discretion

Morgan Stanley Reportedly Terminates Three High Producing Brokers

January 25, 2017 | Malecki Law Team

It was reported by AdvisorHub on January 24, 2017 that the firm terminated three high producing brokers who were being investigated internally. The three brokers were members of the PC Wealth Management Group.

The first broker, Michael Paesano, was reported to

have been terminated over “concerns” of his “exercise of discretion and investment strategy,” according to the AdvisorHub article. According to Mr. Paesano’s publicly available BrokerCheck report, as maintained by the Financial Industry Regulatory Authority (FINRA), he has been the subject of 15 customer complaints, spanning his employment and registration at two broker-dealers, including Morgan Stanley from May 2011 to January 2017 and UBS Financial Services, Inc. from August 2005 to May 2011. According to Mr. Paesano’s BrokerCheck report and the AdvisorHub article, the most recent customer complaint, alleging unsuitable investments and $1,000,000 in damages, resulted in a settlement of $245,000 to the customer.

BROKER REPORT: Financial Advisor Matthew Meehan

January 20, 2017 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Matthew Meehan. Mr. Meehan was last employed and registered with E.J. Sterling, LLC, a Garden City, New York, broker-dealer, from November 2011 to October 2015, according to his publicly available BrokerCheck, as maintained by the Financial Industry Regulatory Authority (FINRA). He was previously registered with Aegis Capital Corp. from March 2010 to November 2011 and with Gunnallen Financial, Inc. from September 2008 to March 2010, according to BrokerCheck records.

In 2017, Mr. Meehan was fined and suspended from association with any FINRA member broker-dealer for 12 months by FINRA, after submitting a Letter of Acceptance, Waiver and Consent No. 2016050114901 . According to the AWC, Mr. Meehan violated FINRA Rule 2111 (Suitability) and FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) because from January 2014 through June 2015, he exercised discretion without the customers’ written authorization to do so, and engaged in unsuitable trading in several customers’ accounts “resulting in annualized turnover rates of 12, 21, and 32, respectively, and annualized cost-to-equity ratios of 54%, 110%, and 179%, respectively.” Trading at these levels of turnover and cost-to-equity ratios could be considered churning, which is defined as excessive trading by the broker in the client’s account to generate commissions.

FINRA Rules require that recommendations made by the broker to the customer be suitable. This means that the broker must consider the investor’s age, investment experience, age, tax status, other investments, as well as other factors when making a recommendation to buy or sell securities.

BROKER REPORT: Financial Advisor Alexander P. Brown III

July 28, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Alexander P. Brown III. Mr. Brown is currently employed and registered with Capital Portfolio Management, Inc. and works at the broker-dealer’s Timonium, Maryland office, according to his publicly available BrokerCheck records maintained by the Financial Industry Regulatory Authority (FINRA).

Per his BrokerCheck report, Mr. Brown was previously employed and registered by Chapin, Davis from April 2008 to November 2015, a Baltimore, Maryland firm, and was discharged from that firm for “failure to follow written supervisory procedures for marking an account as deceased.” Prior to working at Chapin, Davis, Mr. Brown was employed and registered by Ferris, Baker Watts Incorporated from 2003 to 2008, also out of Baltimore, Maryland, according to his BrokerCheck report.

According to his BrokerCheck report, Mr. Brown was sanctioned in 2016 by the Maryland Securities Division and could not maintain discretionary accounts or serve in a supervisory capacity because he “continued to trade in discretionary account after client deceased while awaiting paperwork to retitle account.”

BROKER REPORT: Financial Advisor Geri Delfino

July 12, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Geri Delfino. Ms. Delfino had been employed and registered with Ameriprise Financial Services, Inc., a broker-dealer, from October 2009 to November 2015, according to her publicly available BrokerCheck, as maintained by the Financial Industry Regulatory Authority.

Per her BrokerCheck report, Ms. Delfino was previously employed by Ameriprise Advisor Services, Inc. from 2006 to 2009, Advest, Inc. from 2000 to 2006, and A.G. Edwards & Sons, Inc. from 1991 to 2000.

Ms. Delfino was fined and suspended for 20 days from association with any FINRA member broker-dealer by FINRA according to a Letter of Acceptance, Waiver and Consent No. 2015047790401 (AWC). According to the AWC, Ms. Delfino violated NASD Conduct Rule 2510(b) (Discretionary Accounts) and FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) for: