Florida Broker Fined and Suspended for Undisclosed Outside Business Activities
Benjamin J. Rosamond (CRD #: 5282092) is a previously registered securities broker. From October of 2020 to May of 2023, Mr. Rosamond was a representative of Robinhood Securities, LLC in Lake Mary, Florida. In May of 2023, Mr. Rosamond was discharged by the brokerage firm for undisclosed outside business activities. The Financial Industry Regulatory Authority (FINRA) has now completed its investigation into the matter. Benjamin J. Rosamond has been fined and suspended for violating FINRA Rule 3270. Here, our Miami selling away attorney discusses the allegations and the enforcement action taken by FINRA.
Broker Sanctions: Benjamin J. Rosamond Formerly of Robinhood Financial, LLC
Benjamin J. Rosamond was terminated by Robinhood Financial, LLC in 2023. The discharge came after allegations that he engaged in improper undisclosed outside business activities (OBAs). When a registered representative is terminated or permitted to resign, that information must be shared with FINRA. Depending on the circumstances, the agency may open an investigation into the matter. On January 14th, 2025, FINRA announced the findings regarding its investigation into this broker.
In the Letters of Acceptance, Waiver, and Consent with Mr. Rosamond, FINRA confirmed the allegations that the broker worked with an investment entity that was established as a limited liability company (LLC) without providing prior written notice to his member firm. A violation of FINRA Rule 3270. In total, Mr. Rosamond reportedly made 400 trades totaling approximately $500,000 in securities during these unapproved outside business activities.
Without admitting or denying any of the specific allegations raised against him, the former Robinhood Financial, LLC broker consented to FINRA’s proposed penalties. Specifically, he accepted a four month suspension from the securities industry and a $7,500 fine.
An Overview of FINRA Rule 3270
Broker-dealers are responsible for providing oversight of all registered representatives and any associated persons. FINRA regulations required licensed brokers to get approval from their member firm before engaging in any outside business activities.
More specifically, under FINRA Rule 3270, brokers are required to provide prior written notice to their firm before engaging in any business activity outside their role at the firm. Notably, it applies regardless of whether the OBA is compensated or uncompensated.
Once a disclosure is made, the firm has a duty to assess whether the OBA creates conflicts of interest or any other type of unacceptable risk for its customers. Indeed, broker-dealers are responsible for reviewing and, if necessary, placing conditions or prohibitions on these activities.
Consult With Our Miami, FL Securities Fraud Lawyer Today
At Carlson & Associates, P.A., our Miami securities fraud attorney is a knowledgeable and experienced advocate for investors. If you suffered losses because of your broker’s undisclosed outside business interests, we are here to help. Our firm handles the full range of cases related to outside business activities, including private placements. Contact us today for a confidential initial case review. We represent investors in Miami and throughout Florida.
Source:
brokercheck.finra.org/individual/summary/5282092