Neil Palazzo, of Syosset, New York, a stockbroker formerly registered with David Lerner and 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 consenting to findings that he effected transactions in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2015047981501 (Apr. 19, 2017).
According to the AWC, discretion had been exercised in a customer’s account by Palazzo in reference to mutual fund transactions. Apparently, the customer was not contacted by Palazzo on the day in which he effected the trades, and no authorization in writing was previously provided by the customer enabling Palazzo to exercise discretion in the customer’s account. Moreover, the customer’s account was not authorized by David Lerner and Associates, Inc. for trading to be effected on a discretionary basis. FINRA found that Palazzo’s conduct was violative of FINRA Rule 2010 and NASD Conduct Rule 2510(b).
This is not the first time that Palazzo has been sanctioned for this type of misconduct. Public Disclosure records reveal that on July 22, 2016, Palazzo consented to an $8,000.00 in administrative and civil fines imposed by the State of Alaska Department of Commerce, Community, and Economic Development Division of Banking and Securities pursuant to a Consent Order containing findings that Palazzo effected the unauthorized purchase and sale of securities in the customer’s account.
Particularly, the Order stated that on February 19, 2015, Palazzo sold the customer’s position in Spirit of America Income Fund and purchased Gabelli Utilities Fund, wherein Palazzo was paid over $1,000.00 for the trade. Since the customer never authorized the transactions, the Administrator of the Division of Banking and Securities found that Palazzo’s conduct was violative of AS 45.55.025(28). Additionally, on July 15, 2016, a customer initiated investment related written complaint involving Palazzo’s conduct was settled for $7,813.61 in damages based upon allegations that unauthorized mutual fund trades were effected by Palazzo in the customer’s account.
Since August 7, 2015, Palazzo has been registered with Ameriprise Financial Services, Inc.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
