FINRA suspended Henry John Dellaquila until December 3, 2013 for allegedly selling $1.37 million in variable annuities to 13 customers from January 2006 through November 2010 without his employing firm, Key Investment Services, Inc.'s, knowledge or consent. Dellaquila was fined $55,000 for this alleged misconduct, of which $50,000 represents disgorgement of commissions.
According to the investigation, Dellaquila provided necessary disclosures and completed the variable annuity ("VA") forms for the affected 13 customers, but he allegedly never signed his name to any documents.
FINRA charges that instead of signing the VA forms, Dellaquila forwarded the documents to a cousin who was associated with another FINRA-member firm so that the cousin, not Dellaquila, would appear as the registered representative of record for the various transactions.
The investigation found that by selling VAs through his cousin, Dellaquila "received a substantial financial benefit," including nearly $50,000 in commissions. Dellaquila was found to have failed to inform Key Investment Services about his arrangement and activities with his cousin and consequently failed to obtain written approval for the transactions. FINRA requires its member firms to supervise the activities of its stockbrokers. If a member firm fails to reasonably supervise its brokers, it may be found liable for the damages caused by its broker, even if the activities took place away from the firm.
As part of the sanctions against Dellaquila, FINRA ordered $50,000 in disgorgement, which represents the VA commissions Dellaquila received through his cousin.
If you have invested with Henry John Dellaquila or with any broker or firm who you suspect has charged excessive fees or commissions or has engaged in what you believe is unsuitable, unauthorized or excessive trading activity that has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.