Husband of ‘Real Housewife’ in hot water with securities regulator

A case of naked short selling has put a California advisor – and reality show celeb--on the wrong side of a big fine

David Gebbia is increasingly well-known as the husband of a Beverly Hills Housewife, but a massive fine for his broker-dealer firm is winning him notoriety in his own right.
Beverly Hills broker-dealer StockCross Financial Services Inc. has agreed to an $800,000 fine from Finra for failing to properly monitor its short sale procedures. While not admitting any guilt regarding Finra’s allegations, it has agreed to live by the regulator’s findings.
The case has thrust StockCross principal Gebbia into the spotlight … again.
He, along with his wife Carlton, appeared on the fourth season of Bravo TV’s Real Housewives of Beverly Hills. The Gebbias were fired from the show in May 2014 but are rumoured to be returning. He may now have other things on his mind.
On at least 4,000 occasions Finra’s Department of Market Regulation found that StockCross neglected to borrow or arrange to borrow the shorted stock prior to effecting a short sale in clear violation of the SEC’s “pre-borrow” requirements under SEC Rule 204(b) of Regulation SHO and FINRA Rule 2010.
"Securities regulations require that after a sales transaction is complete, firms deliver the shares transacted to a clearing firm for settlement,” Finra said in its press release. “If the shares are not delivered by the appropriate date, SEC’s Reg SHO requires the firm to take affirmative action to close out the failure to deliver by purchasing or borrowing the securities.”
With that kind of money you’d think he’d be able to pay for proper supervisory systems.