Michael DeMaria, a Stockbroker with Northwestern Mutual, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member in all capacities for twenty months and fined $15,000 after consenting to findings that he caused a transfer of a firm client’s funds without her knowledge or consent, in violation of FINRA Rule 2010. Letter of Acceptance, Waiver, and Consent, No. 2013039601702 (June 5, 2015).
According to the AWC, in September 2013, DeMaria proposed that he and a client, BR, discuss a financial plan. The AWC noted that BR was instructed to open an account with Northwestern Mutual in order for a financial plan to be discussed. Customer BR, according to FINRA, did not wish for any transfer of funds to take place into the Northwestern Mutual account. After being told by DeMaria that there would not be any requirement that BR deposit funds into the account, BR decided to open the account.
The AWC stated that DeMaria, in September 2013, and without BR’s knowledge or consent, caused a transfer of roughly $38,000 to take place from BR’s mutual fund account with Charles Schwab into a new account that was established in BR’s name at Northwestern Mutual. FINRA found this conduct to be in violation of FINRA Rule 2010, a rule which requires that individuals adhere to high standards of commercial honor and just and equitable principles of trade.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
