As a former financial advisor and legal expert with over a decade of experience, I’ve seen my fair share of cases where financial advisors have crossed the line and violated industry rules. The recent case of Justin Roberto, a former MML Financial Services broker who was fired for allegedly failing to follow firm policies, is a prime example of how serious these violations can be and the potential consequences for investors.
According to Roberto’s BrokerCheck report, MML Financial Services (MassMutual) fired him in October 2024 for allegedly “fail[ing] to follow to Firm policies regarding the use of unapproved sales materials and undisclosed outside business activity.” These allegations are not to be taken lightly, as they suggest Roberto may have engaged in activities that put his clients’ investments at risk.
FINRA Rule 3270 strictly prohibits brokers like Roberto from participating in unapproved outside business activities without providing prior written notice to their member firm. Violating this rule can lead to disciplinary action from the firm and potential claims from customers.
Investors need to be aware of the seriousness of these allegations and how they could affect their investments. If a financial advisor is using unapproved sales materials, they may be misrepresenting the risks or benefits of certain products. Undisclosed outside business activities can also create conflicts of interest that compromise the advisor’s ability to act in their clients’ best interests.
Justin Roberto’s Background and Experience
According to FINRA and SEC records, Justin Roberto has just one year of experience in the securities industry. He was registered as a broker with MML Investors Services in Virginia Beach from January 2023 to November 2024 before being fired. He is currently registered as an investment advisor with Tesfaye O’Neill Financial in Alexandria, Virginia.
Despite his limited experience, Roberto has passed four securities industry qualifying exams:
- General Securities Representative Examination (Series 7TO)
- Investment Company Products/Variable Contracts Representative Examination (Series 6TO)
- Securities Industry Essentials Examination (SIE)
- Uniform Combined State Law Examination (Series 66)
It’s important to note that passing these exams does not guarantee an advisor will act ethically or in their clients’ best interests. Investors should always research their advisor’s background and disciplinary history using resources like FINRA’s BrokerCheck.
Understanding FINRA Rules and Consequences
FINRA Rule 3270 is designed to prevent brokers from engaging in activities that could harm their clients or create conflicts of interest. By requiring written notice and approval for outside business activities, the rule helps ensure that firms can properly supervise their brokers and protect investors.
When brokers violate this rule, they may face serious consequences, including:
- Termination from their firm
- Disciplinary action from FINRA
- Customer claims and lawsuits
- Damage to their professional reputation
Lessons for Investors
The case of Justin Roberto serves as a reminder of the importance of thoroughly vetting your financial advisor. As the famous investor Warren Buffett once said, “Risk comes from not knowing what you’re doing.”
Before trusting someone with your hard-earned money, take the time to:
- Research their background and disciplinary history
- Ask about their outside business activities and potential conflicts of interest
- Ensure they are properly licensed and registered
- Understand the products they are recommending and the associated risks
Remember, even seemingly small red flags can be indicative of larger issues. In fact, a study by the University of Chicago found that 7% of financial advisors have been disciplined for misconduct, highlighting the need for vigilance.
If you believe you’ve been harmed by a financial advisor’s misconduct, don’t hesitate to seek legal counsel. With the right knowledge and support, you can protect yourself and hold bad actors accountable.
