Philip John Nalesnik of Pottsville Pennsylvania a stockbroker formerly registered with LPL Financial LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Nalesnik hindered a FINRA investigation into accusations of (1) Nalesnik engaging in outside business activities in violation of the policies of LPL Financial LLC and (2) Nalesnik neglecting to timely cooperate with inquiries that had been made by the securities broker dealer into Nalesnik’s activities. Letter of Acceptance Waiver and Consent No. 2018059313701 (May 17, 2019).
According to the AWC, Nalesnik was subject of a FINRA investigation following FINRA’s receipt of information concerning Nalesnik’s termination from LPL Financial LLC. Particularly, LPL Financial LLC reported to FINRA that Nalesnik was discharged by the firm on July 8, 2018 founded on allegations that Nalesnik failed to conform to the firm’s policies pertaining to outside business activities and stalled on his responses to inquiries made by the firm about his activities.
Apparently, on April 3, 2019, a request was made by FINRA under Rule 8210 for Nalesnik’s recorded testimony concerning his activities. On April 9, 2019, Nalesnik corresponded with FINRA, indicating that he would not be cooperating with the regulator’s request or otherwise participating in the investigation. Evidently, Nalesnik was warned by FINRA that his failure to cooperate would be grounds for FINRA to bar him from the securities industry. FINRA ultimately found Nalesnik’s refusal to cooperate as violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Nalesnik has been identified in five additional customer initiated investment related disputes containing accusations of Nalesnik’s misconduct during the time that he was associated with CCO Investment Services Corp. Particularly, on February 29, 2008, a customer filed an investment related complaint involving Nalesnik’s conduct in which the customer requested $29,777.81 in damages based upon allegations that the customer was not notified about the contingent deferred sales charges pertaining to the mutual funds that had been purchased in the customer’s account.
Then, on October 9, 2008, a customer filed an investment related complaint concerning Nalesnik’s activities where the customer sought $11,770.51 in damages supported by accusations that omissions had been made to the customer concerning the principal risk on the customer’s mutual fund holdings. Another customer filed an investment related complaint regarding Nalesnik’s conduct in which the customer requested $180,000.00 in damages founded on allegations that the customer’s instructions were not followed concerning the allocation of mutual funds for the customer’s investment account.
Moreover, a customer initiated investment related arbitration claim regarding Nalesnik’s activities was resolved for $65,000.00 in damages based upon accusations that the customer sustained unwarranted losses on a municipal funds held in the customer’s investment account. FINRA Arbitration No. 10-01809 (July 10, 2012). Thereafter, Nalesnik was subject of a customer initiated investment related arbitration claim where the customer was awarded $50,000.00 in damages based upon CCO Investment Services Corp being found liable on the customer’s claims that the firm defrauded the customer; failed to supervise Nalesnik’s activities in the customer’s account; violated the Pennsylvania Unfair Trade Practices and Consumer Protection Law; breached a fiduciary obligation to the customer; sold investments that were in no way suitable for the customer; and violated Securities Exchange Act of 1934 Sections 10(b) and 20(a). FINRA Arbitration No. 10-04699 (June 20, 2012).
