Bad Brokers

According to FINRA, John Anthony Orlando was fined $2,500 and suspended for 10 business days for causing his firm to maintain inaccurate books and records by mischaracterizing solicited transactions as unsolicited. Orlando solicited a customer to participate in transactions but marked them as unsoli...

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According to FINRA, John Anthony Orlando was fined $2,500 and suspended for 10 business days for causing his firm to maintain inaccurate books and records by mischaracterizing solicited transactions as unsolicited. Orlando solicited a customer to participate in transactions but marked them as unsolicited. Accurate trade records are essential for regulatory oversight and supervision. Mischaracterizing solicited trades as unsolicited can help brokers evade suitability obligations and supervisory reviews. Investors should review trade confirmations to ensure accuracy.

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According to FINRA, Manish Saini was fined $7,500 and suspended for 60 days for participating in a $500,000 private securities transaction without firm approval. Saini requested approval to purchase preferred shares, but before receiving approval, he signed purchase documents without informing the f...

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According to FINRA, Manish Saini was fined $7,500 and suspended for 60 days for participating in a $500,000 private securities transaction without firm approval. Saini requested approval to purchase preferred shares, but before receiving approval, he signed purchase documents without informing the firm. When questioned, he withdrew his request and falsely claimed he had not funded the investment. Two days later, he wired the $500,000 without approval. During an investigation, Saini initially denied participating, then later admitted it. Private securities transactions away from firms must be disclosed and approved. This ensures proper supervision and prevents conflicts of interest.

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According to FINRA, Daniel William Stoakes Jr. was fined $5,000 and suspended for four months for forging customer signatures on account transfer forms. Stoakes electronically signed customer names without authorization on new account applications, transfer forms, certification of trust, and bank tr...

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According to FINRA, Daniel William Stoakes Jr. was fined $5,000 and suspended for four months for forging customer signatures on account transfer forms. Stoakes electronically signed customer names without authorization on new account applications, transfer forms, certification of trust, and bank transfer forms. One couple complained and the transfer was reversed. Stoakes also electronically signed other customers' names with their permission on transfer forms, though they did not complain. Forging signatures violates fundamental trust and can facilitate unauthorized transactions. Customers should immediately report any documents bearing signatures they did not provide.

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According to FINRA, Phil Donahue was fined $2,500 and suspended for 30 days for recommending that retired customers invest 90% of their account in a single energy-sector mutual fund. The non-diversified fund invested substantially in energy companies, subjecting the customers to substantial risk. Fo...

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According to FINRA, Phil Donahue was fined $2,500 and suspended for 30 days for recommending that retired customers invest 90% of their account in a single energy-sector mutual fund. The non-diversified fund invested substantially in energy companies, subjecting the customers to substantial risk. Four years later, the fund decreased by over 50%. After transferring to another broker-dealer, customers sold and realized a substantial loss. The recommendation was unsuitable for retired customers in their sixties. Concentrated sector positions create excessive risk. Investors should maintain diversification across sectors and asset classes.

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According to FINRA, Zachary Hansen was fined $7,500 and suspended for 45 days for communicating with customers about securities business through unapproved text messages. Hansen's texts included securities recommendations, account performance, transactions, and market events using his personal cell ...

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According to FINRA, Zachary Hansen was fined $7,500 and suspended for 45 days for communicating with customers about securities business through unapproved text messages. Hansen's texts included securities recommendations, account performance, transactions, and market events using his personal cell phone without authorization. The firm did not retain these messages. Off-channel communications prevent firms from supervising representatives and maintaining required records, creating risks of misconduct going undetected. Investors should insist communications occur through firm-approved channels.

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According to FINRA, Daniel T. Minich was fined $5,000 and suspended for four months for participating in private securities transactions totaling $200,000 without providing prior written notice to his firm. Minich purchased $50,000 in limited partnership interests in a hedge fund purporting to inves...

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According to FINRA, Daniel T. Minich was fined $5,000 and suspended for four months for participating in private securities transactions totaling $200,000 without providing prior written notice to his firm. Minich purchased $50,000 in limited partnership interests in a hedge fund purporting to invest in cryptocurrency. He also facilitated two customers' purchases of $50,000 and $100,000 in the same fund. Minich falsely attested he had not engaged in private securities transactions other than those pre-cleared. Private transactions away from firms must be disclosed to ensure supervision and prevent conflicts. Cryptocurrency investments carry substantial risks and may be unsuitable for many investors.

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According to FINRA, Mark David Martino was fined $10,000, suspended for 40 business days, and ordered to pay $61,248 in disgorgement for failing to conduct reasonable ongoing due diligence of a private placement. Martino learned the FTC sued the company founder for fraud and froze assets. After sell...

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According to FINRA, Mark David Martino was fined $10,000, suspended for 40 business days, and ordered to pay $61,248 in disgorgement for failing to conduct reasonable ongoing due diligence of a private placement. Martino learned the FTC sued the company founder for fraud and froze assets. After selling began, the FTC sought to freeze all company assets and hold the CEO in contempt for funneling assets to the founder. Martino was unaware because he relied on the issuer for updates. The court held the CEO in contempt and ordered transfer of $1.205 million to a receiver. The company failed to repay investors. Martino received $61,248 in placement fees. As CEO and due diligence supervisor, Martino failed to implement reasonable ongoing due diligence procedures.

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According to FINRA, Yan Binder was fined $10,000 and suspended for 30 days for using unapproved channels to exchange text messages with a customer about securities-related business. The firm did not preserve those communications. Using unapproved communication channels prevents proper supervision an...

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According to FINRA, Yan Binder was fined $10,000 and suspended for 30 days for using unapproved channels to exchange text messages with a customer about securities-related business. The firm did not preserve those communications. Using unapproved communication channels prevents proper supervision and record retention, which are essential for investor protection and regulatory oversight.

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According to FINRA, Bryon Edwin Martinsen was fined $10,000 and suspended for 15 months for participating in $1.1 million in private securities transactions without notice and for sharing in customer losses totaling $400,000. Martinsen facilitated sales of illiquid alternative investments between cu...

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According to FINRA, Bryon Edwin Martinsen was fined $10,000 and suspended for 15 months for participating in $1.1 million in private securities transactions without notice and for sharing in customer losses totaling $400,000. Martinsen facilitated sales of illiquid alternative investments between customers by introducing buyers and sellers, recommending prices, and assisting with documents. He falsely denied participation in annual questionnaires. Martinsen also made $400,000 in payments to compensate customers for investment losses without firm authorization. He falsely denied making such payments in compliance questionnaires. Sharing in losses and participating in undisclosed transactions creates conflicts and prevents supervision.

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According to FINRA, Efthimios George Petrou was fined $5,000, suspended for six months, and ordered to pay $96,306.65 in restitution for excessively and unsuitably trading in a retired customer's account. Petrou recommended margin trades that caused the customer to pay $88,348.13 in commissions and ...

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According to FINRA, Efthimios George Petrou was fined $5,000, suspended for six months, and ordered to pay $96,306.65 in restitution for excessively and unsuitably trading in a retired customer's account. Petrou recommended margin trades that caused the customer to pay $88,348.13 in commissions and $7,958.52 in margin interest, totaling $96,306.65. This resulted in a cost-to-equity ratio of over 86%, meaning investments had to grow by 86% just to break even. The customer realized a loss of approximately $17,000. Excessive trading on margin magnifies both gains and losses while generating substantial fees that make profitability virtually impossible.

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