Former Morgan Stanley rep barred by Finra for concealing Venezuelan bond trades
John Batista Bocchino hid $190 million in transactions, creating fake account firms and tickets
The Financial Industry Regulatory Authority Inc. has barred former Morgan Stanley Smith Barney broker John Batista Bocchino for hiding about $190 million in Venezuelan bond trades from the firm.
In a release in connection with its settlement, Finra charged that Mr. Bocchino conducted about 300 Venezuelan bond transactions on behalf of his customers, but hid the trades from the firm by using several nominee accounts in the names of well-known U.S. financial institutions. These trades were conducted after Morgan Stanley had restricted trading in the bonds due to the regulatory, anti-money laundering and reputational risks it posed.
To further conceal his customers’ trading, Finra saids that Mr. Bocchino created hundreds of firm documents, including new account forms and trade tickets that contained false information.
By executing the trades in violation of Morgan Stanley’s policies while at the same time concealing the true identities of the underlying customers, Finra said that the firm was unable to conduct appropriate suitability and anti-money laundering reviews of the activity.
In a related matter, Finra said that Rafael Barela Jacinto, Mr. Bocchino’s sales assistant, was suspended for one year and fined $10,000 for creating firm documents that contained false information.
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