FINRA Suspends Simone Garofalo

Simone Garofalo (CRD #: 7025823), a broker formerly registered with Cambridge International Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on October 22, 2024. If you want to know more about his alleged conduct as a broker, read on.

Suspension by FINRA

On September 5, 2024, Simone Garofalo consented to the entry of findings that he allegedly engaged in securities activities without the required registration while registered with FINRA as a foreign associate.

A Letter of Acceptance, Waiver & Consent (AWC) alleges that, between September 2020 and August 2022, Simone Garofalo communicated with and on behalf of individuals in the U.S. to discuss securities transactions. He also allegedly earned a commission through Cambridge International Securities by facilitating a private secondary securities transaction between two U.S. investors, including by transmitting documents between them via two other U.S.-based broker-dealers.

The AWC further alleges that, between June and August 2022, Simone Garofalo introduced a seller of a specific private company’s shares to an investor, and also facilitated the exchange of documents and information between them via other brokerage firms.

In July 2022, the investor allegedly wired $2.5 million with the intention of buying shares from this seller, unaware that the seller did not own them. According to the AWC, the investor was allegedly informed of this circumstance by another firm and had their funds returned.

The AWC alleges that Simone Garofalo violated FINRA Rules 1210 and 2010.

FINRA Rule 1210

FINRA Rule 1210 requires individuals who engage in securities transactions in relation to a FINRA member must also be registered with FINRA. This rule also disallows foreign associates from engaging in securities transactions in the U.S.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of many other rules may also qualify as violations of FINRA Rule 2010.

Sanctions

Simone Garofalo consented to the following sanctions:

• Two-month suspension from FINRA
• $5,000 deferred fine

His suspension began on September 16, 2024, and will end on November 15, 2024. You can access the AWC here.

Background Information

He previously worked for Cambridge International Securities (CRD#:39137).

Kurta Law Can Help

If you worked with Simone Garofalo and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.