FINRA Expels Brokerage Firm and CEO for Defying SEC

The Financial Industry Regulatory Authority ("FINRA") has expelled brokerage firm EKN Financial Services Inc. for "numerous compliance violations." FINRA also barred EKN's CEO, Anthony Ottimo, from the securities industry for life for continuing to act as CEO after the Securities and Exchange Commission ("SEC") banned him from acting in such a capacity. This conduct is emblematic of the utter disregard that many brokerage firms have for securities regulators. Ultimately, such conduct reflects a callous indifference for the fiduciaries duties owed to investors and this type of attitude at some brokerage firms often leads to incidents of investment fraud and stockbroker misconduct.

FINRA accused EKN of widespread reporting failures and net-capital deficiencies, as well as numerous violations of FINRA rules and federal securities laws, including provisions governing money laundering. In addition, Mr. Ottimo is accused of continuing to act as EKN's chief executive despite being barred from doing so by the SEC in 2008. FINRA has banned Mr. Ottimo from the securities industry and suspended EKN's president, Thomas Giugliano, for a year and fined him $150,000.

The SEC order against EKN in 2008, in which Mr. Ottimo was barred from serving as CEO, was the result of allegations that EKN had defrauded mutual funds in which some of its customers had invested.

Share This Story

Share your experience with investment fraud, and contribute to a community dedicated to protection and empowerment. Together, we can unveil strategies, share insights, and build a shield against financial deceit.

Let’s Discuss Your Case Today

When fighting for your rights, you may go up against some dangerous enemies. You want an attorney flying by your side to help navigate you through the twists and turns of the legal system. 

I Want To...
No Recovery, No Fees (888) 578-6255

Subscribe to our email!

Subscribe to our email!

Subscribe to our email!

uploadmagnifiercross linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram