Michael Ciro Colletti of Glen Cove, New York, a stockbroker registered with The Investment Center Inc., is the subject of an enforcement action initiated by FINRA in which the regulator is seeking sanctions against Colletti based upon allegations that Colletti engaged in unauthorized and unsuitable trading. Department of Enforcement v. Colletti, Complaint No. 2019061942901 (February 15, 2023).
According to the Complaint, trades placed by Colletti without the customer’s consent had a combined principal value of approximately $157,231.00. FINRA alleges that the customer was not a sophisticated investor and typically held long-term positions in mutual funds and stocks of established entities. As a result of Colletti’s trading, the customer allegedly incurred realized losses amounting to $5,417.17. The regulator alleges that Colletti violated FINRA Rule 2010.
Additionally, the complaint alleges that Colletti engaged in unsuitable and excessive trading in the customer’s account. He frequently bought and sold different equity positions, resulting in high costs. Colletti exercised control over the account, generating $4,981.00 in commissions. The Complaint alleges that the excessive trading conducted by Colletti led to a turnover rate of 10.28, while the cost-to-equity ratio in the account stood at 72.14 percent. Therefore, FINRA alleges that Colletti violated FINRA Rules 2010 and 2111.
This is not the first time that Colletti has been the subject of a regulatory action concerning Colletti’s conduct in the securities industry. Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Colletti has been fined and suspended by FINRA because Colletti failed to supervise certain registered representatives. Decision and Order of Offer of Settlement No. 2014042520501 (January 29, 2018).
Colletti’s registration with The Investment Center Inc. was terminated on January 31, 2020, and his investment adviser representative registration with IC Advisory Services Inc. was terminated on January 31, 2020. Colletti has been registered with Sovereign Global Advisors LLC as a stockbroker since February 4, 2020, and as an investment adviser representative since March 3, 2020.
