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Red Bank Broker Philip Sparacino Barred, Fined $250,000
Former First Standard Financial Company broker Philip Sparacino (CRD# 3243960) was the subject of a recent FINRA sanction barring him in connection to allegations he engaged in excessive, unauthorized, and unsuitable trading. Sparacino was registered with the firm’s branch office in Red Bank, New Jersey.
According to a Letter of Acceptance, Waiver and Consent (No. 2019063631801) dated November 2019, Philip Sparacino initially became registered with FINRA in June 2007. He was registered as a Corporate Securities Representative with First Standard Financial Company beginning in July 2014, and became registered as a Registered Options Representative with the firm in January 2015. The firm filed notice in October 2019 that he had been “permitted to resign” following an order by New Jersey securities authorities that revoked his registration. The AWC Letter goes on to state that in 2019, FINRA launched an investigation into allegations that he “engaged in unauthorized, excessive, and unsuitable trading” while registered with the firm. As part of this investigation, FINRA sent him a request to produce information and documents pursuant to FINRA Rule 8210, which authorizes FINRA to require such. According to FINRA, Sparacino informed FINRA via an email from his counsel that he had received the request, but he would not produce the documents and information which FINRA requested. FINRA found that this refusal violated FINRA Rules 8210 and 2010. As a result of the foregoing alleged conduct, he was barred from associating with any FINRA member in any capacity.
According to his BrokerCheck report, he was also the subject of a 2019 sanction by the New Jersey Bureau of Securities. That action was connected to allegations that he engaged in “a device, scheme, or artifice to defraud,” that he made untrue statements, and engaged in “an act, practice, or course of business which operates or would operate as a fraud or deceit.” The Bureau alleged that since June 2019, he participated in a “pattern” of excessive, unsuitable, and unauthorized trading, as well as fraudulent trading, in the accounts of First Standard Financial customers, using access to “dozens of newly inherited customer accounts” following the departure of “many” firm representatives, and he allegedly used these accounts “as a vehicle to generate exorbitant commissions at the customers’ expense.” In connection to these allegations, the Bureau revoked his registration and issued him a fine of $250,000.
Philip Sparacino is currently not registered with any FINRA member firm. His registration history includes First Standard Financial Company, Alexander Capital, Brookstone Securities, Mercer Capital, Newbridge Securities Corporation, and Investors Capital Corporation. He has passed four securities industry qualifying examinations and currently holds no state securities licenses. (Information current as of April 23, 2020.)