FINRA

RESPONDENT QUARTARARO FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

10/23/2014

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT QUARTARARO IS SUSPENDED ON OCTOBER 23, 2014 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

FINRA

WILLFULLY VIOLATED FINRA BY-LAWS ARTICLE V, SECTION 2, AND FINRA RULE 2010: QUARTARARO MISAPPROPRIATED CUSTOMERS' FUNDS AND FORGED CUSTOMERS' SIGNATURES. QUARTARARO WITHDREW, WITHOUT AUTHORIZATION, A TOTAL OF APPROXIMATELY $775,400 FROM THE ACCOUNTS OF SOME OF HIS CUSTOMERS AT HIS MEMBER FIRM'S AFFILIATE BANK. TO ACCOMPLISH THE UNAUTHORIZED WITHDRAWALS, QUARTARARO FORGED THE CUSTOMERS' SIGNATURES ON THE BANK'S WITHDRAWAL SLIPS AND DEBIT MEMORANDA, AND THEN SUBMITTED THE FORGED DOCUMENTS TO THE BANK'S EMPLOYEES. AT QUARTARARO'S DIRECTION, THE EMPLOYEES DISBURSED CERTAIN OF THE FUNDS DIRECTLY TO QUARTARARO, AND TRANSFERRED OTHER FUNDS TO QUARTARARO'S PERSONAL BANK ACCOUNTS. DURING THE PERIOD, QUARTARARO WITHDREW WITHOUT AUTHORIZATION APPROXIMATELY $499,363 FROM THE BANK ACCOUNT OF ONE CUSTOMER AND APPROXIMATELY $276,076 FROM THE BANK ACCOUNT OF ANOTHER CUSTOMER, FOR A TOTAL OF AROUND $775,439. QUARTARARO WILLFULLY MADE OR CAUSED TO BE MADE IN AN APPLICATION TO BECOME ASSOCIATED WITH A FINRA MEMBER, A STATEMENT WHICH WAS, AT THE TIME, AND IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT WAS MADE, FALSE OR MISLEADING WITH RESPECT TO A MATERIAL FACT. THE BANK ALERTED QUARTARARO'S FIRM TO HIS POSSIBLE MISCONDUCT, AND THE FIRM PLACED QUARTARARO ON ADMINISTRATIVE LEAVE. AFTER AN INVESTIGATION IN WHICH QUARTARARO ULTIMATELY ADMITTED TO THE MISAPPROPRIATION AND FORGERY, THE FIRM DISCHARGED HIM. THE REASON FOR THE DISCHARGE WAS THAT QUARTARARO HAD WITHDRAWN FUNDS FROM CUSTOMER BANK ACCOUNTS WITHOUT AUTHORITY AND HAD SIGNED CUSTOMER NAMES ON BANK DOCUMENTS. AROUND THE TIME OF HIS DISCHARGE, QUARTARARO WAS SEEKING EMPLOYMENT WITH ANOTHER MEMBER FIRM. AFTER QUARTARARO'S DISCHARGE BUT BEFORE HIS FORMER FIRM HAD REPORTED THE DISCHARGE IN A FORM U5, QUARTARARO'S NEW FIRM SUBMITTED TO FINRA'S CENTRAL REGISTRATION DEPOSITORY A FORM U4 TO REGISTER QUARTARARO. THAT FORM U4 CONTAINED INACCURATE INFORMATION THAT HAD BEEN SUPPLIED BY QUARTARARO. QUARTARARO FALSELY STATED THAT HE HAD NEVER BEEN DISCHARGED AFTER ALLEGATIONS WERE MADE THAT HE HAD VIOLATED INVESTMENT-RELATED STATUTES, REGULATIONS, RULES, OR INDUSTRY STANDARDS OF CONDUCT OR HAD ENGAGED IN FRAUD OR THE WRONGFUL TAKING OF PROPERTY.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

7/13/2012

WITHOUT ADMITTING OR DENYING THE FINDINGS, QUARTARARO CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. THE RESPONDENT UNDERSTANDS THAT THIS SETTLEMENT INCLUDES A FINDING THAT HE WILLFULLY MADE OR CAUSED TO BE MADE A MATERIAL MISSTATEMENT ON A FORM U4, AND THAT UNDER SECTION 3(A)(39)(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND ARTICLE III, SECTION 4 OF FINRA'S BY-LAWS, THIS FINDING MAKES HIM SUBJECT TO A STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER.