FINRA

FINRA RULES 2010, 8210, NASD RULES 2110, 3030, 3040: TUCCIARONE'S ENGAGED IN OUTSIDE BUSINESS ACTIVITY WITH SALES OF AN INVESTMENT COMPANY'S INTERESTS TO INVESTORS, WHICH CONSTITUTED PRIVATE SECURITIES TRANSACTIONS AWAY FROM HIS MEMBER FIRM. ALSO, TUCCIARONE'S AGREEMENT WITH SOME OF HIS SUBORDINATES AND THE FIRM'S BROKERS TO SHARE IN COMMISSIONS RESULTING FROM INVESTMENTS IN THE COMPANY CONSTITUTED PARTICIPATION IN PRIVATE SECURITIES TRANSACTIONS AWAY FROM HIS FIRM. IN EXCHANGE FOR TUCCIARONE'S PARTICIPATION IN THESE PRIVATE SECURITIES TRANSACTIONS, HE RECEIVED COMMISSIONS. TUCCIARONE DID NOT NOTIFY HIS FIRM IN WRITING AND OBTAIN ITS APPROVAL PRIOR TO PARTICIPATING IN THESE INVESTMENTS. FURTHER, TUCCIARONE CONCEALED FROM THE FIRM HIS INVOLVEMENT IN SOME INVESTORS' INVESTMENTS BY ARRANGING FOR THE COMPANY TO PAY THE COMMISSIONS HE EARNED TO HIS RELATIVE. TUCCIARONE AGAIN CONCEALED HIS PARTICIPATION IN THE COMMISSIONS-SHARING AGREEMENT BY ARRANGING FOR A COMMISSION CHECK TO BE MADE PAYABLE TO HIS RELATIVE FROM AN ENTITY'S ACCOUNT. TUCCIARONE'S PARTICIPATION IN THE COMPANY'S INVESTMENTS MADE BY INVESTORS CONSTITUTED AN OUTSIDE BUSINESS ACTIVITY FOR HIM. TUCCIARONE RECEIVED COMPENSATION AS A RESULT OF HIS ACTIVITIES. TUCCIARONE DID NOT PROVIDE PROMPT NOTICE TO HIS FIRM REGARDING HIS OUTSIDE BUSINESS ACTIVITY. FURTHER, HE CONCEALED FROM THE FIRM HIS ACTIVITIES BY ARRANGING FOR HIS COMPENSATION TO BE PAID TO HIS RELATIVE. ON SEVERAL OCCASIONS TUCCIARONE INSTRUCTED A BROKER OF HIS FIRM TO PROVIDE THE FIRM WITH MISLEADING INFORMATION AND TO DESTROY THE INVESTMENT COMPANY'S RELATED DOCUMENTS. SHORTLY AFTER THE NEWS REPORTS ABOUT THE INVESTMENT COMPANY, IN A MEETING WITH HIS FIRM, TUCCIARONE FALSELY INFORMED HIS FIRM THAT HIS INVOLVEMENT WAS LIMITED TO SETTING UP A CAPTIVE INSURANCE AGENCY. LATER, IN RESPONDING TO A QUESTIONNAIRE FROM THE FIRM, TUCCIARONE FALSELY STATED THAT HE HAD BEEN UNAWARE THAT A BROKER HAD SOLICITED ANY INVESTMENTS OF THE INVESTMENT COMPANY AND FAILED TO DISCLOSE THAT HE HAD SOLD INTERESTS IN THE COMPANY AND PARTICIPATED IN A COMMISSION-HIDING SCHEME. IN CONNECTION WITH ITS INTERNAL INVESTIGATION INTO WHETHER, AND TO WHAT EXTENT, ITS BROKERS HAD BEEN INVOLVED WITH THE COMPANY, THE FIRM AGAIN MET WITH TUCCIARONE TO DISCUSS DOCUMENTS SUGGESTING HIS PARTICIPATION IN ARRANGING INVESTMENTS IN THE COMPANY. DURING THAT MEETING, TUCCIARONE FALSELY INFORMED THE FIRM THAT HIS INVOLVEMENT IN THE COMPANY WAS LIMITED TO TRYING TO ESTABLISH A CAPTIVE INSURANCE COMPANY. TUCCIARONE APPEARED FOR SWORN ON-THE-RECORD TESTIMONY WITH FINRA AND PROVIDED FALSE TESTIMONY. TUCCIARONE FALSELY TESTIFIED THAT BEFORE NEWS OUTLETS BEGAN REPORTING THAT THE COMPANY MAY BE A PONZI SCHEME, HE WAS UNAWARE THAT A BROKER HAD SOLD AN INTEREST IN THE COMPANY. TUCCIARONE ALSO FALSELY TESTIFIED THAT HE WAS UNAWARE THAT ANYONE IN THE OFFICE OF AN INSURANCE AGENCY HE JOINTLY OWNED, INCLUDING HIMSELF, HAD RECEIVED COMMISSIONS IN CONNECTION WITH THE INVESTMENTS. TUCCIARONE FALSELY TESTIFIED THAT HE NEVER SOLD INTERESTS IN THE COMPANY TO ANYONE AND DENIED ANY INVOLVEMENT IN INVESTORS' INVESTMENTS WITH THE COMPANY. TUCCIARONE FALSELY TESTIFIED THAT HE NEVER SUGGESTED TO ANYBODY AT ANY TIME THAT THE COMMISSIONS BE MADE PAYABLE TO HIS RELATIVE, OR TO THE RELATIVE OF ANOTHER BROKER. TUCCIARONE FALSELY TESTIFIED THAT HE NEVER SUGGESTED TO A BROKER THAT HE DESTROY RELATED DOCUMENTS.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

Indefinite

12/10/2012

TUCCIARONE WAS FOUND TO HAVE VIOLATED FINRA RULES 2010, 8210, NASD RULES 2110, 3040. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, TUCCIARONE CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.