Michael Lawrence Oromaner, of Uniondale, New York, a stockbroker formerly registered with Brookville Capital Partners, has been fined $25,000.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he effected unauthorized trades in a customer’s investment account. Letter of Acceptance, Waiver and Consent, No. 2016052559401 (Nov. 29, 2017).
According to the AWC, from November 26, 2012 to May 31, 2013, during the period that Oromaner was employed with Brookville Capital Partners, he effected trades in customer FW’s investment account on forty-one occasions without proper authorization. Evidently, customer FW never provided authorization in writing for trades to be effected on the customer’s behalf. Moreover, the firm never considered the account as approved for Oromaner to exercise discretion in customer FW’s account. FINRA concluded that Oromaner’s conduct was violative of FINRA Rule 2010 and NASD Rule 2510(b).
Moreover, from February 24, 2014 to November 5, 2014, during the period that he was associated with Legend Securities, Inc., he placed sixty-seven trades in the account of customer GM even though customer GM neither authorized, knew or provided consent to the transactions. Customer GM was reportedly victim to trading that FINRA found to be quantitatively unsuitable: GM incurred a 145.56 percent cost-to-equity ratio and a 48.51 turnover rate. As a result of the unsuitable and excessive trades, GM incurred $32,550.00 in approximate investment losses while Oromaner was compensated in commissions totaling $28,129.00. FINRA found that Oromaner’s conduct in that regard was violative of FINRA Rules 2010 and 2111.
FINRA further concluded that trades were excessively placed in customer JM’s investment account from May 1, 2014 to January 27, 2017, during which time Oromaner was employed with multiple brokerage firms. Particularly, from May 1, 2014 to January 5, 2015, during the period that he was registered with Legend Securities, Inc., he trades excessively in a business account and two personal accounts owned by customer JM, which collectively caused customer JM to incur a 66.54 percent cost-to-equity ratio and 29.3 turnover rate. Then, from January 8, 2015 to March 12, 2016, during the time he was employed with Avenir Financial Group, he placed trades excessively in a business investment account owned by customer JM, which resulted in a 147.25 percent cost-to-equity ratio and 83.3 turnover rate.
The AWC stated that from March 15, 2016 to September 28, 2016, at which point he was employed by Salomon Whitney Financial, he executed transactions in the business account owned by customer JM, which resulted in customer JM incurring a 63.48 cost-to-equity ratio and 56 turnover rate. Furthermore, from October 10, 2016, to January 27, 2017, during the time that Oromaner was employed with Cova Capital, he effected excessive trades in customer JM’s business investment account, leading customer JM to incur a cost-to-equity ratio of 16.6 percent and 13.1 turnover rate.
FINRA determined that the excessive trading that Oromaner engaged in with respect to customer JM’s account caused customer JM to pay fees and commissions totaling $400,000.00 even though customer JM lost $27,608.00. FINRA concluded that Oromaner’s trading was violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure confirms that Oromaner is the subject of eleven more customer initiated investment related disputes pertaining to allegations of his wrongdoing during the time that he was employed with Legend Securities, Inc., National Securities Corporation, New Castle Financial Services, LLC, Josephthal & Co, Inc., EKN Financial, Harrison Securities, Brookville Capital Partners, LLC and Legend Securities, Inc.
In particular, on January 13, 2000, a customer initiated investment related written complaint involving Oromaner’s conduct was settled for $6,200.00 in damages based upon accusations that Oromaner effected stock trades without the customer’s consent. Then, on October 15, 1999, a customer initiated investment related written complaint relating to Oromaner’s activities was resolved for $6,396.00 in damages founded on allegations that stock trades were executed without the customer’s authorization.
On April 22, 2004, a customer initiated investment related arbitration claim involving Oromaner’s conduct was settled for $150,000.00 in damages supported by accusations that improper over-the-counter equities transactions were effected on margin. NASD Arbitration No. 01-06522 (Apr. 22, 2004). Thereafter, a customer was awarded $29,277.00 in damages according to an investment related arbitration claim involving Oromaner’s misconduct, based upon findings that Oromaner effected unauthorized over-the-counter equities trades.
Furthermore, Oromaner has been subject of a customer initiated investment related written complaint which settled on December 23, 2014, for $12,895.65 in damages based upon accusations that Oromaner effected over-the-counter equities transactions in the customer’s account which the customer did not authorize. Subsequently, a customer filed an investment related arbitration claim pertaining to Oromaner’s activities where the customer sought $750,000.00 in damages based upon allegations of excessive commissions, churning, suitability, and high-pressure sales tactics relating to stock and over-the-counter equities trades. FINRA Arbitration No. 16-00405 (Mar. 23, 2016).
Oromaner has most recently been associated with Cova Capital Partners, LLC through January 27, 2017. Since July 1, 1997, Oromaner has been associated with eighteen different broker dealers, fifteen of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct, including Brookville Capital Partners (expelled on June 8, 2015), Legend Securities, Inc. (expelled on April 17, 2017) and Avenir Financial Group (expelled on September 19, 2016). #cockroach
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