NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Ronald Pellegrino (Principal)
C3B20050012

Securities and Exchange Commission sustained findings of violation and sanctions on appeal of a National Adjudicatory Council decision on appeal from Office of Hearing Officers decision.

Acting on a member firm’s behalf, Pellegrino failed to develop an adequate supervisory system reasonably designed to achieve compliance with applicable securities laws, regulations and NASD Rules, and ignored “red flags” that should have resulted in additional supervisory scrutiny. Pellegrino’s supervisory failures resulted in firm registered representatives making unsuitable recommendations and misleading customers as to the risks of proprietary products over an extended time. Pellegrino facilitated the representatives’ misconduct by promoting sales to firm customers rather than improving compliance. He failed to enforce the firm’s written supervisory procedures regarding suitability determinations, and failed to take reasonable steps to monitor and have the firm perform appropriate individual suitability determinations based on each investor’s personal financial needs as prescribed in the firm’s supervisory and compliance manuals rather than solely on suitability guidelines. 

READ SEC Decision

Ronald Pellegrino (Principal): Barred in Principal capacity only.