[ by Howard Haykin ]

An associated person with Wexford, PA-based BFU Investment Management, agreed to a $7.5K fine and a 6-month suspension to settle FINRA charges was that he performed duties that required registration as a general securities principal before he was registered as such.  The findings stated that Antonucci prepared an inaccurate certification page for his member firm’s AML test to make it appear that the test had been conducted at an earlier date than it actually had been conducted. Antonucci created a Business Continuity Testing Plan memorandum in which he incorrectly certified that he had conducted telephone testing as part of the plan when he had not done so. These documents were provided to FINRA staff during a routine examination of the firm.

Background of Respondent.    From March 1996 to March 2011, Carl Antonucci was associated BFU Investment Management, working as the firm's Director of Finance.  Prior to this case, he had no FINRA disciplinary history. 

FINRA Findings and Allegations.   Antonucci allegedly performed certain functions requiring principal registration without being registered in that capacity.  The relevant time period for this case was January 2009 to March 2011.  He further allegedly falsified Firm records.  Such conduct would violate NASD Membership and Registration Rule 1021, and FINRA Rule 2010. 

Functioning as an Unregistered Principal.  During the relevant time period, 2009 to early 2011, in his alleged role as Director of Finance, Antonucci was actively involved in BFU's securities business even though he lacked proper registration.  Among his other activities, Antonucci allegedly:

• had final approval and responsibility for the accuracy of the Firm's financial reporting.
• supervised persons involved in the preparation and maintenance of firm books and records.
• served as a member of the Firm's Executive Management Committee, through which he participated in management decisions. 

Falsifying Records.   Among other things, Antonucci allegedly:

• prepared in August 2010 an inaccurate certification page for his member firm’s AML test, to make it appear that the test had been conducted at an earlier date than it actually had been conducted.
• created in September 2010 a Business Continuity Testing Plan memorandum in which he incorrectly certified that he had conducted telephone testing as part of the plan - when he had not done so.
• provided these inaccurate documents to FINRA staff during a routine examination for the firm.

[C-I Note: Presumably, had Antonucci carried the functions he had been given, and did so in an accurate and complete manner, it's likely that the firm would have borne the brunt of responsibility for his not being registered.  This is probably true because Antonucci conceivably might have pleaded ignorance as to such registrations requirements.  At that point, the firm's senior management and or chief compliance officer would have been the primary culprits - although they should still be held responsible for violating FINRA and NASD rules applicable to their assigning management functions to an individual who was not properly registered.]

For further details, go to:   [FINRA AWC #2010024993501] and [FINRA Disciplinary Actions for November].