FINRA Suspends Garden State Securities Broker Raymond John Pirrello Jr.

The Financial Industry Regulatory Authority (FINRA) has sanctioned Raymond John Pirrello Jr. (CRD#: Hackensack, New Jersey), who is a prior general securities representative of Garden State Securities (August 14, 2008 to May 20, 2016). Pirrello consented to FINRA’s imposition of a $20,000.00 fine and 18-month suspension from having any association with a FINRA member pursuant to a Letter of Acceptance, Waiver and Consent #2017053436101, executed on October 24, 2018. FINRA found Pirrello liable for falsifying firm books, giving misleading on-the-record testimony, and failing to disclose a customer complaint.

Raymond John Pirrello Accused By Customer Of Failing To Follow Instructions

The findings in the AWC show that from 2008 to 2015, Pirrello used his personal devices to communicate with a customer, TA, who complained about his activities at Garden State Securities. Not surprisingly, Garden State Securities prohibited brokers including Pirrello from speaking with customers outside of regular business channels. As it turns out, in those communications, the customer stated that Pirrello did not follow the instructions TA provided him regarding TA’s account liquidation. Pirrello seemingly failed to inform Garden State Securities about his discussions with TA. Instead, Pirrello deleted his communication log. Because of this, FINRA Department of Enforcement stated that Pirrello caused Garden State Securities to be unable to comply with FINRA’s and the Exchange Act’s recordkeeping requirements. Thus, FINRA Department of Enforcement stated that Pirrello violated FINRA Rules 4511 and 2010.

Raymond John Pirrello Misleads FINRA Investigators

FINRA Department of Enforcement also found that Pirrello gave misleading testimony to FINRA’s investigators when he was probed about the situation. Pirrello apparently stated that he never communicated with customers through text messages. However, FINRA stated that this was not true because Pirrello sent hundreds of messages to customers and engaged in business dealings with customers without Garden State Securities having any ability to monitor his affairs. As a result, FINRA stated that Pirrello violated FINRA Rules 8210 and 2010.
The findings also show that Pirrello deliberately failed to report TA’s complaint. TA apparently e-mailed Pirrello about his misconduct and failure to take instruction from TA. Notably, TA claimed to have suffered damages totaling $300,000.00. FINRA Department of Enforcement stated that Pirrello was obligated to report TA’s complaint on his U4. Not only did Pirrello fail to do this, but he falsely completed amendments to his U4 by not disclosing the complaint. Furthermore, Pirrello falsely attested in Garden State Securities’ compliance attestations that he kept his U4 current by reporting all customer complaints. Therefore, FINRA Department of Enforcement stated that Pirrello violated FINRA Rules 1122 and 2010.

Raymond John Pirrello Settles Customer Complaint Away From Garden State Securities

FINRA Department of Enforcement also found that Pirrello settled a customer complaint away from the firm. That is, he paid TA $50,000.00 to keep quiet about Pirrello’s misconduct. In addition, another customer, JV, complained to Pirrello about his misconduct. Supposedly, Pirrello paid JV a total of $388,000.00 from 2009 to 2015 to settle JV’s complaint. Pirrello concealed those settlements from Garden State Securities. He evidently lied in his compliance questionnaire about not having settled a complaint away from the firm. Because of this, FINRA stated that Pirrello violated FINRA Rule 2010.
Pirrello’s FINRA BrokerCheck Report shows that customers of Garden State Securities and Barron Chase Securities have brought investment-related actions which allege that Pirrello committed sales practice violations. A summary of two recent complaints follows:

February 22, 2018 Arbitration

 
On February 22, 2018, a customer of Garden State Securities, Inc. named Pirrello as a respondent in FINRA Arbitration #18-00728. First, the customer alleged that Pirrello engaged in unauthorized and aggressive trading. Second, the customer claimed that Pirrello failed to act in a manner that was consistent with industry standards. According to the customer, Pirrello was negligent. Third, the customer accused Pirrello of making unsuitable trades in the customer’s account. Apparently, the sales practice violations concerned the customer’s investments in options, stock and equities from October 2012 to October 2016. As a result, the customer requested $400,000.00 in damages.  While those allegations may be true, the matter is pending.
 

February 22, 2017 Arbitration

 
A customer of Garden State Securities, Inc. brought a FINRA Arbitration #17-00365 on February 22, 2017. That customer claimed that Pirrello made unauthorized trades of equities and options in the customer’s Garden State Securities account. In addition, Pirrello allegedly sold the customer unsuitable investments. Plus, the customer claimed that Pirrello churned the customer’s account. All things considered, Garden State Securities, Inc. paid the customer $300,000.00 to resolve the claim.

If you have experienced losses on your investments because of Raymond John Pirrello, Jr. or another Garden State Securities registered representative, contact Soreide Law Group at (888) 760-6552 and speak with our qualified counsel about a possible recovery. Soreide Law Group represents clients nationwide and only charges a fee upon recovery of losses.