FINRA barred a Registered Principal from Boca Raton, FL, for not responding to FINRA charges that he referred customers of his member firm to entities controlled by his relative, who purportedly engaged in off-exchange forex contracts.  In fact, he was running a fraudulent scheme.  Meanwhile, customers invested more than $3.3 million with one entity - for which the Principal received over $960K for the referrals.  Both entities were fraudulent schemes and Riolo’s relative was subsequently convicted and sentenced in court for his fraudulent activities. Somewhat fortunately, his customers only lost a combined total of $120K. 

The principal agreed with FINRA's charges that he had engaged in an outside business activity without providing written notice to, or receiving approval from, his firm.  The Princiapl also lied on his monthly compliance questionnaires.  This is FINRA Case #2010022499001.   [March Disciplinary Actions]