Initiated By
FINRA
Allegations
Respondent Andrew Caputo Spaventa 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.
Resolution
letter
Sanctions
Suspension
Registration Capacities Affected
All capacities
Duration
n/a
Start Date
9/6/2019
End Date
12/16/2019
Regulator Statement
Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Andrew Caputo Spaventa is suspended on September 6, 2019, 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. Suspension lifted on December 16, 2019.
Broker Comment
This disclosure is in reference to a customer dispute, dated 4/3/2018, and a suspension, dated 9/6/2019. The customer dispute in question is in regards to a business partnership I was involved in when I entered the industry. Most registered representatives begin their careers under the mentorship of a senior, experienced registered representative, and this was no different with me. At the beginning of my career I was tasked with establishing relationships while my senior was tasked with investment portfolio management. The investor alleged that he incurred losses and this investor was part of a group of investors disputing against the firm, Salomon Whitney Financial. I did not have my own counsel and relied on the firms' counsel. Because my responsibility was limited to the initial introduction, I attempted to fight the charge on my own to no avail. Although the firm decided to settle (automatically forcing me to settle as well being I did not have my own counsel), I still wanted to fight the charge on my own, especially with my ex-business partner nowhere to be found as he left the industry. I was suspended for failure to pay the fine (as I was attempting to fight the charge). After spending months with several counsel, and learning that I could not fight the fine as it was binding, I decided to pay the full amount in December 2019 to lift the suspension and keep my license in good standing, even though I had ceased acting in the capacity of registered representative in June 2019.
It is quite common for registered representatives to have disclosures, as various incidents can occur throughout a professional's career and personal life. My disclosures are not the result of nefarious behavior or ill intentions, as I do not have a lengthy history of client-related issues. In fact, many of these disclosures are from my first couple of years in the industry and, as explained above, are predominantly due to a combination of others' incompetence and my own naivete at the time.