Former Aegis Broker Joseph Giordano Suspended After Allegations He Permitted Excessive and Unsuitable Trading
Joseph Giordano (CRD#: 2278341) is a registered Broker at Acceptus Capital Corp. in Port Washington, NY.
He entered the securities industry in 1993 and previously worked for Gunnallen Financial, Inc.; LH Ross & Company, Inc.; Citigroup Global Markets, Inc.; Lumiere Securities, Inc.; Taj Global Equities, Inc.; Sovereign Equity Management Corp.; A.T. Brod & Co., Inc.; and Camelot Investment Corp.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2021, FINRA sanctioned Joseph Giordano with a civil and administrative penalty/fine of $10,000, and a suspension from any principal capacity for six months beginning December 6, 2021 and ending June 5, 2022; in addition, Joseph Giordano will attend and satisfactorily complete 20 hours of continuing education related to supervisory responsibilities. The FINRA sanction states, “Without admitting or denying the findings, Giordano consented to the sanctions and to the entry of findings that he failed to reasonably supervise his member firm’s registered representatives who worked in one of its branch offices. The findings stated that as a designated supervisory principal, Giordano was presented with but did not respond to multiple red flags identifying potentially excessive and unsuitable trading in customer accounts managed by the representatives, including, among others, exception reports generated by the firm’s clearing firm. As a result, the firm representatives engaged in excessive and unsuitable trading in customer accounts, generating combined customer costs (including commissions, markups or markdowns, margin interest and fees) of more than $2.6 million, and cumulative losses of $4 million.”
For a copy of the FINRA sanction, click here.
In addition, Joseph Giordano has been the subject of one disclosure, including the following:
- October 2007 – “NASD RULES 2110 AND 3010: DURING THE PERIOD BETWEEN JANUARY 2005 AND MARCH 2005, GIORDANO FAILED TO PROPERLY SUPERVISE A REGISTERED REPRESENTATIVE WHO ENGAGED IN PENNY STOCK TRANSACTIONS FOR PUBLIC CUSTOMERS WITHOUT SATISFYING REQUIRED PENNY STOCK DISCLOSURE REQUIREMENTS.” Joseph Giordano was sanctioned with a civil and administrative penalty/fine of $7,500, and suspended from any principal capacity for ten business days from November 5, 2007 to November 16, 2007. For a copy of the FINRA sanction, click here.
For a copy of Joseph Giordano’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
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.
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.
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