Lyhen Fiallo (CRD #4579582) Has a Regulatory Action Disclosure on FINRA BrokerCheck

Lyhen Fiallo (CRD #4579582) is a formerly registered broker with a regulatory action disclosure on FINRA BrokerCheck. We reviewed her BrokerCheck report on March 11, 2026. It reflects one regulatory event and one judgment/lien disclosure. If you invested with Lyhen Fiallo and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action

Lyhen Fiallo’s FINRA BrokerCheck Report reflects one regulatory disclosure. A summary is below:

On January 26, 2026, Lyhen Fiallo FINRA BrokerCheck reported a final regulatory action. The disclosure states that she refused to provide documents and information requested by FINRA during an investigation into potential borrowing from a securities customer. The matter was resolved through an Acceptance, Waiver & Consent and resulted in a permanent bar in all capacities.

Judgment / Lien

Lyhen Fiallo’s FINRA BrokerCheck Report reflects one judgment/lien disclosure. A summary is below:

On March 6, 2024, Lyhen Fiallo FINRA BrokerCheck reported an IRS tax lien in the amount of $93,243.97. BrokerCheck states the lien is outstanding and lists Broward County Courthouse in Ft. Lauderdale, Florida.

Rule Summary #1: FINRA Rule 8210 (Provision of Information and Testimony)

FINRA Rule 8210 lets FINRA request documents, information, and testimony during an investigation. A refusal to comply can lead to severe sanctions, including a bar.

Rule Summary #2: FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)

FINRA Rule 2010 requires brokers and firms to observe high standards of commercial honor and just and equitable principles of trade. FINRA often cites it with more specific rules when it addresses misconduct.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on Her FINRA BrokerCheck report, Lyhen Fiallo:

Is not currently registered.

Has passed the Securities Industry Essentials (SIE) exam. Lyhen Fiallo has passed Series 6TO and Series 26. She has also passed Series 63.

Was previously registered with PFS Investments Inc.

Kurta Law Can Help

If you have worked with Lyhen Fiallo and you have concerns about activity in your account, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Securities Attorney | What is Securities Fraud?

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.