Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Nicholas Palumbo from the securities industry. Mr. Palumbo was expelled from the brokerage industry after refusing to cooperate with a FINRA investigation into allegations related to his termination from Park Avenue Securities LLC. Mr. Palumbo was associated with Park Avenue Securities LLC from May 1999 until he was “permitted to resign” in May 2020 over allegations that he engaged in undisclosed private securities transactions.
If you have lost money with broker Nicholas Palumbo or Park Avenue Securities LLC, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Letter of Acceptance, Waiver, and Consent No. 2020066651001
Nicholas R. Palumbo and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on June 2, 2021, after Mr. Palumbo refused to provide documents and information connected with FINRA’s investigation into whether Mr. Palumbo participated in an undisclosed private securities transaction and his involvement in outside business activities.
On April 27, 2021, in connection with FINRA’s investigation, FINRA sent a request to Mr. Palumbo for the production of information and documents pursuant to FINRA Rule 8210. On April 27, 2021, Mr. Palumbo, through his attorney, stated in an email that he would not produce the information and documents requested.
By refusing to cooperate with FINRA’s investigation, Mr. Palumbo violated FINRA Rules 8210 and 2010. Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.
Park Avenue Securities LLC: A Duty to Supervise
Financial institutions like Park Avenue Securities LLC must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Losses or Obtain a Free Consultation
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
If you have lost money with Nicholas Palumbo or Park Avenue Securities LLC, contact New York securities arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your legal rights.