According to FINRA, Richard F. DiVenuto (CRD #2513921, Newburgh, New York) recently submitted an AWC in which he was barred from association with any FINRA member in any capacity.
Without admitting or denying the findings, DiVenuto consented to the sanction and to the entry of findings that he willfully made misrepresentations and omissions to an individual in connection with the individual’s purchase of an outside business entity’s stock in exchange for the intellectual property rights to a non-securities product owned by the individual. The findings stated that as a result of his conduct, DiVenuto violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and FINRA Rule 2020.
The findings also stated that DiVenuto engaged in an outside business activity without providing prior written notice to his member firm. DiVenuto allegedly helped start the outside business entity, acted as one of its principals and senior managers, and received shares in the business entity as compensation. The findings also included that DiVenuto allegedly participated in private securities transactions exceeding $3,775,000 without providing written notice to the firm, nor did he seek or obtain the firm’s permission to participate in them, since these transactions were outside the regular course and scope of his employment with the firm.
FINRA also reportedly found that DiVenuto falsely represented in firm compliance questionnaires and another firm compliance-related document that he had not, among other things, participated in an outside business activity or private securities transaction.
For the full FINRA findings, see FINRA Case #2013036281301.
According to his FINRA BrokerCheck, DiVenuto was registered with Morgan Stanley from 06/2009 – 03/2013 and Concept Capital Markets from 04/2013 – 04/2015.
The foregoing information, which is all available on the FINRA website, is being provided by The White Law Group.
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