The Financial Industry Regulatory Authority (“FINRA”) reports troubling information in regard to securities broker John Anthony Borsellino (CRD#: 2006663, Stamford, Connecticut). Notably, FINRA issued Borsellino a fine and suspension for his unsuitable recommendations. Not only that, but the securities broker, who worked for Merrill Lynch and Morgan Stanley, is involved in investor disputes. It seems that Borsellino’s clients contested his investment recommendations and representations. Here’s more:
FINRA Issues Suspension, Fine To John Borsellino
Evidently, the financial industry watchdog suspended John Borsellino from December 16, 2019 to March 15, 2020 and required him to pay a $5,000 fine because he violated FINRA rules by recommending unsuitable transactions for clients. FINRA says that Borsellino recommended bonds and non-municipal securities that caused clients to pay a heavy price up front for no good reason.
In fact, FINRA suggested that John Borsellino could have purchased the securities for clients without any upfront sales charges. Evidently, by purchasing these securities outside of clients’ fee-based accounts, they paid $58,000 more. Because of this, the findings indicate that Borsellino was unreasonable with regard to his recommendations. Namely, he did not take into account the costs of the securities transactions he recommended for his clients.
Apparently, Morgan Stanley Wealth Management disaffiliated with John Borsellino because of its concerns about his trading between accounts and his unauthorized trading.
Merrill Lynch Clients File Disputes About Borsellino
A handful of Merrill Lynch clients filed disputes over John Borsellino’s sales practices. Namely, a Merrill Lynch client suggested in a dispute that as financial advisor, Borsellino made unsuitable recommendations and misrepresentations. Merrill Lynch settled that dispute in ’07 through a payment of $135,000 to the client.
A similar dispute in ‘06 concerned John Borsellino’s recommendations. Namely, the client indicated that Borsellino was not providing suitable advice. In addition, it seems that the client gave Borsellino instructions, but Borsellino failed to follow them. For this reason, Merrill Lynch opted to pay the client $85,000.
Merrill Lynch Client Indicates John Borsellino Made Unauthorized Trades
BrokerCheck shows complaints from ‘02 which suggest that John Borsellino made unauthorized trades in clients’ retail accounts. In one dispute, a client indicated that Borsellino made an unauthorized mutual fund purchase. A separate client refers to unauthorized Broadband Holders Callable UT. In a third complaint, a customer contended that Borsellino failed to be clear about sales charges on his trades.
Losses By Investing Through Borsellino?
Have you experienced losses by investing with broker John Borsellino? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Borsellino.