South Florida Arbitration & Litigation Lawyer Blog
FINRA Arbitration Investment Fraud and Mismanagement Attorney, Russell L. Forkey, Esq.
February, 2011:
David Scott Isolano (CRD #2504880, Registered Principal, Lackawaxen, Pennsylvania) submitted an Offer of Settlement in which he was fined $40,000 and suspended from association with any FINRA member in any capacity for five months and immediately thereafter suspended from association with any FINRA member in any principal capacity for one month. Without admitting or denying the allegations, Isolano consented to the described sanctions and to the entry of findings that his member firm willfully charged excessive and fraudulent markups to customers in connection with their purchase of penny stocks, and Isolano was personally responsible for failing to enforce the firm’s supervisory procedures and was directly liable for the firm’s fraudulent and excessive markups. The findings stated that Isolano engaged in a fraudulent markup scheme in connection with customers’ transactions with the purchase or sale of a security. The findings also stated that Isolano, as his member firm’s CEO, failed to reasonably enforce its supervisory procedures concerning markups and proprietary trading. The findings also included that Isolano knew a markup was assessed on customer transactions and failed to take steps to ensure the markup was fair and reasonable or in compliance with the firm’s supervisory procedures.
The suspension in any capacity is in effect from January 3, 2011, through June 2, 2011, and the suspension in any principal capacity will be in effect from June 3, 2011, through July 2, 2011. (FINRA Case #2007007253803)