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FINRA Sanctioned Broker Palmery Desir For Alleged Excessive Trading

Palmery Desir (CRD#: 5559016), also known as Paul Desir, is a registered Broker at Richfield Orion International, Inc. in Huntington, NY.

Broker’s Background

He entered the securities industry in 2008 and previously worked for Joseph Stone Capital, LLC; Rothschild Lieberman, LLC; Craig Scott Capital, LLC; Brookstone Securities, Inc.; and JHS Capital Advisors, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in May 2022, FINRA sanctioned Palmery Desir with a civil and administrative penalty/fine of $5,000, and a suspension of four months from all capacities beginning June 21, 2022 and ending October 20, 2022. The FINRA sanction states, “Without admitting or denying the findings, Desir consented to the sanctions and to the entry of findings that he excessively and unsuitably traded one customer’s account. The findings stated that the customer’s account had an average equity of approximately $700,000, and Desir recommended that the customer place trades in his account with a total principal value of $3,860,000. The customer relied on Desir’s advice and accepted his recommendations. Collectively, Desir’s recommended trades caused the customer to pay over $134,900 in commissions and other trading costs, which resulted in an annualized cost-to-equity ratio of 20 percent – meaning that the customer’s account would have had to grow by more than 20 percent annually just to break even.”

For a copy of the FINRA sanction, click here.

In addition, Palmery Desir has been the subject of two customer complaints, including one that remains pending, including the following:

  • December 2021 — “Vague claims of transactions conducted at instructions of client and commissions charged.” The customer dispute is pending. Damages of $5,000 are requested.
  • August 2012 — “CLIENT ALLEGES THAT THE ACCOUNT EXECUTIVE FAILED TO FOLLOW INSTRUCTIONS IN THAT HE FAILED TO SELL CERTAIN SECURITIES IN THE CLIENT’S ACCOUNT AS WELL THE AE, AGAINST THE WISHES OF THE CLIENT, UTILIZED MARGIN TO REMIT FUNDS TO THE CLIENT. BECAUSE OF THIS AND OTHER ACTIONS BY THE AE, THE CLIENT CLAIMS TO HAVE INCURRED LOSSES.” The customer dispute was denied.

For a copy of Palmery Desir’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]