Patrick William Lofaro, of Melville, New York, a stockbroker with Rockwell Global Capital LLC, was fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in the unauthorized discretionary trading in a customer account. Letter of Acceptance, Waiver and Consent, No. 2014039317001 (Aug 1, 2016).
According to the AWC, on July 1, 2014, Lofaro had purchased five thousand shares of GT Advanced Technologies Inc. stock in the customer account of JS, despite JS not providing the requisite authorization to Lofaro. The transaction reportedly involved $98,497.00 of JS’s funds.
Lofaro was also found to have engaged in the unauthorized communications with customers from March of 2014 through July of 2014, in order to conduct his securities business with two of the firm’s customers. In one of the cases, Lofaro’s communications pertained to customer JS’s complaints to Lofaro concerning his account performance. JS reportedly complained to Lofaro about commissions that were charged on an account trade in JS’s account, as well as the aforementioned unauthorized transaction.
FINRA found that Lofaro’s unauthorized trading in the customer’s account was violative of FINRA Rule 2010. Additionally, Lofaro was found by FINRA to have violated FINRA Rule 2010 as a result of using unauthorized e-mail to communicate with firm customers, causing his firm to violate responsibilities pertaining to recordkeeping.
Public disclosure records reveal that Lofaro has been subject to seven customer disputes. On November 19, 2010, Lofaro was named in a customer dispute where the customer requested $5,000.00 in damages after alleging that Lofaro engaged in transactions in a manner which was contrary to the customer’s instructions.
On November 7, 2013, Lofaro was named in a customer dispute, where a customer requested $9,800.35 in damages after alleging that Lofaro engaged in unauthorized trading. On July 11, 2014, Lofaro settled a customer dispute for $24,147.50 amid allegations of unauthorized trading.
On November 20, 2014, Lofaro settled a customer dispute for $180,000.00 after a customer claimed breach of fiduciary duty, unsuitability, churning, fraud, breach of contract, and negligent supervision. On November 20, 2014, Lofaro was named in a pending customer dispute, in which a customer has claimed damages of $837,131.00 after alleging the unsuitability of investments.
Prior to his association with Rockwell Global, Lofaro was associated with at least a dozen brokerage firms, including the defunct or notable rogue brokerage firms of Kensignton Wells, Morgan Taylor & Associates, Donald & Co., Harrison Securities, and of course,GunnAllen Financial.
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