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Michael Riccio Faces FINRA Suspension 

Dec 31, 2021 Regulatory Action

Michael Riccio (CRD #: 2529322), a broker with San Blas Securities, consented to a Massachusetts state consent order following a FINRA suspension, according to his BrokerCheck record, accessed on December 14, 2021. 

Massachusetts Regulatory Action  

According to the consent order, conditions were placed on Michael Riccio's registration in Massachusetts following his FINRA suspension. Those conditions will focus on his outside business activities, which were also the subject of his FINRA suspension. 

Undisclosed Outside Business Allegations 

According to an Acceptance, Waiver, and Consent agreement dated June 11, 2021, Michael Riccio consented to the findings that from January 2018 through June 2019, he allegedly participated in two outside business activities without prior written notice to his member firm LPL Financial, in violation of FINRA Rules 3270 and 2010. 

The AWC states that while registered with LPL, Michael Riccio was a notary public and provided notary services to LPL customers. During that same period, he also allegedly provided notary and Medicaid application preparation services to the mother of a former customer and received approximately $3,600 in compensation for those services.  LPL Financial's written supervisory procedures required registered representatives to disclose all outside business activities and receive written approval from the firm.  

Michael Riccio allegedly did not provide written notice to LPL seeking approval of his notary or Medicaid application preparation services as outside business activities. Additionally, he allegedly provided a false and misleading compliance attestation to LPL because he did not disclose his notary services as an outside business activity. 

FINRA Rules 3270 and 2010 

FINRA Rule 3270 requires that brokers provide written notice to their firms regarding their outside business activities. By engaging in an outside business activity without providing prior written notice to his firm, Michael Riccio violated FINRA Rules 3270 and 2010. 

A violation of FINRA Rule 3270 also constitutes a violation of FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade.  

Michael Riccio does not have any businesses listed in the Outside Business Activity of his detailed BrokerCheck report. This is where outside businesses that a broker discloses to their firm should appear. 

As part of the terms of the AWC, Michael Riccio consented to a 2-month suspension and a $5,000 fine.  

Employment Termination Details 

On June 11, 2021, LPL Financial fired Michael Riccio for allegedly participating in undisclosed outside business activities. According to the allegations, he was a notary and provided services to customers. The allegations further state that Michael Riccio also offered assistance to the mother of a former customer and received approximately $3,600.00 compensation for those services without seeking approval from LPL. In addition, Michael Riccio allegedly provided a false attestation to the firm of an outside business activity. 

Background Information 

Michael Riccio has passed the following exams:  

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

He is a registered broker in seven states.  

Michael Riccio has also worked with the following firms: 

  • Kovack Securities (CRD#:44848) 
  • Securities America (CRD#:10205) 
  • Investacorp (CRD#:7684) 
  • Commonwealth Financial Network (CRD#:8032) 
  • IDS Life Insurance Company (CRD#:6321) 
  • American Express Financial Advisors(CRD#:6363) 

Kurta Law Can Help 

If you have suffered losses after working with Michael Riccio, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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. Please contact us if you have any questions about how to proceed.