← Broker database 2024-09-11
Giovanni Perez Suspended by FINRA for Failing to Disclose Felony Charge
According to FINRA, Giovanni Perez (CRD #7742375), a registered representative based in Naples, Florida, was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for four months. Without admitting or denying the findings, Perez consented to the sanctions and to the entry of findings that he willfully failed to disclose on his Form U4 that he had been charged with a felony. The findings stated that Perez was arraigned for a third-degree felony, among other charges, in Florida state court. Perez was aware of the charges against him. On a Form U4 filed approximately 18 months later for the purpose of registering with FINRA through association with a member firm, Perez falsely answered "no" to a disclosure question that asked whether he had ever been charged with any felony. As a result, Perez caused inaccurate and misleading information to be filed with FINRA. The suspension was in effect from September 16, 2024, through January 15, 2025. This case involves one of the most fundamental obligations of a registered representative: the duty to provide truthful and complete information on their Form U4. The Form U4 is the Uniform Application for Securities Industry Registration, and it is the primary document through which brokers disclose their backgrounds to regulators, firms, and ultimately the investing public. The disclosure questions on the Form U4 cover criminal history, regulatory actions, civil judgments, customer complaints, and financial matters such as bankruptcies. These disclosures exist so that firms and regulators can evaluate whether an individual is fit to serve in the securities industry and so that investors can make informed decisions about whom they trust with their money. When Perez willfully answered "no" to the question about felony charges, he deprived his firm, FINRA, and potential customers of material information about his background. The word "willfully" is significant in this context because it means FINRA found that Perez knew about the charges and deliberately chose not to disclose them. A willful failure to disclose on a Form U4 can also result in statutory disqualification, which is a more severe consequence that can effectively bar an individual from the securities industry. For investors, this case reinforces why checking FINRA BrokerCheck is so important before working with a financial professional. Disciplinary actions like this one are recorded and made available to the public, providing transparency that helps you make informed decisions about your financial advisors.