FINRA Arbitration Limited Partnership and Private Placement Fraud and Mismanagement Attorney, Russell L. Forkey, Esq.
John Brian Busacca III (CRD #2302780, Registered Principal, Orlando, Florida) was fined $30,000 and suspended from association with any FINRA member in any principal capacity for six months. The SEC sustained the sanctions following appeal of a National Adjudicatory Council (NAC) decision. The sanctions were based on findings that Busacca failed to reasonably supervise the firm’s operations system conversion and its operations activities to detect and/or prevent certain violations, including, but not limited to, inaccurate box counts, erroneous records of customer securities, failure to timely validate or take exception to transfer instructions, failure to make timely buy-ins, failure to timely liquidate unpaid-for customer securities positions in cash accounts in violation of Regulation T of the Federal Reserve Board, violation of margin requirements as prescribed by NASD Rule 2520(c), and failure to report data to FINRA. The findings stated that Busacca failed to reasonably supervise the firm’s operations considering his extensive travel and focus on business development despite his knowledge of the firm’s significant operational problems, the lack of adequate personnel in place to address the firm’s problems, and Busacca’s failure to diligently and promptly address all of the firm’s operational issues. The findings also stated that Busacca, acting on his member firm’s behalf as its president, employed an unregistered chief compliance officer.
This decision has been appealed to the United States Court of Appeals for the Eleventh Circuit, and the sanctions are not in effect pending consideration of the appeal. (FINRA Case #E072005017201)