Bernardo Misseri of Staten Island New York a stockbroker formerly registered with Legend Securities Inc. has been ordered by a Financial Industry Regulatory Authority (FINRA) Arbitration Panel to pay a customer $110,622.95 in compensatory damages and $629,241.78 in punitive damages based upon the Panel finding that (1) Misseri negligently transacted in the customer’s account (2) Misseri violated blue sky laws (3) Misseri effected unauthorized and excessive trades in the customer’s account (4) Misseri omitted information and misrepresented information concerning the customer’s investments (5) Misseri violated his fiduciary duties to the customer (6) Misseri churned the customer’s account and (7) Misseri defrauded the customer. FINRA Arbitration No. 15-00802 (June 25, 2019).
According to the Arbitration Panel, the investments which produced losses for the customer had been solicited by Misseri. He reportedly advised the Florida customer to purchase securities despite Misseri not being registered in the State of Florida. Misseri also reportedly failed to abide by the customer’s instructions relating to the liquidation of the customer’s holdings. Further, the Panel found that Misseri mismarked the customer’s orders as unsolicited to make it appear as though Misseri did not solicit the investments from the customer. Finally, Misseri evidently fraudulently misrepresented or omitted the commissions and mark-ups charged to the customer.
FINRA Public Disclosure reveals that Misseri is referenced in seven more customer initiated investment related disputes which pertain to allegations of his misconduct during the time that he was associated with J.P. Turner Company L.L.C. and Legend Securities Inc. Particularly, a customer filed an investment related complaint regarding Misseri’s conduct where the customer sought $48,487.70 in damages supported by accusations that the customer’s account had been negligently managed resulting in the customer incurring losses on over the counter equities positions.
Then, a customer initiated investment related arbitration claim concerning Misseri’s conduct was settled for $45,000.00 in damages founded on allegations that over the counter equities had been placed in the customer’s account by Misseri without the customer’s authorization. FINRA Arbitration No. 15-01904 (Apr. 15, 2016). Moreover, Misseri was subject of a customer initiated investment related arbitration claim in which the customer had been awarded $50,000.00 in damages according to Legend Securities Inc. being found liable on the customer’s claims of the violations of New York Stock Exchange (NYSE) Rules 401 and 405 in addition to FINRA Rules 2150 and 2010 and Iowa Uniform Securities Act; breach of contractual and fiduciary duties; negligence; over-concentration of assets in speculative stocks and over the counter equities; and bad investment advice concerning the securities held in the customer’s account. FINRA Arbitration No. 16-00506 (Aug. 12, 2016).
Misseri has been thrice sanctioned by a securities regulator for misconduct. For example, Misseri was fined $15,000.00 and suspended for two years from associating with any National Association of Securities Dealers (NASD) member in any capacity according to a Decision and Order of Offer of Settlement founded on accusations that Misseri engaged in private securities transactions without permission from his securities broker dealer, McGinn Smith Co. Inc., where he solicited customers’ limited partnership interest purchases outside the firm’s auspices in violation of NASD Conduct Rules 2110 and 3040.
Misseri’s employment with Legend Securities Inc. was terminated on December 2, 2016. All seven broker dealers with whom Misseri was associated have been expelled by securities regulators for violation of federal securities laws or who are otherwise defunct. #cockroach
