FINRA issued harsh disciplinary actions against as many as 10 individuals whom, they say, engaged in outside business businesses but did not disclose the activities to their employer;  nor did they obtain firm's prior authorization.  Here are 4 of their stories:  

For complete reads, click onto:   [FINRA Disciplinary Actions for December]

    1.  Registered Rep Cataldo, Lexington, MA, agreed to be barred from the industry, to settle FINRA charges he engaged in several outside business ("O/S Bus.") activities without providing prompt written notice to his member firm and failed to disclose these outside activities on his firm’s compliance questionnaires.  He also failed to completely respond to FINRA requests for information.   (FINRA Case #2009017809101)

    2. Registered Principal DeMiro, Milford, MI, agreed to a $5K fine and 9-month suspension, to settle FINRA charges engaged in private securities transactions outside the scope of his employment with his firm when he sold $587,000 of promissory notes in a Reg. D offering of an entity to customers.  Failed to provide prior written notice, failed to receive written approval or acknowledgement for these sales.  (FINRA Case #2008012498701)

    3.  Registered Rep Kearney Jr., Portland, OR, agreed to be barred from industry, to settle FINRA charges he engaged in an O/S Bus. Activity without providing prompt written notice.  Kearney falsely stated to his supervisor and a firm compliance officer that he was not aware of the LLC with which he was engaged and that he had no involvement or relationship with it.  He further intentionally gave false information to FINRA in this matter.  (FINRA Case #2009017287701)

    4.  Registered Rep Serrano, Brooklyn, NY, agreed to a $26K fine and 12-month suspension, to settle FINRA charges he entered into a formal “Advisor Agreement” with a financial PR firm.  The website issued press releases recommending specific securities to the public, with the releases implying that the recommendations were made by Serrano, whom they identified by name and CRD # as a registered person the website employed.  Serrano failed to provide written notice to either to either of the member firms through which he was registered, and signed a disclosure document in which he specifically and falsely denied that he was engaging in any O/S Bus. activity.  (FINRA
Case #2009017710701)