Louis Ottimo (CRD #2606438, Syosset, New York)

August 22, 2022 – An SEC decision became final in which Ottimo (CRD #2606438) was barred from association with any FINRA member in all capacities. The SEC affirmed the sanctions imposed by the National Adjudicatory Counsel (NAC). The bar was based on findings that Ottimo fraudulently omitted material information from his biography in a private placement memorandum, in violation of Exchange Act Section 10(b), Exchange Act Rule 10b-5, and FINRA Rules 2020 and 2010. In an earlier decision, the SEC sustained FINRA’s findings that Ottimo recklessly omitted adverse information about his management of a private jet charter company he co-founded and served as CEO, and also sustained findings that he willfully failed to timely and accurately disclose several unsatisfied tax liens, civil judgments, and a bankruptcy on his Uniform Application for Securities Industry Registration or Transfer (Form U4).

The SEC, however, set aside FINRA’s findings that Ottimo’s omissions of negative information regarding another company he previously owned constituted fraud and remanded the case to FINRA to reconsider the sanctions. On remand, the NAC determined that barring Ottimo in all capacities remained appropriate given his serious misconduct. The SEC affirmed the NAC’s decision, finding that numerous aggravating factors, and no mitigating ones, supported imposing the bar and concluding that barring Ottimo was neither excessive nor oppressive but instead, served a remedial purpose. (FINRA Case #2009017440201)