Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Craig Zabala (Zabala), previously associated with John W. Loofbourrow Associates, INC., has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Zabala recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on February 24, 2021.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (‘Exchange Act’) and Section 203(f) of the Investment Advisers Act of 1940 (‘Advisers Act’) against Craig A. Zabala (‘Zabala’ or ‘Respondent’). The Commission finds that on February 3, 2021, a final judgment was entered by consent against Zabala, permanently enjoining him from future violations of Sections 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Zabala, et al., Civil Action Number 20-CV-7880, in the United States District Court for the Southern District of New York. The Commission’s complaint alleged that, in connection with the sale of senior notes and stock issued by Holdings, Zabala misrepresented the amount of funds that were raised by Holdings and also misappropriated investor funds for his personal use. On October 22, 2020, Zabala pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud in violation of 18 U.S.C. \\u00a7 371, before the United States District Court for the Southern District of New York, in United States v. Zabala, 20-cr-564 (S.D.N.Y). The one count to which Zabala pleaded guilty alleged that Zabala, and others known and unknown, willfully and knowingly conspired with each other to commit conspiracy to commit securities fraud and wire fraud.