gavel on money

Mark Larry Delgadillo of Santa Barbara California a stockbroker formerly registered with DA Davidson Co. has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Delgadillo effected unauthorized trades in a customer’s account. Letter of Acceptance Waiver and Consent No. 2020065936301 (Mar. 23, 2021).

According to the AWC, during the period that Delgadillo was associated with DA Davidson, he was disallowed from effecting trades in customer accounts by using discretion unless an exception applied. Between August 1, 2019 and October 31, 2019, Delgadillo made discretionary trades in 16 customers’ accounts.

FINRA stated that there were at least 100 occasions in which Delgadillo executed discretionary trades without holding an exception to the securities broker dealer’s directives. There was no point in which Delgadillo procured written permission from customers to exercise discretion. Delgadillo never got permission from DA Davidson to make discretionary trades either. The stockbroker violated FINRA Rules 2010 and 3260(b) for this reason.

Delgadillo has been referenced in two customer initiated investment related disputes concerning accusations of his improper activities. FINRA Public Disclosure confirms that a customer initiated investment related complaint regarding Delgadillo’s activities was settled to resolve allegations of unsuitable municipal debt transactions during the time that Delgadillo was associated with Morgan Stanley DW Inc. According to the complaint, the customer sustained damages on municipal debt holdings.

Another customer initiated investment related FINRA securities arbitration claim regarding Delgadillo’s activities was settled for $150,000.00 in damages based upon accusations that when the Citigroup Global Markets Inc. customer’s variable annuity was surrendered, there were omissions by the stockbroker with respect to the tax penalties and the loss of their minimum death benefit rider.

On April 20, 2020, Delgadillo was terminated by DA Davidson founded on allegations that he failed to get authorization from customers prior to effecting trades in their accounts.