 2015 and was with them for less than a year. Finally, he moved to AXA Advisors where he was terminated in less than a year.
According to BrokerCheck records, Correnti was terminated by AXA Advisors in July 2016 “due to his apparent involvement in the possible market manipulation of a low price security.”
According to InvestmentNews, Correnti was permanently barred by FINRA from the securities industry in August 2017. FINRA was investigating Correnti for allegedly engaging in undisclosed outside business activities and committing other violations of FINRA Rules and federal securities laws. Without admitting or denying the findings, Correnti consented to the sanctions and the entry of findings that he failed to provide complete responses to FINRA’s requests for documents and information and provided incomplete on-the-record testimony in connection with the investigation.
Brokerage firms like AXA Advisors owe a duty to all of its customers to properly monitor and supervise its employees. The duty to supervise is a critical component of the securities regulatory scheme. Regulatory authorities such as the SEC and FINRA have steadily heightened the supervisory obligations of brokerage firms in recent years. Supervisors have an obligation to respond vigorously to indications of irregularity, often times referred to as “red flags.” A supervisor cannot disregard red flags and must act decisively and specifically to prevent improper conduct by their brokers. The importance of proper supervision is manifested in various types of securities activities. Brokerage firms are responsible for monitoring a broker’s investment recommendations to clients, outside business activities, and representations to investors among other obligations. In addition, brokerage firms are responsible for conducting due diligence on the securities products they sell and devising a written supervisory system to achieve compliance with the securities laws.
Investors who have suffered losses may be able to recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors who have suffered securities losses due to the mishandling of their accounts. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if we are able to successfully recover on your behalf.