FINRA Suspends Mario Divita for Allegedly Failing to Supervise
Mario Divita (CRD #: 1504199), a broker registered with Traderfield Securities, is the subject of a FINRA suspension, according to his BrokerCheck record, accessed on January 25, 2022. Keep reading if you have concerns about Mario Divita’s conduct as a broker.
Regulatory Allegations
According to an Acceptance, Waiver, and Consent agreement dated November 24, 2021, Mario Divita consented to the findings that he failed to supervise a registered representative (Broker A) who recommended excessive trading in customer accounts.
Mario Divita allegedly did not take reasonable steps to monitor excessive trading in the broker’s customer accounts. He also failed to catch losses in customer accounts, which were significant. He allegedly should have known that the broker’s commissions were a red flag.
Excessive trading, or “churning,” occurs when brokers execute excessive trades for the sake of commissions.
- Broker A’s trading in 16 customer accounts resulted in annualized turnover ratios as high as 40 and cost-to-equity ratios ranging from 27% to 173%.
- FINRA states that a turnover rate of six and an annualized cost-to-equity ratio above 20% indicates excessive trading.
Mario Divita’s failure to supervise the broker permitted excessive trading in customer accounts to continue. As a result, customers were charged a total of $451,057 in commissions and suffered $538,057 in losses.
You can read a copy of the AWC here.
FINRA Suspension and Fine
As part of the terms of the AWC, Mario Divita consented to the following:
- A three-month suspension
- A $5, 000 fine
- Within 90 days of consenting to the AWC, Mario Divita should attend and satisfactorily complete 24 hours of continuing education concerning supervisory responsibilities.
Investor Disputes
Mario Divita has two settled disputes on his record alleging fraud and misrepresentation. The disputes were collectively settled for $64,500.
Background Information
Mario Divita has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- Series 57TO – Securities Trader Exam
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 4 – Registered Options Principal Examination
- Series 24 – General Securities Principal Examination
- Series 27 – Financial and Operations Principal Examination
She is a registered broker in Nevada and New York.
Besides Traderfield Securities, Mario Divita has worked with the following firms:
- Quasar Trading (CRD#:151974)
- Morgan Stanley DW (CRD#:7556)
Kurta Law Can Help
If you have been victimized after working with Mario Divita, 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.