According to FINRA, Vincent William LaBarbara was fined $5,000 and suspended from association with any FINRA member firm in all capacities for two months for entering into a lending arrangement with a customer without providing notice to or obtaining approval from his member firm.

LaBarbara's customer, who was a long-time friend and real estate lawyer, offered to assist LaBarbara with a home purchase. The customer obtained a mortgage, and the funds were used to make a home purchase on LaBarbara's behalf. In return, LaBarbara agreed to make all payments due on the customer's mortgage.

Subsequently, the customer transferred title to the house to LaBarbara after about two years when approximately $300,000 remained due on the mortgage. LaBarbara has timely made all payments due on the mortgage.

FINRA rules generally prohibit registered representatives from entering into lending arrangements with customers unless the customer is a family member, the lending is done through the customer's business, or the customer is a registered person. These restrictions exist because lending arrangements can create conflicts of interest and may be used to facilitate misconduct.

Even though LaBarbara's arrangement with his customer friend was personal in nature and no harm appears to have resulted, the failure to disclose it to the firm violated FINRA rules.

The suspension is in effect from January 21, 2025, through March 20, 2025.