Securities Arbitration Lawyer Blog
FINRA has filed an enforcement complaint against former Chardan Capital Markets LLC broker Jason Lynn DiPaola (CRD#: 2648836). Mr. DiPaola has 20 years of experience in the securities industry and was most recently registered as a broker with Chardan Capital Markets LLC in New York, NY, from May 2013 to May 2019.
If you have lost money with Jason Lynn DiPaola, or Chardan Capital Markets LLC, contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Enforcement Allegations
The FINRA complaint, which was filed on May 3, 2021, alleges that from March 2015 to March 2017, Mr. DiPaola exercised discretion and controlled the trading in his mother’s brokerage account, which she held at another broker-dealer. At the time, Mr. DiPaola was associated with Chardan Capital Markets, LLC and failed to disclose this account to his firm.
Further, Mr. DiPaola, acting with control and discretion over his mother’s account at the other broker-dealer, purchased and sold tens of millions of shares of Advanced Medical Isotope Corporation (“AMIC”). AMIC’s common stock traded under the ticker “ADMD” and was listed on OTC Pink, the most speculative of the three OTC stock tiers. Mr. DiPaola failed to disclose to the other broker-dealer that he was exercising discretion and control over the trading in this account while associated with Chardan Capital Markets, LLC.
In October 2016, AMIC engaged Chardan Capital Markets, LLC to provide advice on an investor relations program, introduce AMIC to potential investors, and perform other mutually agreed upon services. Following this engagement, through March 31, 2017, Mr. DiPaola sold millions of shares of ADMD in his mother’s account, and he also purchased hundreds of thousands of ADMD shares in this undisclosed account.
Mr. DiPaola also submitted false and misleading employee compliance questionnaire and certification forms to Chardan Capital Markets, LLC in May 2016 and November 2016. In these forms, Mr. DiPaola failed to disclose the existence of his mother’s account at the other broker-dealer when he was asked to identify all securities accounts which he controlled.
Mr. DiPaola failed to appear and to provide testimony that FINRA requested pursuant to FINRA Rule 8210 on two separate occasions in April 2021, in violation of FINRA Rules 8210 and 2010.
FINRA Rules 8210 and 2010
For purposes of an investigation, under FINRA Rule 8210(a), FINRA may require any person subject to its jurisdiction to provide information “orally, in writing, or electronically.” A person who fails to provide the requested information violates the Rule.
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Jason Lynn DiPaola, or Chardan Capital Markets LLC, contact FINRA arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.