The Financial Industry Regulatory Authority suspended broker Edgar Lee Giovannetti of Memphis, Tennessee, fining him $15,000 for borrowing funds from a customer without first obtaining approval from his firm and for failing to amend FINRA Form U4 to disclose a lawsuit and settlement against him.
FINRA'S findings state that while he was associated with Commerce Square Trading, LLC in 2010, Giovannetti personally borrowed $115,156.45 from a firm customer without first notifying or obtaining permission from Commerce Square. Giovannetti was also found to have purchased the private security Lighting Science Group for $100,000 on behalf of a customer without first notifying and receiving permission from Commerce Square.
FINRA found that Giovannetti additionally failed to update his Form U4 to reflect a 2010 lawsuit in the Shelby County, Tennessee's Chancery Court, in which the court entered a $195,134.12 judgment against Giovannetti and in favor of First Citizens National Bank and which Giovannetti subsequently settled
If you invested with Edgar Lee Giovannetti or another broker who has engaged in unauthorized transactions, engaged in outside business activities and/or selling away, and such activity 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.