Stephen J. Landa, of Easton, Connecticut, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $5,000 and suspended for two months for recommending and engaging in a short-term mutual fund trading strategy in the accounts of retirees on a fixed income and conservative investment goals.
FINRA found that while employed with INVEST Financial Corporation, Stephen Landa engaged in an unsuitable short-term mutual fund trading strategy in two customers’ accounts. The customers were 60 years old at the time, retired, and living on a fixed income. Further, the customers had conservative investment objectives and moderate risk tolerances. Notwithstanding their conservative investment profiles, FINRA found that Mr. Landa recommended they purchase mutual fund shares and shortly thereafter (on average, just six months), he recommended they sell the shares. Consequently, the customers suffered losses of $18,156.53. Continue Reading