Broker Ron Filoramo Barred After Fraudulent Induction Allegation

Ron Filoramo (Ronald Ernest Filoramo CRD# 3270398) is a former broker and investment advisor last employed with Morgan Stanley (CRD# 149777) of Fort Lauderdale, FL. His previous employers include Wells Fargo Advisors, LLC (CRD# 19616) of Hallandale, FL, UBS Financial Services Inc. (CRD# 8174) of Weehawken, NJ, and Ladenburg Capital Management Inc. (CRD# 14623) of Bethpage, NY. He has been in the industry since 1999.

Filoramo’s most recent employer, Morgan Stanley, terminated his employment on 05/01/2023. In the Uniform Termination Notice for Securities Industry Registration (Form U5,) dated 03/31/2023, Morgan Stanley acknowledged that Filoramo was discharged after allegations that he “fraudulently induced clients to transfer funds to purported investments that were never made.”

This discharge follows four successive customer disputes from March 30 through April 20 all with similar allegations of persuading customers to transfer funds to alleged outside investments that were unlocatable and ultimately never made:

3/30/2023, $335,850.00
4/14/2023, $172,133.75
4/14/2023, $290,000.00
4/202023, $62,000.00

Following Filoramo’s discharge from Morgan Stanley, FINRA began an investigation into his recent activities. As part of that investigation, FINRA sent letters to Filoramo requesting specific documents and information related to the allegations and his discharge from Morgan Stanley. The first letter was sent on May 17, 2023 and the second on June 2, 2023. Filoramo failed to respond to both.

On August 9, 2023, Filoramo’s attorney responded to FINRA, acknowledging receipt of both requests for information. His counsel stated that Filoramo would not cooperate with FINRA at any time. Failure to respond to these requests violates FINRA Rules 8210 and 2010. Following his decision not to respond, FINRA permanently barred Filoramo from association with any FINRA broker dealer.

What Happens To Barred Brokers?

Once a broker is barred by FINRA, they are no longer allowed to be affiliated in any capacity with a FINRA member firm. This includes non-broker jobs such as administrative or accounting work.

FINRA bars brokers for “egregious conduct,” generally, theft from a customer or other serious infractions. An “8210 Request” is for information regarding an official FINRA investigation. Failure to respond, like Filoramo did, leads to a bar from FINRA affiliation.

FINRA’s BrokerCheck website allows anyone to search for a broker’s record. There, you’ll see the broker’s entire record for as long as they were registered with a firm. Once a broker is no longer registered with any firm following a FINRA arbitration or other disciplinary action that ends their career, the record ends there.

Everything is still available from their FINRA registration. The broker stays under FINRA’s jurisdiction for as long as two years after their registration ends. They aren’t allowed to ignore FINRA investigations just because they are no longer registered brokers.

After their career as a broker is suspended or terminated, they often do something related that isn’t under FINRA’s oversight, such as sell insurance.

Many barred brokers go to work as registered investment advisors (RIA) or move into insurance sales. Others find different areas of securities and financial services. But a broker who’s been sanctioned may move to another broker dealer even if he or she was terminated by their prior employer. That’s why checking with BrokerCheck and other due diligence is so important when investing with someone new.

Did You Invest With Ron Filoramo?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.