According to FINRA, Jonathan Farchi-Segal (CRD #7250620), based in North Miami, Florida, was assessed a deferred fine of $10,000 and suspended from association with any FINRA funding portal member in all capacities for 12 months. The suspension was in effect from September 3, 2024, through September 2, 2025.

Without admitting or denying the findings, Farchi-Segal consented to the sanctions and to the entry of findings that he initially made false statements to FINRA in response to an information request in connection with a Regulation Crowdfunding (Reg CF) offering through his FINRA-registered funding portal member firm. The purpose of the offering was to raise funds to purchase a luxury handbag and then resell it for a profit. Farchi-Segal incorrectly identified a third party as the prior owner of the handbag, provided FINRA with a purchase agreement that was not authentic, and stated there was no receipt when, in fact, there was one. Ultimately, Farchi-Segal corrected his misstatements.

Making false statements to FINRA is one of the most serious violations a registered professional can commit. FINRA's ability to regulate the securities industry and protect investors depends on receiving truthful and complete information from the individuals and firms it oversees. When a broker or funding portal operator provides false information in response to a regulatory inquiry, it obstructs the regulatory process and can delay or prevent the detection of misconduct that harms investors.

Regulation Crowdfunding, established under Title III of the JOBS Act, allows companies to raise capital from everyday investors through registered funding portals. Because Reg CF offerings are available to non-accredited investors who may have limited investment experience, the integrity of the information surrounding these offerings is critically important. Funding portals have a gatekeeping responsibility to ensure that offerings conducted through their platforms comply with applicable regulations.

The nature of the underlying offering in this case, raising money to purchase and resell a luxury handbag, is unusual and highlights the wide range of business ventures that seek funding through Reg CF. Regardless of the nature of the business, the regulatory obligations are the same, and providing false information to regulators is never acceptable.

While Farchi-Segal ultimately corrected his misstatements, the initial dishonesty resulted in a substantial 12-month suspension and a $10,000 deferred fine. Investors should understand that FINRA takes false statements extremely seriously and that the consequences extend well beyond the immediate sanctions. This case serves as a reminder that transparency and honesty with regulators are non-negotiable obligations for anyone operating in the securities industry.