Robert James D’Andria of Manasquan, New Jersey submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for unsuitable recommendations in violation of FINRA Rule 2111 and 2010.
In July 2010, Robert James D’Andria joined International Assets Advisory (“IAA”) as a General Securities Representative. According to the FINRA findings, Mr. D’Andria recommended 21 non-traditional exchange traded products (NT-ETPs) to five IAA customers without having a sufficient understanding of the risks and features associated with these products. The FINRA findings stated that the average holding period was 327 days and the customers held them for periods ranging from 30 to 758 days. Due to the extended holding periods, the customers incurred approximately $93,000 in losses. In addition to the findings, IAA agreed to supervision charges and agreed to a fine and order of restitution to be paid to the affected customers in relation to the unsuitable recommendations.
Under FINRA Rule 2111, to make a suitable recommendation, representatives must first have an understanding of the potential risks and rewards inherent in that recommendation. Thus, a representative may violate the suitability rule if he or she has no reasonable basis to make the recommendation to any customer, regardless of the investor’s wealth, willingness to bear risk, age, or other individual characteristics. A violation of FINRA Rule 2111 also constitutes a violation of FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Robert James D’Andria was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for two months. The suspension was in effect from February 3, 2020, through April 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 unsuitable recommendations, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like IAA, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your IAA account due to unsuitable recommendations by your broker? Was Robert James D’Andria 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 IAA 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.