According to FINRA, Rogerio T. Almeida was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for two months for conducting outside business activities without providing prior written notice to his member firm.

Almeida worked as a mortgage loan officer without providing prior written notice to his firm, earning $35,026 in commissions from those activities. Registered representatives must notify their firms about outside business activities so firms can evaluate potential conflicts of interest and ensure compliance with securities laws and firm policies.

The violations became more serious because of Almeida's conduct after submitting an outside business activity disclosure form. He ultimately submitted a form to the firm disclosing that he had a mortgage license with a mortgage company but inaccurately stated he was not working as a loan officer. Although the firm rejected the outside business activity, Almeida continued to work as a loan officer despite the firm's rejection.

This progression demonstrates multiple levels of misconduct: initially working as a loan officer without any notice to the firm; then submitting an inaccurate disclosure claiming he was not working as a loan officer when in fact he was; and finally continuing the activity after the firm rejected the outside business activity. Each step showed increasing disregard for firm policies and regulatory requirements.

The two-month suspension reflects that while Almeida engaged in undisclosed outside business activities and continued them after firm rejection, the activity as a mortgage loan officer may have had less direct potential for harm to securities customers than some other types of undisclosed activities. Nevertheless, the firm had the right to evaluate the activity and determine whether it was appropriate, and Almeida's continuation after rejection demonstrates clear disregard for firm authority.

For investors, this case illustrates that registered representatives may engage in various business activities beyond their securities employment, and these activities can create conflicts or distractions from serving securities customers. Investors should understand what other business activities their financial professionals are involved in and whether those activities might affect the advice they receive. The suspension is in effect from July 3, 2023, through September 2, 2023.