Joseph Todaro (CRD#: 5708585) is a registered Broker at SW Financial in Melville, NY.
He entered the securities industry in 2012 and previously worked for Worden Capital Management LLC; Spartan Capital Securities, LLC; Laidlaw & Company (UK) LTD; Craig Scott Capital, LLC; Rockwell Global Capital, LLC; and EKN Financial Services, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2021, a customer dispute was filed against Joseph Todaro, requesting damages of $206,000. The allegation states, “As per RR -The customer authorized and directed all trades executed in his account – each of which was consistent with the clients specified risk tolerance, financial condition, investment experience, extensive investment knowledge as well as the clients investment objectives. Any wrongdoing, if any, was at the fault of a previous broker managing his account who he cannot pursue legally. Furthermore, at no time did the client complain about the activity in his account or the performance and I am currently pursuing the complete dismissal and removal of these accusations.” The customer dispute remains pending.
In addition, Joseph Todaro has been the subject of three customer complaints, including the following:
● May 2018–”Client alleges churning, unauthorized and unsuitable trading from 2015-2017.” The customer dispute was settled for $14,000.
● November 2017–”Churning, breach of fiduciary duty, and excessive commissions were alleged against respondents, all of whom denied all allegations in their entirety.” The customer dispute was settled for $60,000.
● September 2017–”Churning; excessive commissions.” The customer dispute was settled for $14,800.
For a copy of Joseph Todaro’s FINRA BrokerCheck, click here.
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.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
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.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s agee, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
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