Todd Joseph Pilosi, of Fresno, California, a stockbroker formerly registered with LPL Financial LLC, has been fined and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in unauthorized transactions involving customer funds. Letter of Acceptance, Waiver and Consent, No. 2016051455601 (Apr. 5, 2017).
According to the AWC, from 2009 to March of 2012, during which time Pilosi had been associated with previous firm, RBC Capital, a customer lent him an estimated $150,000.00. Apparently, the agreement between the customer and Pilosi went undocumented, and Pilosi has not repaid the money. Pilosi was reportedly disallowed from borrowing funds from customers pursuant to the firm’s procedures and policies. Moreover, he evidently failed to provide the firm with information or otherwise gain authorization for the lending arrangement he made with the customer. The AWC stated that Pilosi furnished a compliance questionnaire to his firm in April of 2012, where he denied ever entering into a loan arrangement.
The AWC further revealed that during the time Pilosi was associated with LPL Financial, he became subject of a customer initiated investment related civil action involving his misconduct, wherein the customer sought to be repaid by Pilosi pursuant to a loan arrangement. Pilosi reportedly confirmed with his firm that the loan arrangement existed and was consummated when employed with RBC Capital. Consequently, FINRA found that Pilosi’s conduct was violative of FINRA Rules 2010 and 3240 as well as NASD Rule 2370.
FINRA Public Disclosure additionally confirms that Pilosi has been identified in two customer initiated investment related disputes containing allegations of his misconduct while employed with Salomon Smith Barney Inc. and RBC Capital Markets. Specifically, on November 6, 1996, a customer was awarded $48,750.00 in damages according to an investment related arbitration claim involving Pilosi’s misconduct, based upon allegations that he negligently handled the customer’s investment account, made misrepresentations to the customer, and did not execute upon the customer’s instructions.
Further, on April 12, 2017, a customer initiated investment related civil action involving Pilosi’s conduct was settled for $155,000.00 in damages based upon allegations that he converted the customer’s funds, breached his fiduciary and contractual obligations, defrauded the customer, and effected a loan arrangement away from his firm.
Pilosi was fired from LPL Financial on October 10, 2016, based upon the allegations that he became subject of FINRA’s disciplinary action against him.
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