FINRA Investigates Bardown Capital For Failure To Supervise

FINRA Securities Arbitration Lawyers

John Grifonetti of Old Tappan New Jersey a stockbroker formerly employed by Bayes Capital and Bardown Capital is the subject of a Financial Industry Regulatory Authority (FINRA) investigation in which FINRA recommended on October 15, 2019 for a disciplinary action to be brought against Grifonetti by Department of Enforcement alleging that Grifonetti failed to supervise a securities business to prevent manipulative trading.

According to FINRA Public Disclosure, Grifonetti was allegedly responsible for creating and implementing supervision systems and written supervisory procedures capable of complying with FINRA rules and federal securities laws on manipulative trading including algorithmic gaming, pre-arranged trading, spoofing and layering. FINRA stated that Grifonetti should face disciplinary action for allegedly violating FINRA Rules 3110 and National Association of Securities Dealers (NASD) Rule 3010.

Also, FINRA indicated that Grifonetti allegedly caused the securities broker dealer’s violations of FINRA Rules 2010, 3110 and NASD Rule 3010. Allegedly, Grifonetti was the reason that the securities broker dealer did not have procedures and controls that concerned the management of risks pertaining to market access including manipulative trading. In addition, FINRA indicated that Grifonetti allegedly caused his firm to engage in conduct violative of FINRA Rules 2010 through failing to undertake adequate due diligence on customer transactions.

Grifonetti was registered with Bardown Capital between October 4, 2013 and June 3, 2019; and Bayes Capital between January 29, 2013 and July 2, 2018.