Securities attorney wins long-running battle with Finra

A Financial Industry Regulatory Authority Inc. hearing panel has dismissed charges brought by Finra enforcers against Florida securities attorney Kevin Carreno, who claimed that charges brought against him in 2009 were intended to scuttle his pending appointment as Florida’s top regulator.
Mr. Carreno claimed Finra officials did not want to see him take over as commissioner of the Florida Office of Financial Regulation, due to a series of run-ins he had earlier with Finra staff in Florida. Those flaps, he claims, included a legal action he filed against several Finra officials when he was chief operating officer at the now-defunct Empire Financial Group Inc.
Finra enforcement officials in New York filed charges against Mr. Carreno in May 2009, alleging he should have had a financial operations principal license at Empire, and that he violated a restriction agreement by sending negative-consent letters to Empire clients.
The hearing panel dismissed the charges, saying the account-transfer letter was simply a “preparatory step” in transfering accounts prior to Empire’s shutdown, while still awaiting Finra approval for the transfers.
Furthermore, Mr. Carreno’s activities at Empire “did not demonstrate the responsibility and control over the firm’s financial reporting functions that is contemplated” in the rule requiring registration as a financial operations principal, the panel said in its January decision.
Under Finra’s procedures, the decision became final on March 6.
“I’m grateful the process works,” Mr. Carreno said. “The panel took time to consider all the evidence and rule in my favor.”
Finra spokeswoman Nancy Condon did not have an immediate comment.

Related Topics: Financial Industry Regulatory Authority