Joseph Michael Fedorko Jr, of Greenwich, Connecticut, a stockbroker formerly registered with Laidlaw Company (UK) Ltd., has been fined $7,500.00 and suspended for ten months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings of Fedorko’s excessive and unsuitable trading while he was employed by Laidlaw Company. Letter of Acceptance, Waiver, and Consent No. 2020066704601 (December 17, 2021).
According to the AWC, Fedorko began servicing the account of two customers in February of 2012. Between January 1, 2014, and December 31, 2019, Fedorko effectively controlled the customer’s account, as the customers depended on Fedorko and closely followed his investment advice.
The AWC states that throughout that time, 1,200 transactions were made in the customers’ account. Customers were required to pay $760,000.00 in markups and commissions and sustained $1,100,000.00 in losses. Twenty-five percent of the markups and commissions were paid to Fedorko between 2014 and 2015. Fifty percent of the commissions were paid to Fedorko between 2016 and 2019.
FINRA states that the customers’ account contained an annualized cost-to-equity ratio of 26.73 percent and an annualized turnover rate of 20.76. The regulator states that Fedorko’s trading was unsuitable and excessive for this reason. He violated FINRA Rules 2010 and 2111.
Fedorko has been identified in eighteen customer initiated investment related disputes containing accusations of his misconduct while employed by securities broker dealers, including Laidlaw Company and Oppenheimer Co. Inc. FINRA Public Disclosure shows that Fedorko is identified in a customer initiated investment related FINRA securities arbitration claim which was settled for $120,000.00 in damages founded on accusations of Fedorko’s breach of a contract and fiduciary duty to the customer relating to corporate debt trades at Laidlaw Company. The claim alleges that Fedorko’s negligence resulted in damages to the customer.
Fedorko is also the subject of a customer initiated investment related FINRA securities arbitration claim which was settled for $125,000.00 in damages supported by accusations of unauthorized and unsuitable trading by Fedorko between 2012 and 2017 while at Laidlaw Company. FINRA Arbitration No. 18-01736 (July 30, 2020). According to the claim, the customer’s account was churned, resulting in damages on over-the-counter equities and common and preferred stock.
On August 11, 2021, another customer initiated investment related FINRA securities arbitration claim concerning Fedorko’s conduct was resolved for $750,000.00 in damages founded on allegations of Fedorko making unauthorized trades and churning the customer’s account between 2012 and 2020 during the time that he was registered with Laidlaw Company. FINRA Arbitration No. 20-01570. The claim alleges that the customer was placed into unsuitable private placements and over-the-counter equities.
Fedorko was registered with Laidlaw Company between June 1, 2009, and December 23, 2021.