Brokerage Industry Disciplinary Action Report: July 2019
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
For our part, we like to pick out some of the highlights from each report. Specifically, we’re looking for schemes or abuses that might be more far-reaching than the individual cases brought through the FINRA arbitration process.
Brokers & Brokerages Barred, Suspended, and/or Fined by FINRA
Windsor Street Capital, LP fka Meyers Associates, L.P. (CRD® #34171, New York, New York), Edwin Alberto Rodriguez (CRD #4710962, Bronx, New York) and Arthur J. Tacopino (CRD #2455892, Manalapan, New Jersey) June 25, 2019 –
An Office of Hearing Officers (OHO) decision became final in which the firm was expelled from FINRA® membership, fined $1,000,000, ordered to pay $61,559.02, plus interest, in restitution to customers and ordered to pay disgorgement in the amount of $256,550. Rodriguez was barred from association with any FINRA member in all capacities. Tacopino was barred from association with any FINRA member in all capacities and ordered to pay disgorgement in the amount of $417,368.71. The sanctions were based on the findings that Tacopino willfully violated Section 10(b) of the Securities Exchange Act of 1934, Exchange Act Rule 10b-5 and FINRA Rules 2020 and 2010 and by the same conduct, acted in contravention of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933 by knowingly or recklessly orchestrating for his own personal benefit a fraudulent stock allocation scheme whereby he placed trades in firm accounts, monitored the performance of the trades and allocated profitable trades to his or favored employees’ accounts, and left unprofitable trades in the firm accounts or allocated them to customer accounts.
Citigroup Global Markets Inc. (CRD #7059, New York, New York)
Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to identify and apply sales charge discounts to certain eligible purchases of unit investment trusts (UITs).
Crown Capital Securities, L.P. (CRD #6312, Orange, California)
Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain a supervisory system, including WSPs, for reviewing and monitoring mutual fund switches reasonably designed to achieve compliance with FINRA suitability requirements and failed to reasonably supervise short-term switches of Class A mutual fund shares conducted by two firm registered representatives.
Nicolas Jesus Barrios (CRD #2122824, Lakeland, Florida)
Without admitting or denying the findings, Barrios consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA in connection with its investigation into allegations that he mismanaged and committed fraud with respect to a customer’s account.
Nina Sue Jessee (CRD #1484808, Abingdon, Virginia)
Without admitting or denying the findings, Jessee consented to the sanction and to the entry of findings that she failed to appear for onthe-record testimony requested by FINRA in connection with its investigation of customer complaints related to alternative investments and allegations that she failed to disclose an outside business activity.
Rand Alan Heckler (CRD #2689235, Glen Cove, New York)
Without admitting or denying the findings, Heckler consented to the sanction and to the entry of findings that he failed to provide documents and information, and refused to appear for on-the-record testimony, requested by FINRA in connection with its review of a customer complaint alleging unsuitable recommendations, misrepresentations and possible misappropriation.
John Anthony Vedovino (CRD #6113995, Pompton Plains, New Jersey)
Vedovino was barred from association with any FINRA member in all capacities and ordered to pay $3,391.98, plus interest, in restitution to an affiliated bank of his member firm, offset by any documented payments to it that he has made. The sanctions were based on findings that Vedovino converted funds from the bank.
Daniel M. Soliman (CRD #6053300, Staten Island, New York)
Without admitting or denying the findings, Soliman consented to the sanction and to the entry of findings that he failed to appear and provide on-the-record testimony requested by FINRA in connection with its investigation into his trading in customers’ accounts to determine whether he was engaged in conduct that violated federal securities laws or regulations or FINRA rules.
For the full FINRA Disciplinary Report, please click here.
