FINRA Suspends Christopher Gallo for Alleged Excessive Trading

Christopher Gallo (CRD #: 6045888), a broker registered with Joseph Stone Capital, has been suspended by FINRA, according to his BrokerCheck record, accessed on January 11, 2025. Read on if you have questions about his alleged conduct as a broker.

FINRA Suspension

On November 27, 2024, Christopher Gallo consented to the entry of findings that he allegedly violated Regulation Best Interest with regard to trade recommendations made to two clients.

According to a Letter of Acceptance, Waiver & Consent (AWC), Christopher Gallo excessively traded in the accounts of two clients between June 30, 2020 and November 2021. The AWC alleged that he engaged in the following trading:

• Customer A: 54-year-old retiree. Christopher Gallo allegedly recommended 45 transactions, resulting in an annualized turnover rate of 14 and an annualized cost-to-equity ratio of 64%. This trading allegedly resulted in $28,428 in commissions and $95,393 in realized losses.
• Customer B: 73 years old. Christopher Gallo allegedly recommended 120 transactions, resulting in an annualized turnover rate of 16 and an annualized cost-to-equity ratio of 80%. This trading allegedly resulted in $69,553 in commissions and $109,099 in realized losses.

Turnover rate and cost-to-equity ratio are two factors considered when evaluating if trading is excessive. A turnover rate of six or more and a cost-to-equity ratio above 20% are red flags for excessive trading.

The AWC concluded that these allegations constitute violations of Regulation Best Interest and FINRA Rule 2010.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2010

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

Sanctions

Christopher Gallo consented to a five-month suspension from associating with FINRA members. His suspension began on January 6, 2025, and will end on June 5, 2025.

You can access the full AWC here.

Background Information

Christopher Gallo has passed the following exams:

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

Christopher Gallo is a registered broker in California, Massachusetts, New Jersey, New York, and Texas.

He has also worked for Spartan Capital Securities (CRD#:146251).

Kurta Law Can Help

If you worked with Christopher Gallo and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

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 that 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.