According to FINRA, Raymond John DeRobbio (CRD #1092310), formerly associated with Cantone Research Inc. and based in Atlantic Highlands, New Jersey, was barred from the securities industry on March 11, 2024. DeRobbio was found jointly and severally liable, along with the firm and Anthony Joseph Cantone, to pay $4,777,425.69 plus interest in restitution to investors who were harmed by the misconduct.FINRA's investigation determined that DeRobbio willfully violated MSRB Rule G-19 by participating in the sale of municipal bonds without a reasonable basis to believe those investments were suitable for the customers who purchased them. The rule is a cornerstone of municipal securities regulation, designed to protect investors from being placed into investments that do not align with their financial needs, risk tolerance, or investment objectives.The violations centered on two municipal bond offerings — one worth approximately $2.2 million and another exceeding $6 million. DeRobbio failed to conduct adequate due diligence on these offerings before recommending them to customers. Critically, he failed to investigate why a previous underwriting firm had withdrawn from one of the offerings, a red flag that any diligent securities professional should have thoroughly examined.FINRA also found that DeRobbio was involved in overstating revenue projections and understating management fees connected to the bond offerings. In the case of an assisted-living facility project, fraudulent misrepresentations were made to investors. The bonds were sold using negligent misrepresentations and material omissions, meaning investors did not receive complete and accurate information about the risks and characteristics of their investments.The bar imposed on DeRobbio permanently removes him from the securities industry, preventing him from associating with any FINRA member firm. This sanction, combined with the substantial restitution order, reflects the seriousness of the violations and the harm caused to investors who trusted the recommendations they received.This case highlights several important principles for investors. Municipal bonds, while often considered lower-risk investments, are not without danger — particularly when the firms selling them cut corners on due diligence. Investors should always ask for detailed information about any investment being recommended, including the financial health of the underlying project and the track record of the parties involved. When projections seem unusually optimistic or when key details about fees are not forthcoming, those are warning signs. Checking a broker's background through FINRA BrokerCheck before investing can also help investors identify potential risks. (FINRA Case #2017055886402)