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Investors Allege Blaise Caroleo Engaged in Unauthorized and Excessive Trading

Blaise Caroleo (CRD #: 5256393), a broker formerly registered with SW Financial, is named in three pending disputes, according to his BrokerCheck record, accessed on April 26, 2023. Keep reading if you have questions about his alleged conduct as a broker.

Investor Disputes

On March 3, 2023, Blaise Caroleo was named in a dispute alleging unauthorized and excessive trading, excessive commissions, negligence, and violation of the suitability rule. This pending dispute seeks $264,475 in damages.

Another pending dispute, filed on March 21, 2022, made similar allegations and further alleged that Blaise Caroleo engaged in fraud and breached his contract. The investor seeks $210,180.83.

A third pending dispute, filed on December 24, 2020, alleges that Blaise Caroleo engaged in excessive trading and other suitability violations, made negligent misrepresentations and omissions, and breached his contract. The investor alleged that this misconduct occurred between December 2017 and May 2018. The client seeks $411,740 in damages.

FINRA Rule 3260

FINRA Rule 3260 prohibits brokers from conducting discretionary trading outside discretionary accounts, pre-approved for discretionary trading by the firm and the client.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account an investor’s tax status, age, risk tolerance, and other information described in their profile.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 2020

The misrepresentation or omission of information related to investments violates FINRA Rule 2020, which bans the use of manipulation, deception, and other fraudulent tactics to influence investors’ decisions.

What is broker negligence?

Brokers may act in many negligent ways. Common examples include misrepresentations or omissions of fact, unsuitable investment recommendations, and unauthorized trading.

Investors who feel their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

Background Information

Blaise Caroleo has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

He previously worked for the following firms:

  • SW Financial (CRD#:145012) 
  • Worden Capital Management (CRD#:148366)
  • Legend Securities (CRD#:44952)
  • Joseph Gunnar & Company (CRD#:24795)
  • Brookstone Securities (CRD#:13366)
  • J.P. Turner & Company (CRD#:43177)

Kurta Law Can Help

If you worked with Blaise Caroleo and you have concerns about your investments, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.