Rani Soto, Formerly of Prudential Investment Management, Named in FINRA Complaint Alleging Failure to Disclose Outside Business Activities

The complaint alleged that Soto withheld the information because he feared termination.

The Sonn Law Group is investigating allegations that Rani Soto engaged in undisclosed outside business activities. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Rani Soto (CRD#: 6016117) was registered as a broker with Prudential Investment Management from 2016 until 2018. In August 2020, Soto was named in a complaint filed by FINRA, alleging that he failed to disclose outside business activities to his member firm prior to engaging in the activities. 

The complaint alleged that Soto did not disclose these activities, in part, because he was afraid he would be terminated. Soto allegedly  received, or expected to receive compensation from multiple businesses and a rental property. Soto also was the sole member of the Board of Trustees for one business. Each of these business activities took place outside of the scope of his relationship with the firm. 

The complaint also alleged that Soto made false statements to the firm in documents concerning his participation in the outside business activities. FINRA claimed that Soto falsely attested on annual compliance questionnaires for his firm that he had not held any paid or unpaid positions at an outside business in the past year. In addition, Soto never updated his Form U4 to disclose his outside business activities. Nevertheless, Soto falsely affirmed on annual Form U4 attestations to the firm that the information on his Form U4 was complete, accurate and up-to-date. 

Further, the complaint alleges that throughout FINRA’s investigation of this matter, Soto failed to timely and completely respond to its requests for documents and information. Soto’s failure to respond to its requests caused significant delay to FINRA’s investigation into the firm’s termination of Soto. Soto’s failures ultimately led to the initiation of a proceeding against Soto pursuant to FINRA Rule 9552 and subsequently his suspension.

Three days before his suspension would have converted to an all capacities bar, Soto made a partial production of documents to FINRA that lifted his suspension. After the suspension was lifted, Soto failed to timely and completely respond to additional requests issued to him by FINRA. Among other things, Soto failed to provide complete bank records and tax returns to FINRA.

Soto has three other disclosures on his BrokerCheck report.

July 2020 Investigation

• Initiated By: FINRA
• Description of Investigation: FINRA Case #20180597667: On July 17, 2020, FINRA made a preliminary determination to recommend that disciplinary action be brought against Rani Soto alleging violations of FINRA Rules 3270 and 2010 in that Soto failed to provide prior written notice to his member firm of outside businesses prior to being compensated by, or having a reasonable expectation of compensation from them; and violation of FINRA Rules 8210 and 2010 in that Soto failed to timely respond to requests for documents and information related to an ongoing investigation.

August 2018 Employment Separation After Allegations

• Firm Name: Prudential Investment Management Services, LLC
• Termination Type: Discharged
• Allegations: The representative was terminated, in part, due to failure to disclose outside business activities (i.e., service in not-for-profit advocacy organizations)

October 2016 Financial Judgment

• Status: Final
• Type: Bankruptcy
• Disposition: Discharged

Contact Us Today

The Sonn Law Group is currently investigating allegations that Rani Soto engaged in undisclosed outside business activities. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.