According to FINRA, an Office of Hearing Officers (OHO) issued a decision on August 4, 2023, barring Suzanne Marie Capellini from association with any FINRA member in all capacities. No other sanctions were imposed because of the bar. Capellini appealed the decision to the National Adjudicatory Council (NAC), so the sanction is not in effect pending review.

The OHO found that Capellini provided false and misleading responses and an altered document to FINRA in response to its requests related to low-priced securities trading activity in accounts held by her husband at her member firm. The evidence demonstrated that Capellini altered one document before providing it to FINRA by jaggedly cutting off the bottom almost three-quarters of an inch of each page of the form provided. Capellini also acted intentionally to mislead FINRA and continued to disavow responsibility for her actions even up through the hearing.

The OHO also found that Capellini failed to establish and implement an anti-money laundering (AML) program reasonably designed to cause the detection and reporting of suspicious low-priced securities activity under the Bank Secrecy Act (BSA). Capellini failed to detect or investigate many red flags of suspicious activity in a customer's account, some of which may have been reportable.

While trading in low-priced securities was a tiny fraction of her firm's overall business, Capellini's failures were systemic and widespread, encompassing all low-priced securities activity at the firm. In addition, Capellini's misconduct led to the potential for her own monetary gain because her husband used nearly $400,000 in low-priced securities proceeds for their household living expenses, such as rent and tuition. Capellini's misconduct demonstrated a lack of understanding of the AML rules and her duties as an anti-money laundering compliance officer (AMLCO) and compliance professional.

Providing false information and altered documents to FINRA is among the most serious violations a securities professional can commit. It undermines the entire regulatory process and makes it impossible for FINRA to effectively investigate potential misconduct and protect investors. The fact that Capellini altered documents by physically cutting off portions before providing them to FINRA demonstrates a deliberate attempt to conceal information from regulators.

Anti-money laundering programs are critical tools in combating financial crimes and preventing the securities markets from being used for money laundering. Broker-dealers are required by the Bank Secrecy Act to establish and implement AML programs reasonably designed to detect and report suspicious activity. As the firm's AMLCO, Capellini had primary responsibility for the firm's AML program.

Low-priced securities, often called penny stocks, are frequently used in money laundering schemes and fraudulent pump-and-dump schemes. AML programs must be designed to detect red flags of suspicious activity in low-priced securities trading, such as unusual trading patterns, rapid liquidation of positions, or deposits of large quantities of low-priced securities.

Capellini's failure to detect or investigate red flags of suspicious activity in her husband's accounts is particularly concerning because it suggests a conflict of interest may have influenced her performance of AML duties. The fact that her husband used nearly $400,000 in proceeds from low-priced securities for household expenses creates the appearance that she may have personally benefited from the failure to investigate and report suspicious activity.