According to FINRA, William Pergola (CRD #1132631), based in Plainview, New York, was fined $5,000 and suspended from association with any FINRA member in all capacities for one month. The suspension was in effect from September 16, 2024, through October 15, 2024.
Without admitting or denying the findings, Pergola consented to the sanctions and to the entry of findings that he certified to the State of New York that he had personally completed 15 hours of continuing education required to renew his state insurance license when, in fact, another person had completed that continuing education on his behalf. This misrepresentation constitutes a violation of the professional and ethical standards that govern registered representatives in the securities industry.
The continuing education requirements that apply to insurance-licensed financial professionals exist to protect consumers. These educational programs are designed to keep professionals informed about new products, regulatory changes, compliance best practices, and ethical obligations. By having another person complete the coursework, a professional effectively certifies to the state that they possess knowledge and training they do not actually have. This creates a gap between the professional's actual competence and the competence the state believes they have, which can ultimately harm the clients who rely on their advice.
FINRA's enforcement of continuing education fraud reflects the organization's broader commitment to maintaining honesty and integrity in the securities industry. Although continuing education fraud may seem like a relatively minor infraction compared to cases involving direct financial harm to investors, FINRA recognizes that dishonesty in any form is corrosive to the trust that underpins the financial services industry. A broker who is willing to deceive regulators about their qualifications may be more likely to engage in other forms of misconduct.
This case is one of multiple similar actions taken against New York-based professionals during this enforcement cycle, indicating that FINRA identified a pattern of continuing education fraud and pursued coordinated disciplinary proceedings. The consistency of the sanctions imposed, typically a $5,000 fine and one-month suspension, reflects FINRA's effort to apply penalties fairly and predictably.
Investors should take note of these enforcement actions and use them as a reminder to verify the qualifications and disciplinary records of their financial professionals. FINRA BrokerCheck is a valuable free tool that provides transparency into a broker's history, including any sanctions or disciplinary actions. Staying informed is one of the most effective ways investors can protect themselves.
