SEC Bars Former Broker for Concealing Assets in Bankruptcy Case
The Securities and Exchange Commission has barred former broker Stephen Douglas Pizzuti after he pled guilty to concealing assets in a bankruptcy case.
The Securities and Exchange Commission has barred former broker Stephen Douglas Pizzuti after he pled guilty to concealing assets in a bankruptcy case.
At the time of the alleged misconduct that led to his conviction, Pizzuti was associated with Freedom Investors Corp, according to his BrokerCheck profile.
Pizzuti admitted that in October 2015, he and his wife filed a joint Chapter 7 bankruptcy petition that failed to identify his book of business as an asset. The following month, he purportedly sold his book of business for $300,000 consisting of an immediate partial payment, with the balance due over time.
The SEC claims that at a creditor’s meeting, Pizzuti, while under oath, falsely represented that he had not transferred or sold any assets beyond what was disclosed in the bankruptcy petition. Over the course of a year, he received more than $28,000 from the buyer of the book of business, which he allegedly concealed by receiving the funds in cash or in the form of wire transfers to his wife and son.
In November 2019, Pizzuti pled guilty to one count of concealment of assets in a bankruptcy case and was later sentenced to two years of probation. The court also ordered forfeiture and restitution, both in the amount of $28,000.
Between January 1986 and May 2015, Pizzuti was associated with a number of broker-dealers, some of which were also registered as investment advisers. Prior to his bar, he held FINRA Series 7, 24, and 63 licenses.
