Robert Spaulding Gleason Jr., of Boston, Massachusetts, a stockbroker registered with Cantella Co. Inc., has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Gleason engaged in excessive trading during the time that he was associated with Cantella Co. Inc. Letter of Acceptance, Waiver, and Consent No. 2021069335701 (April 5, 2024).
According to the AWC, between July 2020 and June 2021, Gleason conducted 91 trades in the account of a retail customer (Customer A,) who was in her early sixties with an income of $50,000.00 and a liquid net worth of $700,000.00. These trades resulted in a cost-to-equity ratio exceeding 28%, indicating that Customer A’s account would need to grow by more than 28% over the 11-month period just to break even. Additionally, the trading activity led to a turnover rate of 12.93, which shows excessive trading was conducted given that the average account balance during this period was approximately $101,000.00. In total, Customer A paid over $28,000.00 in commissions and trading costs.
Gleason recommended a series of transactions that were excessive in relation to the customer’s investment profile. Therefore, he violated FINRA Rule 2010 and Regulation Best Interest (Reg BI) Rule 15l-1(a)(1) under Securities Exchange Act of 1934.
FINRA Public Disclosure shows that Gleason is referenced in two customer initiated investment related disputes concerning his conduct while associated with securities broker dealers. On March 2, 2023, a customer filed an investment related FINRA securities arbitration claim involving Gleason’s conduct in which the customer requested $1,000,000.00 in damages based upon allegations that Gleason engaged in unauthorized and excessive trading in over-the-counter equities and bonds during the time that Gleason was associated with Cantella Co. Inc. The customer also alleged breach of fiduciary duty, negligence, breach of contract, and failure to follow FINRA rules. FINRA Arbitration No. 23-00294.
Gleason was associated with IFP Securities LLC in Owensboro, Kentucky from February 2, 2022, to May 6, 2022. Prior to that, Gleason was associated with Cantella Co. Inc. in Owensboro, Kentucky from November 21, 2016, to December 23, 2021.
