JP Turner And Company LLC Named In Customer Securities Arbitration

Michael Laurence DiGaetano, of Lewiston, New York, a stockbroker formerly registered with J.P. Turner & Company, L.L.C., has been named in a customer initiated investment related arbitration claim in which the customer has requested $725,000.00 in damages based upon allegations that DiGaetano breached his fiduciary and contractual obligations to the customer, negligently handled the customer’s account, made misrepresentations regarding investments, effected unsuitable transactions, and defrauded the customer pertaining to a 1031 Exchange.
FINRA Public Disclosure reveals that DiGaetano has been named in two additional customer disputes concerning allegations of DiGaetano’s misconduct. Particularly, on September 13, 2011, a customer initiated investment related arbitration claim involving DiGaetano’s conduct was settled for $9,166.67 in damages based upon allegations that DiGaetano breached his fiduciary obligations to the customer, made misrepresentations, and effected unsuitable investments pertaining to real estate securities and oil and gas products.
On November 21, 2014, another customer initiated investment related arbitration action regarding DiGaetano’s activities was resolved for $235,000.00 in damages based upon allegations that DiGaetano breached his fiduciary and contractual obligations to the customer, violated Nebraska Securities Law, negligently handled the customer’s account, effected unsuitable investments, made misrepresentations and defrauded the customer regarding real estate securities and tenant in common investments.
DiGaetano was additionally fined and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to supervise a registered representative, SS, who committed unsuitable mutual fund switches in violation of Securities Exchange Act of 1934 Section 10(b), Rule 10b-5, FINRA Rules 2020 and 2010, as well as NASD Rules 2120, 2310, 3110, 2110, and IM-2310-2. Letter of Acceptance, Waiver and Consent, No. 2009019209202 (May 17, 2012).
According to the AWC, DiGaetano failed to address red flags pertaining to his subordinate registered representative’s conduct, including: switches of mutual funds; identification of mutual fund trades as unsolicited; and Class A mutual fund shares having been the only type recommended by SS. The AWC stated that DiGaetano failed to properly examine SS’s rationale concerning the mutual fund switches, and did not follow up with customers to ensure that customers were cognizant of costs associated with SS’s activities. FINRA found DiGaetano’s conduct to be violative of FINRA Rule 2010 and NASD Conduct Rules 2110 and 3010.
DiGaetano’s registration with J.P. Turner & Company, L.L.C. was terminated on December 4, 2015. From August 25, 2015 to October 17, 2016, DiGaetano was associated with Summit Brokerage Services, Inc. He has been registered with Independent Financial Group, LLC since October 12, 2016.