Frank J. Bodi, a stockbroker formerly associated with Landolt Securities Inc. in Solon, Ohio, has been fined $7,500 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because he engaged in unauthorized trading. Letter of Acceptance, Waiver, and Consent No. 2023079079001 (January 30, 2025).
According to the AWC, between September 2022 and June 2023, Bodi executed 61 unauthorized discretionary transactions in three customer accounts at Landolt Securities. Although he had discussed trade strategies with these customers, he failed to obtain authorization for each specific trade at the time of execution. Furthermore, the customers had not provided written authorization allowing discretionary trading in their accounts, nor had Landolt Securities designated these accounts as discretionary.
Under FINRA Rule 3260(b), a stockbroker must have prior written authorization from a customer and firm approval before exercising discretionary power in a brokerage account. By failing to comply with this requirement, Bodi also violated FINRA Rule 2010. FINRA’s investigation originated from a routine 2023 exam of Landolt Securities, during which the unauthorized trading activity was uncovered by the regulator.
From March 2017 to February 2024, Bodi was associated with Landolt Securities Inc.
