Finra has barred a former First Standard Financial Company representative accused of making more than $1 million for himself and the firm through excessive and unauthorized trading, the industry’s self-regulator says.
First Standard said in a Form U5 that it permitted Philip Joseph Sparacino to resign on Oct. 14, 2019, following an order by the New Jersey Bureau of Securities that revoked his license, according to a letter of acceptance, waiver and consent published by Finra.
Last month, the bureau revoked First Standard’s registration as a broker-dealer, accusing the firm and its agents of generating more than $28.7 million through excessive, unsuitable and unauthorized trading at the cost of its clients. In October, the bureau ordered Sparacino — the last producing agent at First Standard — to pay $250,000 in civil penalties over allegations that he had defrauded clients through excessive, unsuitable trading that earned him and First Standard more than $1.4 million in fees and commissions, according to a news release from the Office of the New Jersey Attorney General.
Earlier this year, Finra also began investigating Sparacino over allegations of unauthorized, excessive and unsuitable trading while he was at First Standard, the regulator says.
Through his counsel, however, Sparacino said he would not provide documents and information requested by Finra, for which the regulator barred him from the industry, according to the letter of acceptance.
Sparacino agreed to the bar without admitting or denying the regulator’s findings, Finra says.