BROKER REPORT: Financial Advisor Richard F. DiVenuto Permanently Barred from Conducting Securities Business

people-4-1163712The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Richard F. DiVenuto.  Mr. DiVenuto was employed and registered with Concept Capital Markets, LLC, a New York broker-dealer, according to his publicly available BrokerCheck, as maintained by the Financial Industry Regulatory Authority (FINRA).

Per his BrokerCheck report, Mr. DiVenuto was previously employed by Morgan Stanley from 2009 to 2013, where he was discharged after the “concerns relating to employee’s involvement with outside company named Myos Corporation (formerly Atlas Therapuetics).”  Prior to his employment and subsequent termination from Morgan Stanley, Mr. DiVenuto was employed by Citigroup Global Markets, Inc. from 1994 to 2009, according to BrokerCheck.

Mr. DiVenuto was permanently barred from association with any FINRA member broker-dealer on April 13, 2016 by FINRA, after submitting a Letter of Acceptance, Waiver and Consent No. 2013036281301 (AWC).  According to the AWC, Mr. DiVenuto violated:

  • FINRA Rules 2020 and 2010 by willfully making misrepresentations and omissions to an individual regarding that person’s purchase of stock in exchange for certain intellectual property rights he owned;
  • FINRA Rules 3270 and 2010 by engaging in outside business activities without getting approval from his employer;
  • NASD Rule 3040 and FINRA Rule 2010 by participating in private securities transactions without obtaining approval from his employer; and
  • FINRA Rules 8210 and 2010 by providing false and misleading information to FINRA concerning his outside business activity and private security transactions.

Brokers are required by the securities laws and industry rules to disclose to their employers their business activities outside of their brokerage business, as well as any securities transactions that occur away from their employer.  Their employer may then be required to supervise the broker for securities transactions that occur away from the firm, and may then hold resulting liability for the actions taken by the broker.

Prior to being barred, Mr. DiVenuto was suspended on September 23, 2015 after “fail[ing] to comply with an arbitration award or settlement agreement, or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance,” according to his BrokerCheck report.