Stephen Giannantonio, of New York, New York, a stockbroker with Aegis Capital Corp., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver and Consent, No. 2015047037401 (Oct. 4, 2016).
According to the AWC, from October of 2014 through March of 2015, Giannantonio effected fourteen transactions in a customer’s account, despite not having the customer’s requisite authorization prior to engaging in such. Apparently, the customer and Giannantonio communicated regarding investment strategies, but the customer had never authorized Giannantonio to engage in such trades on the days in which Giannantonio effected them. The AWC further stated that Aegis Capital Corp. never approved the affected customer’s account for trading in a discretionary manner. FINRA found that Giannantonio’s conduct was therefore violative of FINRA Rule 2010 as well as NASD Rule 2510(b).
FINRA Public Disclosure reveals that Giannantonio was previously named in six customer initiated investment related arbitration claims. On March 29, 2001, a customer was awarded $6,500.00 in damages in a customer initiated investment related arbitration claim based upon allegations against Giannantonio of committing sales practice violations, breach of fiduciary duty, churning of the customer’s account, conversion of customer funds, and fraud.
On October 9, 2001, Giannantonio was named in a customer initiated investment related arbitration claim in which the customer sought $35,000.00 in damages based upon allegations that Giannantonio traded in the customer’s account without authorization. On February 18, 2009, Giannantonio was named in a customer initiated investment related arbitration claim based on allegations that Giannantonio effected unsuitable investment transactions in the customer’s account.
On December 9, 2011, Giannantonio settled a customer initiated investment related arbitration claim for $225,000.00 in damages based upon allegations that Giannantonio effected unsuitable investment transactions, effected unauthorized and excessive trades in the customer’s account, committed forgery and made misrepresentations concerning investments. Giannantonio was terminated by his former employer, Laidlaw & Company Ltd., on January 5, 2012, based upon allegations from the aforementioned customer arbitration from December 9, 2011.
Since 1994, Giannantonio has been associated with twelve different broker dealers, six of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
Guiliano Law Group
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