By Robert H. Rex, Esq.
Timothy Burke Ruggiero (CRD #2119642, Registered Principal, Plantation, Florida) was barred from association with any FINRA member in any capacity. The sanction was based on findings that Ruggiero engaged in intentional stock price manipulation in violation of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The findings stated that Ruggiero not only participated in the manipulative stock price scheme, but as his member firm’s President and Chief Executive Officer (CEO), was in a position to prevent the manipulation and did not do so. Ruggiero unlawfully traded in stock for two offerings during the restricted periods. Ruggiero forged initials on order tickets to evidence supervisory review of options transactions. The findings also stated that Ruggiero did not ensure that the firm had an effective system in place to retain electronic communications and he and others at the firm routinely used outside, personal email accounts, which bypassed any surveillance system the firm utilized. Ruggiero failed to retain electronic communications and failed to enforce the firm’s WSPs regarding electronic correspondence. Ruggiero failed to reasonably supervise his firm’s trading and electronic communications, and failed to adequately monitor the trading of two offerings during the restricted periods, which resulted in prohibited trading in violation of Regulation M and manipulative trading. Ruggiero failed to follow firm policies and procedures that required prior review and approval of all emails. When Ruggiero received problematic emails, he ignored red flags and abdicated his supervisory responsibility. Ruggiero also failed to ensure that the firm had a proper system to retain its email and prevent the use of outside, personal email accounts. (FINRA Case #2008011675301 )
FINRA records indicate that Ruggiero was registered with Brookshire Securities Corporation from 5/1998- 3/2009. He worked more recently with Evora Capital, Inc. and Lazarus Asset Management in Plantation, FL.