- March 25, 2020
- SCF Securities
Peter Orlando (CRD # 1142715) was a Financial Advisor at SCF Securities, Inc. in Fall River, MA. Peter Orlando has been in the securities industry since 1983 and previously worked for a number of brokerage firms, including MetLife Securities, Morgan Stanley, Investors Capital, Schneider Securities and Prudential Securities.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on March 16, 2020, FINRA barred Peter Orlando indefinitely from acting as a broker or associating with any brokerage firm based on allegations that he improperly obtained control over the finances of his 81-year old widow customer. According to the FINRA Sanction:
“The complaint alleges that Orlando obtained a durable power of attorney (durable POA) and a health power of attorney (health POA) over the customer. Orlando used his position of trust to become the executor of the customer’s will, named as the beneficiary of her bank account, and named as the primary beneficiary of her will, with his wife named as a contingent beneficiary. Orlando failed to disclose these arrangements to the firm, which prohibited its representatives from serving in a fiduciary capacity for, or its representatives named as the beneficiary of the account of, anyone other than a family member. The complaint also alleges that Orlando advised the customer to surrender a variable annuity (VA) she held with the firm, claiming that she needed to do so in order for him to assist her with personal financial matters. Orlando recommended that the customer surrender the VA without having a reasonable basis to believe that the transaction was suitable for her. The recommendation was unsuitable in view of the customer paying sales charge of $30, a Guaranteed Minimum Income Benefit (GMIB) rider charge of $479, a withdrawal charge of $3,440, as well as the loss of the $6296.91 monthly automatic withdrawal payments she had been receiving and the future income she would have received as a result fo purchasing the GMIB. When making the recommendation, Orlando failed to take into account the surrender and other charges, as well as the customer’s reliance on the VA for income. The complaint further alleges that contrary to the firm’s policies, Orlando maintained two pre-signed forms that were, except for a date and/or contract number, blank and incomplete. Orlando maintained a VA withdrawal and a request for electronic transfer of funds forms that he had the customer signed, in the customer’s file in his office.”
For a copy of the FINRA Complaint, click https://www.finra.org/sites/default/files/fda_documents/2014043863001%20Peter%20Orlando%20CRD%201142715%20NAC%20va.pdf
Pursuant to a hearing panel decision rendered January 29, 2019, Peter Orlando was barred from associating with any FINRA member in any capacity, ordered to pay $4,000 plus interest in restitution to the customer and ordered to pay hearing costs. The sanctions are “based on findings that Orlando engaged in unethical conduct by betraying the trtust of an elderly customer and assuming control over her findings.”
For a copy of Peter Orlando’s CRD, click https://brokercheck.finra.org/individual/summary/1142715#disclosuresSection
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.
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