Matthew J. Giannone, of Melville, New York, a stockbroker formerly registered with Oppenheimer & Co. Inc., has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he entered into an unauthorized loan arrangement. Letter of Acceptance, Waiver and Consent, No. 2015048067801 (Dec. 28, 2016).
According to the AWC, in July of 2015, two married individuals provided Giannone with a $35,000.00 loan which had not been documented formally. Giannone evidently failed to apprise Oppenheimer of the borrowing arrangement and obtain approval to engage in it. The AWC stated that in August of 2015, after the customers had complained regarding the loan, Oppenheimer became apprised of its existence. FINRA found that Giannone’s actions in this regard was violative of FINRA Rule 2010 and 3240.
FINRA Public Disclosure reveals that Giannone has been named in twelve customer arbitrations. Particularly, on June 1, 2015, a customer initiated investment related arbitration claim involving Giannone’s conduct was settled for $10,000.00 in damages based upon allegations that Giannone effected the purchase of an equity in the customer’s account which had not been authorized by the customer.
On September 13, 2010, another customer initiated investment related arbitration action concerning Giannone’s conduct was resolved for $19,500.00 based upon allegations that Giannone failed to abide by the customer’s instructions, traded in the customer’s account without authorization, made material omissions and misrepresentations to the customer concerning investment information, and made investment recommendations to the customer which were not suitable.
Additionally, on February 10, 2016, a customer filed an investment related arbitration claim involving Giannone’s conduct, in which the customer requested $1,200,000.00 in damages based upon allegations that Giannone borrowed funds from the customer, and made unsuitable investment recommendations pertaining to the customer’s margin account.
On October 13, 2016, six customer initiated investment related arbitration claims concerning Giannone’s conduct were filed, in which customers have collectively requested $600,000.00 in damages based upon allegations against Giannone that include unauthorized trading, unauthorized use of margin, misrepresentation, churning, and unsuitability.
Subsequently, on November 2, 2016, another customer filed an investment related arbitration action regarding Giannone’s activities, in which the customer requested $20,636.00 in damages based upon allegations that Giannone effected unauthorized and unsuitable transactions in the customers’ accounts.
Giannone was fired from Oppenheimer & Co. Inc. on November 15, 2016, based upon allegations that Giannone notified the firm of the aforementioned disciplinary action imposed by FINRA for Giannone’s misconduct.
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