Kevin Barletta (CRD #: 4691033), a previously registered investment adviser with Royal Alliance Associates, has been suspended by FINRA following allegations of cross-trading, according to his BrokerCheck record, accessed on December 8, 2020. This is not Mr. Barletta’s only disclosure related to cross-trading.
On October 15, 2020, Kevin Barletta entered into an Agreement, Waiver and Consent (AWC) agreement with FINRA. Without admitting or denying the findings, Kevin Barletta consented to the findings that he had circumvented his firm’s Written Supervisory Procedures (WSPs) when he executed a cross trade of alternative investment products. A cross trade occurs when buy and sell orders for the same asset cancel each other out, which makes it possible for a broker to leave the transaction unreported and therefore hidden from regulators.
In this case, Kevin Barletta used a cross trade to disguise a transaction between two customers. He had one investor sign forms agreeing to transfer shares of speculative securities called unlisted REITs to another customer’s account. Then, he had the buyer sign forms agreeing to transfer a cash payment to the seller. Afterward, Mr. Barletta falsified forms to make the transfer of shares look like a gift between friends rather than a transaction. This prevented his firm from having the chance to review the transaction and prevented the firm from maintaining accurate records. When firms review transactions like these, they have the chance to evaluate their suitability, and catch transactions that pose too much risk to the investor.
Kevin Barletta has consented to a fine of $5,000 and a two-month suspension. He further agreed to a 20-hour continuing education course concerning unlisted REITs, suitability, recordkeeping requirements, and ethical considerations. You can read a copy of his AWC here.
On December 22, 2016, Kevin Barletta was fired from his position as a registered representative of LPL Financial, following allegations that Mr. Barletta had failed to adhere to the firm’s policies regarding cross-trading.
Kevin Barletta has passed the Series 66 Uniform Combined State Law Examination, the Securities Industry Essentials Examination, and the Series 7 General Securities Representative Examination.
Kevin Barletta has worked in the securities industry for 17 years, during which time he has worked for four different firms:
- Royal Alliance Associates (CRD #: 23131)
- LPL Financial (CRD #: 6413)
- IDS Life Insurance Company (CRD #: 6321)
- Ameriprise Financial Services (CRD #: 6363)
If Kevin Barletta was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta. Call (877) 238-4175 or email email@example.com for a free case consultation with a securities attorney.