Antonio Costanzo of Chesapeake Virginia a stockbroker formerly employed by Titus Rockefeller LLC (also known as TR Capital Group LLC) has been fined $10,000.00 and barred by Florida Office of Financial Regulation according to an Order founded on accusations that (1) Costanzo engaged in fraudulent investment transactions (2) Costanzo executed trades on margin without having authorization (3) Costanzo churned accounts of customers and (4) Costanzo placed customers in investments which were not suitable for them. Case No. 71606-S (Apr. 9, 2018).
This is not the first time that Costanzo has been sanctioned by a securities regulator for misconduct. Particularly, Costanzo has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Costanzo failed to respond to a request made by FINRA personnel for Costanzo’s information. Apparently, Costanzo had been issued a Notice of Suspension on May 28, 2015 and a Suspension from Association letter from FINRA on June 22, 2015. Apparently, Costanzo was provided three months from the Notice of Suspension to seek the termination of his suspension. However, Costanzo failed to respond to the regulator by the August 30, 2015 deadline. Therefore, FINRA automatically barred Costanzo by August 31, 2015.
Thereafter, in an unrelated matter, Costanzo was fined $150,000.00 and barred by FINRA according to a FINRA Office of Hearing Officers Default Decision containing findings that Costanzo, inter alia: churned the accounts of Newport Coast Securities customers; advised customers to effect transactions which were both qualitatively and quantitatively unsuitable for the customers; and tried to condition compensating customers on their refusal to help FINRA in its investigation into Costanzo. Department of Enforcement v. Antonio Costanzo et al. Disciplinary Proceeding No. 2012030564701 (Oct. 17, 2016).
According to FINRA’s Office of Hearing Officers, Costanzo effected excessive trades in customers’ accounts, and placed customers in investments which were in no way consistent with the customers’ objectives for investing and financial needs. Supposedly, fees or other benefits provided to Costanzo through his trading eroded customers’ investment returns. FINRA determined that Costanzo recklessly disregarded the interests of his customers, churning their accounts in a manner which ran afoul of FINRA Rules 2010; Securities Exchange Act of 1934 Section 10(b) and Securities Exchange Commission (SEC) Rule 10b-5. Additionally, FINRA Office of Hearing Officers found that Costanzo inappropriately advised customers in regard to their alternative investments including inverse or leveraged exchange traded products.
FINRA Public Disclosure reveals that Costanzo has been identified in eight customer initiated investment related disputes containing accusations of his violative conduct while employed with securities broker dealers including Walsh Manning and Brookstreet Securities Corporation. For example, Costanzo was subject of a customer initiated investment related arbitration claim in which the customer had been awarded $30,610.33 based upon Costanzo being found liable for making bad stock recommendations to a customer of Brookstreet Securities Corporation.
Then, a customer initiated investment related complaint involving Costanzo’s activities was settled for $67,500.00 in damages supported by allegations that unauthorized trades were executed in the customer’s account; false or misleading statements had been made concerning investments; and stock trades effected in the customer’s account failed to be suitable for the customer. Moreover, a customer initiated investment related arbitration claim involving Costanzo’s conduct had been resolved for $14,900.00 in damages founded on accusations including breach of contract, breach of fiduciary duty, omissions, misrepresentation, unauthorized trading, unsuitability, churning and fraud.
