According to FINRA, Troy Allen Orlando was suspended for 20 months and ordered to pay $58,082.50 in restitution for willfully violating Regulation Best Interest and FINRA suitability rules by recommending excessive trading in five customer accounts.

Orlando recommended high frequency trading in the customers' accounts and the customers relied on Orlando's advice and routinely followed his recommendations. As a result, Orlando exercised de facto control over the customers' accounts. Orlando's trading in the customers' accounts, some of whom were seniors, resulted in total trading costs of $231,798, including $164,897 in commissions, and caused $198,450 in realized losses.

The restitution imposed is equal to commissions paid by two customers. The other customers had previously obtained an arbitration award against Orlando's member firm related to his trading, so they were not included in the restitution order to avoid double recovery.

This case represents classic churning: a broker exercises control over customer accounts and recommends excessive trading that generates substantial commissions for the broker while causing significant losses for the customers. Orlando earned nearly $165,000 in commissions while his customers, including seniors, lost over $198,000 in realized losses and paid over $231,000 in total trading costs.

The fact that some customers pursued arbitration and obtained an award against the firm demonstrates that the trading caused real harm and that customers recognized they had been wronged. The lengthy 20-month suspension reflects the seriousness of the violations and the significant harm to multiple customers, including vulnerable seniors.

Excessive trading is one of the most common and damaging forms of broker misconduct. Investors should monitor their accounts for unusually high levels of trading activity and mounting commission costs. When commissions are high and account values are declining, it may indicate churning designed to benefit the broker at the customer's expense.