Matthew Eric Platnico of New York, New York, a stockbroker registered with Allied Millennial Partners LLC, has been fined $10,000.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Platnico engaged in unsuitable and unauthorized trading in a customer’s account. Letter of Acceptance, Waiver, and Consent No. 2020067385401 (May 23, 2023).
According to the AWC, before September 2019, Platnico advised a risky options trading plan in a joint account owned by the customer and her deceased spouse. Platnico regularly discussed the strategy with the customer’s husband. However, after the husband’s death, Platnico and the customer had one telephone conversation, and Platnico continued implementing the trading plan in the account.
Prior to executing the options transactions, Platnico did not call the customer or get discretionary trading authorization. Additionally, although Platnico sometimes contacted the customer’s son to discuss the options trading strategy in the account, Platnico never received written authorization for the son to control the trading.
Furthermore, Platnico failed to conduct reasonable due diligence to ensure the suitability of the options strategy for the customer’s investment profile. FINRA noted that the strategy entailed significant risk of loss, the customer was retired, had little investment experience, and had only a moderate risk tolerance.
Between September of 2019 and March of 2020, Platnico placed over 100 unauthorized and unsuitable options trades in the customer’s account, resulting in losses between February and March of 2020.
Consequently, Platnico violated FINRA Rules 2010 and 2111.
FINRA Public Disclosure shows that Platnico is referenced in five customer initiated investment related disputes concerning Platnico’s conduct while associated with securities broker dealers. On February 5, 2019, a customer initiated investment related complaint involving Platnico’s conduct was settled for $95,690.00 in damages based upon allegations that Platnico engaged in unauthorized trading in options when Platnico was associated with Oppenheimer Co. Inc.
On September 13, 2021, a customer initiated investment related FINRA securities arbitration claim involving Platnico’s conduct was settled for $182,500.00 in damages based upon allegations that Platnico engaged in unsuitable and unauthorized trading in index options during the time that Platnico was associated with Allied Millennial Partners LLC. FINRA Arbitration No. 20-02208.
Platnico is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $50,000.00 in damages based upon allegations that Platnico made misrepresentations of material fact, engaged in unauthorized trading, made unsuitable recommendations, and engaged in excessive trading in options when Platnico was associated with Oppenheimer Co. Inc. FINRA Arbitration No. 19-02385 (February 23, 2022).
On March 6, 2023, a different customer initiated investment related FINRA securities arbitration claim involving Platnico’s conduct was settled for $30,000.00 in damages based upon allegations that Platnico made unsuitable recommendations in connection with the sale of index options during the time that Platnico was associated with Allied Millennial Partners LLC. FINRA Arbitration No. 21-00652.
Platnico is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $65,000.00 in damages based upon allegations that Platnico provided unsuitable advice regarding index options at Allied Millennial Partners LLC. FINRA Arbitration No. 22-02962 (March 6, 2023).
Platnico’s stockbroker registration with Allied Millennial Partners LLC was terminated on March 27, 2023.
