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Regulatory Sanctions

FINRA Caught Broker in a State of ‘Suspended Animation’

September 8, 2017

[Photo:  Suspended Animation (Blueberry … Intro), by Jett Badass Michaels / YouTube]

 

by Howard Haykin

 

Gary Ladrido agreed to a $10K fine and a 14-month suspension to settle FINRA charges that he acted in the capacity of a registered rep while suspended by FINRA in all capacities.

 

BACKGROUND.    Ladrido, a resident of San Diego, CA, entered the securities industry in 1998. During his 19 years in the business, he's been associated with 10 different broker-dealers. In November 2013, he became registered as a General Securities Rep with Potomac Capital Markets, and remained with that firm until 11/10/14, after having voluntarily terminated his employment. In early 2016, Ladrido registered with another FINRA member firm and voluntarily Releft that firm in May 2017. He currently is not associated with a FINRA member firm. Other than the FINRA-imposed suspension detailed below, Ladrido has no other relevant formal disciplinary history.

 

FINRA FINDINGS.    While serving a 4-month suspension - from 7/10/13 through 11/12/13 - Ladrido continued to act in the capacity of a registered representative. He had been suspended from all capacities for "failing to comply with [an arbitration award] ... or to satisfactorily respond to [FINRA's] request for information concerning the status of compliance." Specifically, on multiple occasions, Ladrido acted on behalf of his private fund clients - e.g., private equity funds and hedge funds – by soliciting prospective investors to purchase limited partnership interests in these funds.

 

FINANCIALISH TAKE AWAY.    It's not clear from the information that FINRA provides in this case whether Gary Ladrido violated his suspension while being employed by any broker-dealer - though reference is made to Potomac Capital Markets - which often is an indication by FINRA that the violations cited in the case occurred while the individual was employed by that firm.

 

However, the problem hrere is that Potomac has no disciplinary history, according to FINRA BrokerCheck. So, I'm inclined to presume that Ladrido was not associated with any firm at the time he violated his suspension. That said, FINRA could have provided a better explanation in its AWC write-up. 

 

This case was reported in FINRA Disciplinary Actions for August 2017.

For details on this case, go to ...  FINRA Disciplinary Actions Online, and refer to Case #2014043691301.