FINRA regulators have entered into a settlement with EKN Financial Services, Anthony Ottimo, Sr. and Thomas Giugliano resulting in the expulsion of EKN from FINRA. EKN previously employed 42 registered representatives and maintained one office in Melville, New York.
According to a FINRA press release,
[F]rom 2008 through 2011, Ottimo acted in a supervisory role despite an SEC order that barred him from associating with any broker or dealer in a supervisory capacity, and acted as CEO despite not being registered as a principal. During the relevant period, EKN and Giugliano repeatedly misrepresented to FINRA that Ottimo was no longer acting as EKN’s CEO, as a principal or as a supervisor. In 2011, EKN lied to FINRA examiners, reporting that since 2008, it had “never filled” the CEO position when, in fact, FINRA’s investigation revealed that EKN’s own documents indicated that from 2008 through 2011, Ottimo was listed as EKN’s CEO and was operating in that capacity. As CEO, Ottimo supervised other EKN personnel, negotiated and executed agreements, controlled its finances, retained signatory authority over its bank accounts, and represented himself as EKN’s CEO to its clearing firm and other third parties.
Dept. of Enforcement v. EKN Financial Services, Inc., Disciplinary Proceeding No. 2008011665801