Paul Anthony Steffany, of Westport, Connecticut, a stockbroker formerly registered with Raymond James & Associates, Inc., is the subject of an Order Issued by the Banking Commissioner of the State of Connecticut which permanently barred him from engaging in business as an investment advisor, broker-dealer, investment adviser agent, or broker-dealer agent. In the Matter of Paul Anthony Steffany, Consent Order No. CO-16-8275-S (May 13, 2016).
The Order referenced that Steffany has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he converted a customer’s funds and committed forgery. Letter of Acceptance, Waiver and Consent, No. 2014041650301 (Oct. 1, 2015). Evidently, $112,742.00 of an estate’s funds had been converted by Steffany between January of 2007 and April of 2014, during which point he was the trustee of a testamentary trust for a Raymond James customer’s estate.
Apparently, funds were transferred by Steffany from the Raymond James estate account to another banking institution, where he took withdrawals from that account to address his personal expenses. Additionally, between August of 2007 to April of 2014, Steffany purportedly forged a co-executor’s signature on twelve checks that were payable to the estate, and subsequently cashed those checks for his own personal gain. FINRA found Steffany’s conduct violative of FINRA Rules 2010, 2150(a), and NASD Rules 2110 and 2330(a).
The Order stated that Steffany’s activities were then investigated by the Commissioner of the State of Connecticut, through its Securities and Business Division of the Department of Banking, where Steffany was prompted by the Division to respond with any explanation of why his securities related business activities should not be restricted or why his broker-dealer agent registration should not be revoked. Steffany failed to respond to the Division. The Commissioner concluded that FINRA’s sanctioning of Steffany was a proper basis to bar Steffany according to Section 36b-15(a)(2)(F)(iii) of the Connecticut Uniform Securities Act.
Steffany has additionally been barred in all capacities by the Arizona Corporation Commission according to an Order of Revocation and Consent To Same. In the matter of Paul A. Steffany, Docket No. S-20960A-16-0111 (June 27, 2016). According to the Order, FINRA’s permanent bar of Steffany served the basis of Arizona Corporation Commission’s decision to revoke Steffany’s securities salesman registration according to A.R.S. § 44-1962.
FINRA Public Disclosure reveals that on September 11, 2017, a customer filed an investment related arbitration claim, wherein the customer sought $600,000.00 in damages based upon allegations including conversion, suitability, negligence, and fraud during the time that Steffany was associated with Raymond James & Associates, Inc. The customer additionally alleged that Raymond James negligently supervised Steffany’s activities.
Raymond James fired Steffany on May 23, 2014, founded on accusations that he improperly endorsed checks; conduct violative of the firm’s policies. He was later associated with Moors & Cabot, Inc. from July 11, 2014 to October 13, 2015.
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