FINRA recently fined Merrimac Corporate Securities, Inc. $100,000 after determining that the firm failed to supervise two of its registered representatives in violation of NASD Rules 3010 and 2110 and FINRA Rule 2010.
The registered representatives, Richard Pizzuti and Daniel Voccia, convinced 30 individuals to invest more than $4 million in a company that they controlled between 2006 and 2009. It appears that these investments were unsuitable for many of these customers.
Merrimac contended that it will be unable to pay the fine. FINRA has recommended that Merrimac pay off the fine in $10,000 installments over the course of 10 months. FINRA recommended that Merrimac cut certain of its business expenses in order to be able to make the installment payments.
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