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Mr. Correnti was terminated by AXA in July 2016 as the result of allegations concerning market manipulation. The manipulation concern certain low-priced investments that were traded over-the-counter. This is a serious type of securities fraud. Such investments are easy to manipulate by a broker because they generally have a low volume of trading. If a broker can get several of clients in a short time period or have one client make a significantly large purchase he can artificially inflate the price. The problem from market manipulation generally comes in that the broker trades in his own account ahead of the purchase, sells once the price is artificially inflated and then the investment crashes since no other investors are available to keep the price inflated, though it is unclear if Correnti directly profited from the alleged market manipulation. Notwithstanding, a violation may exist even if the broker does not directly profit as either a fraud on the market or by the damage the broker causes the investor/customer.
FINRA sought to investigate Correnti for these allegations and allegations that he was intentionally selling investments to his customer/investors beyond the supervision of AXA compliance and managers. Correnti, at the regulatory hearing, chose to stop his testimony and, as a result, stopped contesting the charges. He was then expelled from the securities industry by FINRA.