Aldo N. Marchena, of Boca Raton, Florida, a stockbroker formerly registered with Northeast Securities, Inc., has been subject to a customer initiated investment related arbitration claim on July 27, 2016, in which the customer requested $75,000.00 in damages based upon allegations that Marchena breached his fiduciary duties to the customer by making unsuitable recommendations of speculative investments.
FINRA Public Disclosure also reveals that on November 17, 2008, a customer filed an investment related arbitration claim involving Marchena’s conduct, in which the customer requested $10,388.47 in damages based upon allegations that Marchena sold mutual funds that were not suitable for the customer.
Additionally, on November 30, 2015, a customer filed an investment related arbitration action involving Marchena’s conduct, in which the customer requested $65,250.00 in damages based upon allegations that Marchena effected unsuitable and unauthorized trades in the customer’s account.
Subsequently, on March 24, 2016, Marchena was fined $5,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he was involved in an undisclosed and unauthorized outside business activity while associated with Northeast Securities. Letter of Acceptance, Waiver and Consent, No. 2014040769401 (Mar. 24, 2016).
According to the AWC, in January of 2011, at a time when Marchena was associated with Northeast Securities, Marchena founded an entity, ABC, which was designed to provide business based consultative services to customers. Marchena was reportedly held out to customers as the firm’s agent, analyst, legal representative, partner, and director.
Apparently, Marchena was denied permission by Northeast to refer customers of Northeast to ABC. The AWC stated that Marchena continued to be involved with ABC, unbeknownst to his firm. Further, Marchena apparently corresponded with multiple ABC customers between January of 2011 and December of 2013, even though such activities had not been approved of by his firm. As such, FINRA found that Marchena had violated FINRA Rule 2010 and 3270. Marchena was also cited for violating FINRA Rule 2010 because of providing false statements to his firm within his 2012 and 2013 compliance questionnaires regarding outside business activities.
Guiliano Law Group
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