Selling Away, Fraudulent Private Securities Transactions FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
Frank Bianculli (CRD #5452027, Registered Representative, Plainview, New York) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Bianculli consented to the described sanction and to the entry of findings that he entered into an informal agreement with brokers at his member firm to share in commissions relating to undisclosed private securities transactions in an entity, which purported to advance cash to merchants in exchange for the merchants’ future credit card receivable; the entity promised returns of 4 percent or more per month, but it was a Ponzi scheme. The findings stated that Bianculli helped brokers with servicing a customer’s investment but failed to provide his firm with written notice of his involvement in an unapproved private securities transaction. The findings also stated that Bianculli provided false and misleading information to FINRA during sworn on-the-record testimony. The findings also included that Bianculli provided false and misleading statements to his firm in response to a compliance questionnaire distributed by the firm inquiring into the scheme. FINRA found that Bianculli denied meeting any of the owners or principals of the entity and failed to disclose his participation in the customer’s investment. (FINRA Case #2009016911202).