UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Ronald T. Molo. In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. The Commission finds that: on September 27, 2022, in the civil action Case No. 21-cv-6286, in the United States District Court for the Northern District of Illinois, a judgment by default was entered against Molo permanently enjoining him from participating, directly or indirectly, in the issuance, purchase, offer, or sale of any security, including inducing or attempting to induce the purchase or sale of any security, or causing any person or entity to engage in any activity for the purpose of inducing or attempting to induce the purchase of sale of any security, or deriving compensation from any activity engaged in for the purpose of inducing or attempting to induce the purchase or sale of any security, and further including but not limited to, participating in the issuance, purchase, offer, or sale of any security through an entity that Molo owns or controls; provided, however, that such injunction shall not prevent Molo from purchasing or selling securities listed on a national securities exchange for his own personal account. The Commission's complaint alleged that between January 2019 and November 2020, Molo misappropriated a total of approximately $800,000 from two of his investment advisory clients and one of his brokerage customers. On December 1, 2022, Molo pled guilty to one count of wire fraud in violation of Title 18 United States Code, Sections 1343 before the United States District Court for the Northern District of Illinois Eastern Division, in Criminal Case No. 1:21-CR-698. On May 23, 2023, a judgment in the criminal case was entered against Molo. He was sentenced to a prison term of 24 months, followed by two years of supervised release, and he was ordered to pay restitution in the amount of $710,308. The count of the criminal indictment to which Molo pled guilty alleged, inter alia, that from approximately 2018 through June 2021, Molo, while employed by a large financial institution as a licensed financial advisor, conducted a scheme to defraud and obtain money from clients through materially false and fraudulent pretenses, representations, and promises. As part of the scheme, Molo falsely advised multiple clients that he had a good investment opportunity for them, supposedly involving tax-exempt, interest-bearing bonds or bond funds. In reality, this investment opportunity did not exist. As part of the scheme, Molo fraudulently induced clients to transfer funds to his personal bank account, and Molo then converted client funds for his own personal use.

Order

Bar (Permanent)

Any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

11/8/2023

Penny stock

Indefinite

11/8/2023

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission (the "Commission"), for its Complaint against Ronald T. Molo, alleges that, without investors' knowledge or authorization, he stole a total of $800,000 from investors, who are senior citizens, by convincing them to transfer money out of their financial institution accounts for the purported investment in tax-free bonds. In fact, the bonds did not exist. Molo did not tell the investors that he owned the account to which he directed them to transfer their money. Instead of investing the money as Molo had promised, he misused at least $778,000 of the investors' money for his own personal use. Molo also tried to cover up his fraud by sending approximately $22,000 of the investors' money back to the investors for supposed interest payments from the nonexistent bonds, using altered cashier's checks from his bank, funded with money drawn from Molo's own personal account. When the financial institution discovered Molo's fraud, it fired him. By engaging in the fraudulent conduct described above, Molo violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Section 17(a) of the Securities Act, and Sections 206(1) and (2) of the Advisers Act.

Judgment Rendered

Disgorgement

$778,102.00

Monetary Penalty other than Fines

Injunction

Illinois

Allegations relate to misappropriation of ~$800,000.00 of client funds and fictitious investments. See Illinois Securities Department Notice of Hearing dated October 26, 2021 in matter number 2100455

Order

Bar (Permanent)

All Capacities

Permanent

1/18/2023

Civil and Administrative Penalty(ies)/Fine(s)

$250,000.00

Revocation

FINRA

Respondent Molo failed to respond to FINRA requests for information.

Letter

Bar (Permanent)

All capacities

Indefinite

1/3/2022

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated September 30, 2021 and October 25, 2021, respectively, on January 3, 2022, Molo is barred from association with any FINRA member in all capacities. Molo failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

Client alleges former FA stole funds from them by wiring client funds to a bank account controlled by former FA's spouse under the guise that they were making an investment.

$263,119.54

Client alleges former FA stole funds from them by wiring client funds to a bank account controlled by former FA's spouse under the guise that they were making an investment.

$329,644.85

Client alleges former FA stole funds from them by wiring client funds to a bank account controlled by former FA's spouse under the guise that they were making an investment.

$282,237.50

Edward Jones

Discharged

Registered representative was terminated after clients transferred funds to an external account believed to be related to the registered representative. The transfers were subsequent to the registered representative soliciting a purported investment.

The client alleges that the financial advisor made unauthorized trades. The client further alleges that the advisor failed to advise him that early payment of his Brighthouse VUL policy could result in it being converted to a Modified Endowment Contact and failed to provide him information that the policy had so converted.

$16,000.00

THE CLIENT STATES THE FINANCIAL ADVISOR SUGGESTED SHE LIQUIDATE THE AMERICAN FUNDS HELD IN HER RETIREMENT ACCOUNT AND PURCHASE MSF MUTUAL FUNDS. SHE STATES SHE WAS INFORMED THE RETURN WOULD BE 4% AND SHE COULD GET HER MONEY OUT WITH NO PENALTY. SHE STATES SHE WAS NOT INFORMED OF THE COMMISSION ON THE MUTUAL FUND. SHE STATES, WHEN SHE QUESTIONED THE FINANCIAL ADVISOR AFTER RECEIVING HER FIRST STATEMENT, SHE WAS INFORMED THAT HE DID NOT KNOW WHAT SHE WAS CHARGED.

$5,274.00