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Albert DeGaetano Suspended By FINRA For Allegedly Executing Unauthorized Trades

Dec 31, 2021 FINRA Suspension

Albert DeGaetano (CRD #: 2458569), formerly registered broker, was suspended by FINRA, according to his BrokerCheck record, accessed on December 14, 2021.  

Albert DeGaetano's suspension stems from allegations related to the following alleged violations:  

  1. Violating FINRA Rule 2010 by executing securities transactions in the accounts of four firm customers without first obtaining their authorization. 
  2. Violating FINRA Rule 2010 by making materially inaccurate statements concerning the identity of his employer and his job title. 

FINRA Rule 2010 requires that all industry members conduct business with high standards of commercial honor.  

FINRA Allegations 

1. Unauthorized Trades 

According to an Acceptance, Waiver, and Consent agreement dated November 17, 2021, Albert DeGaetano consented to the findings that he allegedly executed securities transactions in customer accounts without obtaining their authorization or consent. According to the findings, from December 2017 to November 2018, while associated with Edward Jones, Albert DeGaetano allegedly executed 470 securities transactions in a customer's accounts without the customer's authorization. The customer was a fundraising organization for a charitable hospital. Albert DeGaetano reportedly executed another 353 securities transactions. The 823 securities transactions, which included 389 purchases of ETF bonds, had a total principal value of approximately $7.2 million and generated approximately $113,000 in total trading costs. 

The findings further state that in September 2018, Albert DeGaetano also executed six securities transactions with a total principal value of approximately $30,721 in the individual firm accounts of three other Edward Jones' customers without obtaining their authorization for the transactions. 

A broker must always have the customer's permission before executing any transactions unless they are trading in a discretionary account.  A broker executing unauthorized trades in a customer's account also violates FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade. 

2. Materially Inaccurate Business Card and Related Oral Statements 

From May 2019 to November 2019, while associated with IFS Securities and Cabot Lodge, Albert DeGaetano allegedly made materially inaccurate statements concerning his firm's identity and his job title. IFS Securities and Cabot Lodge had clearing arrangements with the same third-party FINRA member during the relevant period. 

According to the allegations, Albert DeGaetano used the online interface of two of his firms' clearing firm to order business cards identifying him as a senior vice president of the clearing firm. However, Albert DeGaetano was never associated with or employed by the clearing firm and did not hold the title of senior vice president. Nevertheless, he used these cards. He also inaccurately referred to the clearing firm as his employer in calls he made to one of his firms and another individual. 

You can read a copy of the AWC here. 

Sanctions 

As part of the terms of the AWC, Albert DeGaetano consented to: 

  1. A 6-month suspension  
  2. A $7,500 fine 

Employment Termination  

1. Unauthorized Trading Allegations 

On January 25, 2019, Edward Jones fired Albert DeGaetano for allegedly executing trades in a customer's account without authorization. 

2. Violation of Firm Policies Allegations 

On November 15, 2019, Cabot Lodge Securities fired Albert DeGaetano for allegedly violating firm policies, specifically:  

  1. Violating the firm's policy of communications with the public.  
  2. Violating the firm's policy of private securities transactions. 

Dispute Alleging Unauthorized Trades  

According to allegations made on January 17, 2019, Albert DeGaetano placed unauthorized transactions in a client's accounts generating additional commissions. He also allegedly failed to sell assets in the account in a timely manner. The case settled for $120,000. 

Background Information 

Albert DeGaetano has passed the following exams:  

  • Series 66 - Uniform Combined State Law Examination 
  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 - General Securities Representative Examination 

He has also worked with the following firms: 

  • Dean Witter Reynolds (CRD#:7556) 
  • The Ohio Company (CRD#:628) 

Kurta Law Can Help 

If you have been victimized after working with Albert DeGaetano, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.