Brian Gregory DiJulio of Bellevue Washington a stockbroker formerly registered with NBC Securities Inc. has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that (1) DiJulio executed unauthorized trades in customer accounts while employed by NBC Securities Inc. and (2) DiJulio mismarked trading tickets to make it appear as though trades were neither solicited nor executed on a discretionary basis. Letter of Acceptance Waiver and Consent No. 2018057561201 (July 23, 2019).
According to the AWC, during a FINRA examination into NBC’s trading practices, the regulator discovered that DiJulio effected suspicious trades in twenty-six customers’ accounts. Evidently, the trades concerned the same securities; had been executed on the same day as each other; and were effected on a short-term basis in customers’ accounts. Indeed, a total of sixty-five seemingly identical transactions had been executed by DiJulio in twenty-six customers’ accounts.
Apparently, none of the sixty-five transactions effected by DiJulio were properly authorized by customers. Particularly, FINRA discovered that there was no written authorization provided by customers to warrant DiJulio’s trading in their accounts. Moreover, the customers’ accounts had not been approved by NBC Securities Inc. for purposes of DiJulio’s exercise of discretion. Consequently, FINRA found that DiJulio’s conduct was violative of FINRA Rule 2010 and NASD Rule 2510.
The AWC additionally stated that DiJulio mismarked customers’ order tickets. Apparently, DiJulio was supposed to have marked the customers’ trades as having been executed with his discretion if that was the case; however, DiJulio claimed that the trades were neither solicited nor effected with his discretion. This reportedly led the firm to maintain false order tickets in violation of Securities Exchange Act Section 17(a). Consequently, FINRA found DiJulio’s conduct violative of FINRA Rules 2010 and 4511.
FINRA Public Disclosure reveals that DiJulio is referenced in eight customer initiated investment related disputes containing allegations of his violative conduct while employed with First Montauk Securities Corp, CIBC Oppenheimer Corp. and Smith Barney. For example, DiJulio was subject of a customer initiated investment related arbitration claim in which customers were collectively awarded $145,962.00 in damages based upon findings of DiJulio’s negligence, unsuitable trading, breach of fiduciary duty, misrepresentation, excessive trading, and fraudulent activities relating to the over-concentration of the customer’s assets in speculative equities, conflicting with the customer’s conservative objectives and tolerance for risk.
Later, a customer initiated investment related arbitration claim concerning DiJulio’s activities was resolved for $115,000.00 in damages supported by accusations that false statements and omissions had been made to the customer concerning the terms and conditions of investments held in the customer’s account; and a fiduciary duty owed to the customer was violated. Moreover, a customer initiated investment related civil action involving DiJulio’s conduct was settled for $105,000.00 in damages founded on allegations that trades were placed in the customer’s account on an unsuitable, excessive and unauthorized basis.
DiJulio was terminated from NBC Securities Inc. on November 1, 2018 based upon accusations of his unauthorized trading as referenced in FINRA’s disciplinary action against him.
