Luigi Edward Mancusi, of Lake Forrest, Illinois, a stockbroker formerly registered with Oppenheimer & Co. Inc., has been fined $10,000.00, suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity, and agreed to provide $2,966.97 in restitution to a customer by consenting to findings that Mancusi effected unauthorized transactions in the customer’s account. Letter of Acceptance, Waiver and Consent, No. 2015048159201 (Oct. 10, 2017).
According to the AWC, Mancusi was responsible for servicing an investment account owned by customer JB as well as two investment accounts owned by customer SW. The AWC stated that from December of 2012 to September of 2014, discretion was exercised by Mancusi to effect, over a twenty-six-day period, a total of forty-five trades in SW’s investment account; however, Mancusi lacked any written authorization to exercise discretion. Moreover, the AWC stated that no written approval was provided by his firm permitting his discretionary trading. The transactions were reportedly executed on days in which time and price discretion had not been provided to Mancusi.
The AWC additionally revealed that securities were sold in customer JB’s account by Mancusi on March 14, 2014, during which time JB was outside of the United States and in no position to approve of Mancusi’s trades. Mancusi evidently used the customer’s proceeds to purchase two securities in JB’s account, causing the customer to be charged commissions and fees and suffer from a $2,966.97 investment loss. FINRA concluded that Mancusi’s conduct was violative of FINRA Rule 2010 and NASD Rule 2510(b).
FINRA Public Disclosure reveals that Mancusi has been identified in four customer initiated investment related claims pertaining to accusations of Mancusi’s improper conduct during the time that Mancusi was employed by Oppenheimer & Co. Inc., Wayne Hummer Investments and Vision Investment Services, Inc. Specifically, on June 4, 2004, a customer initiated investment related complaint regarding Mancusi’s conduct was settled for $9,900.00 in damages founded on allegations of unauthorized transactions pertaining to variable annuities. Mancusi purportedly placed the customer’s assets into a variable annuity instead of a fixed annuity, and never delivered a copy of the policy to the customer, which prevented the customer from becoming apprised of the unauthorized transaction.
Thereafter, a customer initiated investment related arbitration claim involving Mancusi’s activities was resolved for $80,000.00 in damages supported by accusations of misrepresentation, suitability and unauthorized transactions relating to mutual fund and unit investment trust products effected in the customer’s account. FINRA Arbitration No. 09-05455 (Oct. 13, 2009). Apparently, Mancusi improperly represented the safety and liquidity of unit investment trusts; stated that the customer would earn nine percent annual returns on a guaranteed basis; omitted information about the risks of investing; and sold the customer investments that failed to conform with the customer’s objectives for investing, tolerance for risk, and investment goals.
Subsequently, a customer initiated investment related arbitration claim regarding Mancusi’s activities was settled for $50,000.00 in damages based on accusations of suitability, fraud, misrepresentation, negligence, breach of fiduciary duty, and violation of the Securities Act of the State of Illinois pertaining to closed end funds and equities transactions placed in the customer’s account. FINRA Arbitration No. 13-00886 (Feb. 2, 2015). The customer alleged that Mancusi’s investment recommendations were in no way consistent with the customer’s tolerance for risk, and that Wayne Hummer Investments failed to supervise Mancusi’s fraudulent activities.
Afterward, on October 27, 2015, a customer initiated investment related complaint was resolved for $60,000.00 in damages based on allegations that unauthorized unit investment trust and mutual fund trades were effected in the customer’s investment portfolio from November of 2012 to November of 2014.
Mancusi’s registration with Oppenheimer & Co. Inc. was terminated as of November 18, 2015. Since November 4, 2015, he has been registered with David A. Noyes & Company.
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