Gary Steven Costello II, of Palm Beach, Florida, a stockbroker previously registered with Truist Investment Services Inc., has been permanently barred by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity because Costello refused to appear for testimony requested by FINRA in connection with its investigation into allegations that Costello engaged in unauthorized trading, resulting in customer losses. Letter of Acceptance, Waiver, and Consent No. 2023079810101 (February 4, 2025).
According to the AWC, FINRA’s investigation originated from a Uniform Termination Notice for Securities Industry Registration (Form U5) filed by Truist on September 13, 2023. The securities broker dealer disclosed that Costello had been terminated following an internal investigation that found improper conduct in customer accounts in violation of Truist’s policies and ethics code.
On December 17, 2024, FINRA requested that Costello provide testimony regarding allegations that he had improperly canceled trades in his own account and reassigned them to customer accounts, resulting in financial losses for those customers. On January 21, 2025, during a phone call with FINRA, Costello acknowledged receiving the request but stated he would not appear for testimony at any time.
Under FINRA Rule 8210(a)(1), FINRA has the authority to require testimony from individuals under its jurisdiction as part of its investigations. A stockbroker’s failure to comply with this rule means a violation of both FINRA Rule 8210 and Rule 2010. By refusing to testify as required under FINRA Rule 8210, Costello violated Rules 8210 and 2010. As a result, FINRA imposed a permanent bar effective February 4, 2025.
FINRA Public Disclosure shows that Costello was referenced in nine customer initiated investment related disputes concerning Costello’s conduct while associated with securities broker dealers. On January 31, 2024, a customer initiated investment related complaint involving Costello’s conduct was settled for $99,086.44 in damages based upon allegations that Costello engaged in unauthorized trading in stocks from December 2022 to August 2023 during the time that Costello was associated with Truist Investment Services Inc.
On March 8, 2024, a customer initiated investment related complaint involving Costello’s conduct was settled for $128,131.27 in damages based upon allegations that Costello engaged in unauthorized trading in stocks.
On December 23, 2024, a FINRA securities arbitration claim involving Costello’s conduct was settled for $105,000.00 in damages based upon allegations that Costello overconcentrated accounts, engaged in unauthorized trading, and made unsuitable recommendations in over-the-counter equities, exchange-traded funds, and stocks when Costello was associated with Oppenheimer Co. Inc. FINRA Arbitration No. 23-03584.
Costello was also referenced in a complaint that was settled on March 19, 2024, for $146,147.28 in damages based upon allegations that Costello engaged in unauthorized trading when Costello was associated with Truist Investment Services Inc.
On February 15, 2024, a complaint involving Costello’s conduct was settled for $808,930.69 in damages based upon allegations that Costello engaged in unauthorized trading. Costello was also referenced in a complaint that was settled on March 8, 2024, for $234,451.00 in damages based upon alleged unauthorized trading.
Costello was associated with Aegis Capital Corp. in New York, New York, from September 11, 2023, to March 18, 2024. Costello was associated with Truist Investment Services Inc. in Palm Beach, Florida, from November 16, 2022, to September 13, 2023. He was associated with Oppenheimer Co. Inc. in Boca Raton, Florida, from July 19, 2019, to November 18, 2022, and was associated with Morgan Stanley in Boca Raton, Florida, from August 3, 2016, to May 17, 2019.
