Fabio La Rosa Suspended by FINRA for Alleged Unauthorized Transfer

Fabio La Rosa (CRD #: 4424304), a broker registered with Morgan Stanley, has been suspended by FINRA, according to his BrokerCheck record, accessed on February 17, 2025. Read on to learn more about his alleged conduct as a broker.

FINRA Suspension

On January 17, 2025, Fabio La Rose consented to the entry of findings that he allegedly made unauthorized transactions in two clients trust accounts between November 2019 and December 2020.

According to a Letter of Acceptance, Waiver & Consent (AWC), Customer A and Customer B were allegedly a retired married couple with a joint brokerage account and independent trust accounts. The AWC alleged that neither customer was authorized to direct transactions in either trust account.

During the relevant period, Fabio La Rosa allegedly made 15 fund transfers totaling $90,700 from both clients’ trust accounts to their joint brokerage account based on verbal instructions given by Customer A.

Fabio La Rosa allegedly also inaccurately claimed on Morgan Stanley’s verbal authorization forms that he had spoken with the trustee of these trusts, who had authorization to direct transfers.

The AWC concluded that these allegations constitute a violation of FINRA Rule 2010.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Fabio La Rosa consented to the following sanctions:

• One-month suspension from FINRA
• $5,000 fine

His suspension will take effect on February 18, 2025, and will end on March 17, 2025. You can access the full AWC here.

Background Information

Fabio La Rosa has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

Fabio La Rosa is a registered broker in 36 states as well as the District of Columbia and the Virgin Islands. He is also a registered investment adviser in New York and Texas.

He has also worked for Citigroup Global Markets (CRD#:7059).

Kurta Law Can Help

If you worked with Fabio La Rosa and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.