Daniel R. Castoriano of New Orleans Louisiana a stockbroker formerly registered with Century Securities Associates Inc. has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he effected unauthorized trades in a customer’s account. Letter of Acceptance Waiver and Consent No. 2019062882001 (Jan. 31, 2020).
According to the AWC, Castoriano became the subject of a FINRA investigation following his termination from Century Securities. The securities broker dealer contended that Castoriano effected trades in a customer’s account in contravention of its policies because of the stockbroker’s failure to secure written authorization before trading in the customer’s account. Castoriano was required not only under firm policy but also under FINRA Rules to refrain from making discretionary trades in the accounts of Century Securities customers unless he had been provided with written authorization from the customers and the securities broker dealer.
Between September 26, 2018 and May 22, 2019, discretion was used by Castoriano to effect trades as part of an investment strategy which had been accepted by the customer. The customer’s acquiescence to this investment strategy did not mean that the stockbroker could decide on his own when to make securities purchases or sales for the customer’s account. Castoriano was found by FINRA to have violated FINRA Rules 3260(b) and 2010 as well as National Association of Securities Dealers (NASD) Rule 2510(b).
FINRA Public Disclosure confirms that a customer filed an investment related complaint concerning Castoriano’s activities where the customer sought $86,000.00 in damages founded on accusations that while Castoriano was associated with Edward Jones, the customer’s instructions of liquidating certificates of deposit were disregarded which led the customer to incur undue tax consequences. Castoriano’s registration with Century Securities Associates was terminated on June 11, 2019. From June 5, 2019 to June 19, 2019, he was associated with LPL Financial LLC.
