FINRA Bars Jeffrey Kenneth Galvani and Stuart A. Jeffery for Refusing Testimony in Penny Stock Investigation
The Financial Industry Regulatory Authority (FINRA) has barred Jeffrey Kenneth Galvani (CRD #3048728) of Hoboken, New Jersey, and Stuart A. Jeffery (CRD #5241790) of Rockville Centre, New York, from associating with any FINRA member firm in any capacity after they refused to provide on-the-record testimony during a regulatory investigation.
On January 12, 2026, an Office of Hearing Officers (OHO) decision became final under FINRA Case #2020068865301.
Investigation into Outside Entities and Penny Stock Activity
According to FINRA’s findings, the investigation focused on Galvani’s and Jeffery’s roles with outside entities that provided services to customers trading low-priced securities, commonly referred to as penny stocks.
Penny stocks are often associated with higher volatility and increased risk, and activities involving outside entities connected to such trading may raise regulatory concerns—particularly when those activities are not properly disclosed to a broker’s member firm.
FINRA also examined whether both individuals adequately disclosed their involvement with these outside entities to their firms, as required under industry rules governing outside business activities.
Refusal to Provide On-the-Record Testimony
As part of its investigation, FINRA requested that both Galvani and Jeffery appear for on-the-record testimony.
Under FINRA Rule 8210, registered individuals are required to provide testimony, documents, and information when requested during investigations. According to the findings, both individuals refused to provide the requested testimony.
Failure to comply with a Rule 8210 request is considered a serious violation because it obstructs FINRA’s ability to investigate potential misconduct and assess risks to investors.
As a result of their refusal to cooperate, both Galvani and Jeffery were permanently barred from associating with any FINRA member firm in all capacities.
Risks of Undisclosed Outside Activities in Penny Stock Markets
Undisclosed involvement with outside entities—especially those connected to penny stock trading—can expose investors to heightened risks, including market manipulation, lack of transparency, and speculative investments.
FINRA requires brokers to disclose outside business activities so firms can supervise and evaluate potential conflicts of interest and investor risks.
Silver Miller Represents Victims of Broker Misconduct
If you invested in penny stocks or were involved with brokers who participated in undisclosed outside activities, you may have the right to pursue recovery.
Silver Miller represents investors nationwide in claims involving selling away, undisclosed outside business activities, unsuitable investments, and other forms of broker misconduct. Our attorneys pursue recovery through FINRA arbitration and civil litigation.
Contact Silver Miller for a free, confidential consultation. We work on a contingency fee basis—meaning you pay nothing unless we recover for you.
