← Broker database 2023-11-14
Richard DiArenzo Barred for Refusing to Provide Information and Testimony
According to FINRA, Richard DiArenzo was barred from association with any FINRA member in all capacities for refusing to provide documents and information and on-the-record testimony requested by FINRA during an investigation originated from his member firm's filing of his Form U5.
The investigation arose after DiArenzo's firm filed a Form U5 noting that he had been terminated for failure to timely disclose a reportable event. Form U5 is the Uniform Termination Notice for Securities Industry Registration that firms must file when a registered person's employment ends. When a firm terminates a representative for cause, FINRA typically investigates to determine the full facts and circumstances.
By refusing to provide documents, information, and testimony, DiArenzo prevented FINRA from fully investigating the circumstances of his termination and determining whether additional misconduct occurred or whether investors were harmed. This refusal to cooperate is itself a serious violation that warrants a permanent bar from the industry.
The permanent bar means DiArenzo can never work with any FINRA member firm in any capacity. This severe sanction reflects that cooperation with regulatory investigations is a fundamental obligation of anyone in the securities industry, and refusal to cooperate undermines the entire regulatory system designed to protect investors.
Investors should understand that they can check a financial professional's employment history and disciplinary record through FINRA BrokerCheck. When a broker has been barred for refusing to cooperate with an investigation, it raises serious concerns about what that person may have been trying to hide. Investors should always verify their financial professional's credentials and history before doing business with them.