Albert Lewis DeGaetano, of Independence, Ohio, a stockbroker formerly registered with Edward Jones, has been fined $7,500.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded upon findings that DeGaetano made unauthorized trades in customer accounts when he was registered with Edward Jones. Letter of Acceptance, Waiver, and Consent No. 2019061737101 (November 17, 2021).
According to the AWC, between December of 2017 and November of 2018, the written supervisory procedures used by Edward Jones called for stockbrokers to get customers’ authorizations at the time of making trades. Discretionary trading was prohibited at Edward Jones, and so was using time and price discretion.
The AWC states that 470 securities transactions in a fundraising organization customer’s account were made by DeGaetano without authorization or consent. DeGaetano executed 353 more transactions by speaking with someone who was not authorized by the fundraising organization. The principal value of DeGaetano’s 823 securities transactions was $7,200,000.00. This resulted in $113,000.00 in trading costs.
The AWC also states that in September of 2018, six securities transactions with a principal value of $30,721.00 were effected by DeGaetano in accounts of other firm customers. The transactions lacked customers’ authorizations or consents. FINRA found that DeGaetano violated FINRA Rule 2010 for unauthorized trading.
FINRA Public Disclosure shows that on April 30, 2019, a customer initiated investment related written complaint involving DeGaetano’s activities was resolved for $120,000.00 in damages based upon allegations that unauthorized trades were made by DeGaetano while he was employed by Edward Jones. The complaint alleges that commissions were generated because of these transactions, and the customer’s assets were not timely sold.
DeGaetano was registered with Edward Jones between September 28, 2015, and February 22, 2019. He was discharged supported by accusations of unauthorized trading in a customer’s account. The securities broker dealer indicates that DeGaetano engaged in activities that were inconsistent with the account’s purpose.
DeGaetano was registered with Cabot Lodge Securities LLC between September 23, 2019, and November 27, 2019. He was discharged founded upon accusations that he violated firm policy on private securities transactions and communications with the public.
