SEC Fined Michael Perini $35,000
Michael Perini (CRD #: 5509940), a previously registered broker, was the subject of an SEC order, according to his BrokerCheck record, accessed on June 4, 2022. Keep reading if you have questions about his conduct as a broker and as the owner of Perini Capital.
SEC Regulatory Action
On May 6, 2022, the Securities and Exchange Commission filed a cease-and-desist order against Michael Perini and portfolio management firm Perini Capital. The order alleged that Michael Perini, as sole owner, president, and chief executive of Perini Capital, conducted undisclosed principal trades with advisory clients of his firm.
The SEC alleged that Michael Perini executed 33 principal trades between 14 different client accounts and his own accounts without providing the required written disclosure to clients regarding the principal nature of the trades. Michael Perini also allegedly failed to obtain consent from clients for these trades.
Clients of Perini Capital allegedly included retailers, unspecified institutions, and hedge funds. Perini Capital allegedly typically employed a fixed income investment strategy focused on trading in “non-investment grade, non-agency mortgage-backed securities and other mortgage industry related securities.”
Michael Perini faced censure and fines of $35,000 as a result of this regulatory action.
What are principal trades?
In a principal trade, a broker-dealer buys or sells a security from their own inventory. These contrast with agency trades, in which a broker places a trade outside of their firm, acting as a middleman between their client and the buyer/seller.
FINRA Rule 2020
The omission of information relevant to investors violates FINRA Rule 2020, which prohibits the use of deceptive, manipulative, and otherwise unethical means of influencing the purchase or sale of securities.
Michael Perini has passed the following exams:
- Series 63 - Uniform Securities Agent State Law Examination
- Series 7 - General Securities Representative Examination
- Series 24 - General Securities Principal Examination
He previously worked for SecureVest Financial Group (CRD#:10100).
Kurta Law Can Help
If you worked with Michael Perini and you have concerns about your investments, please contact us today at 877-600-0098 or email@example.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 and 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.