Jason Lynn DiPaola (CRD #2648836, Babylon, New York)

Jason Lynn DiPaola (CRD #2648836) appealed a NAC decision to the SEC. DiPaola was fined a total of $40,000 and suspended from association with any FINRA member in all capacities for four years. The NAC affirmed the findings and modified the sanctions imposed by the OHO. The sanctions were based on the findings that DiPaola failed to disclose an outside account in which he exercised discretionary trading authority, submitted false and misleading compliance forms to his employer, and failed to provide on-the-record testimony. The findings stated that Jason Lynn DiPaola exercised discretionary authority in his mother’s account, held outside of his member firm, without disclosing the existence of the account to his firm or disclosing his status as an associated person of his firm to the executing firm. The findings also stated that DiPaola provided false and misleading responses on his firm’s compliance questionnaires and certification forms when he disclosed only his own accounts on the firm’s compliance questionnaires and did not list his mother’s account, despite exercising control over his mother’s account. The findings also included DiPaola’s failure to participate in on-the-record testimony requested by FINRA in connection with its investigation into his trading activity, including whether he improperly traded in his mother’s account without providing the requisite disclosures and whether he engaged in other types of violations, such as insider trading or market manipulation. Jason Lynn DiPaola testified in three on-the-record interviews but failed to respond to further requests for on-the-record testimony to cover additional areas of inquiry, such as his involvement with the issuer of a security frequently traded in his outside accounts and specific transactions investigators believed may have violated securities laws. The sanctions are not in effect, pending the review. (FINRA Case #2018057274302)