Daniel R. Castoriano of New Orleans, Louisiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been fined and suspended for allegedly engaging in unauthorized trading in violation of NASD Rule 2510(b) and FINRA Rule 2010.
From December 2003 until June 2019, Daniel R. Castoriano was registered with Century Securities Associates, Inc. (Century) until they filed a Form U5 reporting that Mr. Castoriano was permitted to resign in connection with exercising discretion in a customers account. According to the findings, FINRA began investigating Mr. Castoriano after the Form U5 was filed alleging that he used discretion to execute six trades pursuant to an investment strategy without written authorization from the customer or permission from the firm. The FINRA findings stated that Century payed the customer $1,844 to settle a complaint about the trades and associated losses in the account.
NASD Conduct Rule 2510(b),’ prohibit registered representatives from exercising discretion in a customer’s account unless the customer provided prior written authorization to the representative, and the representative’s firm provided written acceptance of the account as discretionary prior to the transaction. A violation of NASD Conduct Rule 2510(b) is also a violation of FINRA Rule 2010, which requires associated persons to observe “high standards of commercial honor and just and equitable principles of trade.”
Without admitting or denying FINRA’s findings, Daniel R. Castoriano was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for 20 business days. The suspension was in effect from February 3, 2020, through March 2, 2020.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unauthorized trading, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Century, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Century account due to unauthorized trading by your broker? Was Daniel R. Castoriano your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Century stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.