NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Stephen Nicholas Severio
AWC/2008015083301

Severio solicited customers at his member firm to invest in a purported arbitrage investment which he stated would be held away from his firm. Severio told these clients that he would invest their funds and pay them the principal amount invested plus interest of 15 percent to 20 percent after six months. Each of the customers gave Severio a check personally made out to him in amounts ranging from $5,000 to $75,000 for a total of $685,653, with the intention that he invest the money in his arbitrage investment as he indicated.  However, Severio cashed the checks and converted the money for his own personal use.

Severio failed to respond to FINRA’s requests for information and failed to appear for his on-the-record testimony.

Stephen Nicholas Severio : Barred

Tags: Conversion