Gary Costello Terminated by Truist Following $2.1 Million Investor Dispute
Gary Costello (CRD #: 6117388) has been fired by Truist Investment Services following multiple investor disputes. These disclosures appear on his BrokerCheck record, accessed on October 9, 2023. He is also the subject of a $2.1 million investor dispute. Despite his recent termination, Gary Costello is currently registered with Aegis Capital Corp.
On August 14, 2023, Truist Investment Services fired Gary Costello following allegations involving an investigation into various trade corrections and margin activity in his personal accounts as well as client accounts.
Trade corrections may indicate stock market manipulation.
What is Margin Investing?
Investing on margin is when an investor opens a margin account and borrows money from a brokerage firm in order to purchase more securities. Using borrowed money is called “leverage” and it increases the risk that the investor will lose money. Margin accounts may come with interest charges, significant broker fees, and the risk of a margin call.
Margin calls happen when the broker needs more money in the account in order to cover the minimum margin requirement. If the investor does not deposit money in the margin account, the broker may liquidate securities in the investor’s account in order to cover the minimum.
Utilizing margin is often unsuitable and investors should be made aware of the risks before purchasing securities on margin.
$2.1 Million Investor Dispute
On September 25, 2023, investors alleged that Gary Costello engaged in excessive trading. Excessive trades rack up fees that create unfair losses for investors. They also violate FINRA Rule 2111.
The investor further alleged that Gary Costello made unauthorized withdrawals, breached his duty of good faith and fair dealing, and violated state securities laws, among other allegations.
Unauthorized Trading Allegations
Disputes from August 2023 allege that Gary Costello engaged in unauthorized trading. Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts.
Gary Costello has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
- Series 6 Investment Company Products / Variable Contracts Representative Examination
He is a registered broker in 10 states, D.C., and Puerto Rico. He is also a registered investment adviser in Texas.
Gary Costello has registered with the following firms:
- Truist Advisory Services (CRD #: 283390)
- Truist Investment Services (CRD #: 17499)
- Oppenheimer & Co. (CRD #: 249)
- Morgan Stanley (CRD #: 149777)
- Park Avenue Securities (CRD #: 46173)
Kurta Law Can Help
If you worked with Gary Costello and have concerns about your investments, please contact us today at 877-600-0098 or email@example.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.