Stephen J. Landa, of Easton, Connecticut, a stockbroker formerly registered with Invest Financial Corporation, 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 unsuitable transactions in a customer’s account. Letter of Acceptance, Waiver and Consent, No. 2016049485101 (May 17, 2017).
According to the AWC, from December of 2013 and June of 2015, Landa utilized an investment strategy with customers SJ and NJ – both of whom were retired individuals, at least sixty years of age, and who relied upon generating fixed income to cover living expenses. Particularly, Landa made recommendations for the customers to purchase and sell their mutual funds positions after short investment periods, despite the funds having been geared for longer term holding periods.
Apparently, SJ and NJ held their investments for merely six months when Landa made recommendations for them to turn over their positions. The AWC revealed that the customers reportedly incurred sales charges on the front-end in connection with purchasing class A shares. The customers reportedly sustained $18,156.53 in investment losses in connection with at least twelve circumstances where Landa made faulty recommendations. FINRA found that Landa lacked an adequate foundation to conclude that his recommendations were appropriate for customers considering that they intended to invest on a conservative basis. As a result, Landa’s conduct was found by FINRA to be violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure reveals that Landa has been identified in two customer initiated investment related disputes containing allegations of his misconduct while employed with Invest Financial Corporation and American Express Financial Advisors, Inc. and. Particularly, on June 30, 2004, a customer initiated investment related civil action involving Landa’s conduct was settled for $25,000.00 in damages based upon allegations that he solicited customers for an investment sold outside the auspices of American Express Financial Advisors, wherein the customer sustained $1,650,000.00 in losses.
Subsequently, on December 18, 2013, a customer initiated investment related arbitration claim regarding Landa’s activities was resolved for $200,000.00 in damages based upon allegations that he made misrepresentations to the customer concerning investments, breached his fiduciary duties owed to the customer, and committed fraud in reference to a tenancy-in-common exchange transaction.
Landa’s employment with Invest Financial Corporation was terminated on August 5, 2015, based upon the firm’s allegations that he wrongfully effected mutual funds transactions in the firm’s customer accounts.
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