FINRA Broker Disciplinary Action Report: June 2020
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
Patrick M. Coogan (CRD #4576580, Baton Rouge, Louisiana)
Without admitting or denying the findings, Coogan consented to the sanction and to the entry of findings that he made reckless misrepresentations of material fact in agreements he signed in connection with loans his customer obtained from multiple banks. The findings stated that the customer pledged assets in the customer’s brokerage account as collateral for the loans, which together had a principal amount of well-over one million dollars.
Erik Patrick Pica (CRD #4829533, Brooklyn, New York) April 6, 2020
Pica was barred from association with any FINRA member in all capacities and ordered to pay a customer $200,000 in restitution, plus interest. The sanctions were based on findings that Pica converted $200,000 from an elderly customer by depositing the customer’s check into his personal bank account when the customer intended the check to be deposited into his brokerage account at Pica’s member firm. The findings also stated that Pica misused and commingled the customer’s funds by using the funds to pay the down payment and closing costs for the purchase of a home.
Ollisha H. Taylor (CRD #6737330, Pearland, Texas)
Without admitting or denying the findings, Taylor consented to the sanction and to the entry of findings that she refused to provide information and documents requested by FINRA in connection with its investigation into whether she converted funds from her member firm.
Steven Jun Lu (CRD #6856088, Glendora, California)
Without admitting or denying the findings, Lu consented to the sanction and to the entry of findings that after meeting an elderly retiree living alone and exhibiting signs of dementia, he entered into a power of attorney with her naming him as attorney-in-fact with broad powers over her financial affairs and appointing him as co-trustee over her assets, in violation of his member firm’s WSPs. The findings stated that in the trust agreement, Lu was also named as the beneficiary of 75 percent of the individual’s estate.
Charles James Euler Jr. (CRD #202696, Villanova, Pennsylvania)
Without admitting or denying the findings, Euler consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation into whether he made unsuitable recommendations.
Karen Denise Clark-Kocinski (CRD #3169298, Norfolk, Virginia)
Without admitting or denying the findings, Clark-Kocinski consented to the sanction and to the entry of findings that she refused to appear for on-the-record testimony requested by FINRA in connection with its investigation into whether or not she misused her insurance customers’ funds.
Louis Ottimo (CRD #2606438, Syosset, New York)
Ottimo was barred from association with any FINRA member in all capacities. The NAC imposed the sanction following an SEC remand order to reconsider the sanctions. The bar was based on findings that Ottimo wilfully violated Section 10(b) of the Securities Exchange Act of 1934, Exchange Act Rule 10b-5, and FINRA Rules 2020 and 2010 by fraudulently omitting material information in his private placement memorandum (PPM) biography in the offer and sale of securities related to a private jet charter company he co-owned.
For the full FINRA Disciplinary Report, please click here.
