The Financial Industry Regulatory Authority has barred ex-JP Turner & Co. broker Anthony Mastroianni Jr. for allegedly churning an account belonging to an older customer. Mastroianni has not denied or admitted to the regulator’s findings and he did not appear in front of FINRA to provide testimony in this case.
According to the regulator, from ’11 to ’13, Mastroianni took part in churning or excessive trading in the account of this customer, which was maintained at JP Turner and later at Alexander Capital when the broker was affiliated with the brokerage firms. He also allegedly borrowed $90K from the same customer and made another four transactions without letting either JP Turner or Alexander Capital know and/or getting their approval.
Mastroianni’s BrokerCheck reports notes that there are seven disclosure events in which he has been named, including two customer disputes that are still pending.
Churning
Churning in a client account involves excessive trading for the purpose of making commissions for the broker. Churning violates industry regulations and rules.
Although any kind of trading/investment losses caused by the wrongful or negligent actions of a broker is bad for any investor, these losses can be especially devastating for elderly investors who may no longer be generating income and/or are suffering from mental/health issues. At Shepherd Smith Edwards and Kantas, LTD LLP, our elder financial fraud lawyers are here to work with older investors and their families in recouping their investment fraud losses.
Investment fraud is not the only type of financial fraud plaguing the elderly. According to a new study form the College of Criminology and Criminal Justice at Florida State University, the average age of elderly fraud victims is 72. An earlier report in 2011 from MetLife Market Institute found that $2.9B had been exploited from older victims. Seniors in the 65 and older age group are the fasted growing population in the US.
Contact our senior financial fraud lawyers today.
Ex-JP Turner broker accused of excessive trading in elderly client’s account barred by FINRA, InvestmentNews, December 9, 2016
Churning, SEC.gov