Michael Scott Desando of Red Bank, New Jersey, a stockbroker currently registered with Network 1 Financial Securities Inc., has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Desando made unsuitable and excessive transactions during the time that he was associated with Network 1 Financial Securities Inc. Letter of Acceptance, Waiver, and Consent No. 2021072685301 (August 22, 2022).
According to the AWC, between January 2017 and November 2018, while associated with Network 1 Financial Services, Desando unsuitably and excessively traded a customer’s account. Desando recommended that a customer with limited investment experience make 180 transactions. The customer’s account had an average equity of $30,700.00.
The transactions that Desando recommended had a total principal value of approximately $1,700,000.00. This resulted in an annualized turnover rate of 28, which caused the customer to incur $37,000.00 in trading costs and commissions. The transactions that were recommended by Desando resulted in an annualized cost-to-equity ratio of 69 percent. FINRA states that the customer’s account would have needed to grow by 69 percent to break even. Accordingly, Desando violated FINRA Rules 2010 and 2111.
FINRA Public Disclosure shows that Desando is referenced in two customer initiated investment related disputes concerning Desando’s conduct while associated with securities broker dealers. On August 16, 2010, a customer initiated investment related complaint involving Desando’s activities was settled for $160,000.00 in damages based upon accusations that Desando mismanaged the customer’s investments and made excessive and unsuitable transactions in connection with the recommendation and sale of stocks during the time that Desando was associated with VFinance Investments Inc.
Desando is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $10,000.00 in damages based upon allegations that Desando breached a fiduciary duty with regard to the recommendation and sale of stocks when Desando was associated with Network 1 Financial Securities Inc. FINRA Arbitration No. 19-00115 (February 4, 2020).
Remarkably, Desando has been associated with sixteen firms, fourteen of which have been expelled by FINRA or are otherwise defunct.
Desando has been registered with Network 1 Financial Securities Inc. since January 4, 2016.