Ronald Pellegrino (CRD # 832857, Registered Principal, Bellingham, Washington) was barred from association with any FINRA member firm in any principal capacity. The SEC sustained the sanction following appeal of a National Adjudicatory Council (NAC) decision. The sanction was based on findings that Pellegrino, acting on a member firm’s behalf, failed to develop an adequate supervisory system reasonably designed to achieve compliance with applicable securities laws, regulations and NASD Rules, and ignored “red flags” that should have resulted in additional supervisory scrutiny. The findings stated that Pellegrino’s supervisory failures resulted in firm registered representatives making unsuitable recommendations and misleading customers as to the risks of proprietary products over an extended time. The findings also stated that Pellegrino facilitated the representatives’ misconduct by promoting sales to firm customers rather than improving compliance. The findings also stated that Pellegrino failed to enforce the firm’s written supervisory procedures regarding suitability determinations, and failed to take reasonable steps to monitor and have the firm perform appropriate individual suitability determinations based on each investor’s personal financial needs as prescribed in the firm’s supervisory and compliance manuals rather than solely on suitability guidelines.