Todd Anthony Cirella of Melville, New York, a stockbroker registered with Laidlaw Company Ltd., 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 Cirella made unsuitable recommendations and engaged in churning or excessive trading. Letter of Acceptance, Waiver, and Consent No. 2020065683301 (January 31, 2023).
According to the AWC, between June of 2020 and January of 2021, when he was associated with Laidlaw & Company Ltd, Cirella recommended a number of trades that were unsuitable and excessive in an account held by a senior customer. Specifically, Cirella recommended 46 transactions that generated $27,566.00 in trading costs and commissions and which caused the customer to experience trading losses of $12,000.00.
The transactions also caused an annualized turnover rate of 20.39 and an annualized cost-to-equity ratio of 37.65 percent. FINRA states that a cost-to-equity ratio of that magnitude would require the customer’s account to grow by 37 percent annually to break even. Cirella violated FINRA Rules 2010 and 2111. Cirella also violated Securities Exchange Act of 1934 Rule 15l-1.
FINRA Public Disclosure shows that Cirella is referenced in two customer initiated investment related disputes concerning Cirella’s conduct while associated with Laidlaw Company Ltd. On June 3, 2010, a customer initiated investment related complaint involving Cirella’s conduct was settled for $60,000.00 in damages based upon allegations that Cirella engaged in unauthorized trading and charged excessive commissions in connection with the sale of stocks.
On October 22, 2010, another customer initiated investment related FINRA securities arbitration claim involving Cirella’s conduct was settled for $80,000.00 in damages based upon allegations that Cirella churned accounts, breached a contract, engaged in unauthorized trading, made unsuitable recommendations of stocks and over-the-counter equities, made misrepresentations of material fact, breached his fiduciary duties, and committed fraud. FINRA Arbitration No. 09-06628.
Cirella has been associated with Laidlaw Company (UK) Ltd. in Melville, New York, as a stockbroker since July 16, 2004.
