Financial advisor sanctioned by FINRA for impersonating firm clients

On Behalf of | Sep 14, 2021 | FINRA Compliance

The Financial Industry Regulatory Authority is taking disciplinary action against financial advisor Kevin DeAngelis over alleged rule violations involving the impersonation of clients. DeAngelis submitted a Letter of Acceptance, Waiver and Consent (AWC) to settle the case.

Between 2011 and 2020, DeAngelis was registered as an Investment Company and Variable Contracts Products Representative, a General Securities Representative and a General Securities Principal through his association with Commonwealth Financial Network. According to FINRA, CFN filed a Form U5 in September 2020 stating that DeAngelis had been discharged for impersonating two of the firm’s clients on three telephone calls that were placed with an insurance company to obtain information about the customers’ existing variable annuity contracts. During the calls, regulators say he obtained information for one of the two customers, neither of whom had authorized DeAngelis to impersonate them.

FINRA said impersonating customers violates Rule 2010, the “catch all” rule which “requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.”

DeAngelis did not accept or deny FINRA’s findings, but did consent to sanctions of a $5,000 fine and a 15 business–day suspension from associating with any FINRA member in all capacities.

Submission of the AWC is voluntary and does not resolve the matter until it has been reviewed and accepted by the National Adjudicatory Council, a Review Subcommittee of the NAC, or the Office of Disciplinary Affairs, under FINRA Rule 9216.

If accepted, the AWC becomes part of DeAngelis’s permanent disciplinary record and may be considered in any future action brought by FINRA or any other regulator against him.

Lewitas Hyman represents financial professionals, financial institutions and investors in investment loss, employment and disclosure matters, and in regulatory investigations. Contact us by phone at (888) 655 6002 or through our online contact form for a free consultation.

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