Victim of Financial Fraud? Call Now

Michael Desando Suspended by FINRA Following Alleged Excessive Trading

Nov 8, 2022 Excessive Trading

Michael Desando (CRD #: 1849321), a broker registered with Network 1 Financial Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on October 22, 2022. Read on if you have questions about his conduct as a broker.

Suspension by FINRA

On August 22, 2022, Michael Desando consented to the entry of findings that he allegedly executed excessive and unsuitable trades in a client’s account.

According to a Letter of Acceptance, Waiver & Consent (AWC), Michael Desando allegedly executed these trades between January 2017 and November 2018 in the account of a client who was a sheriff’s deputy with limited investment experience who relied on him for his advice and recommendations.

Michael Desando allegedly recommended 180 trades with a total principal value of over $1.7 million, despite the client’s account allegedly having an average equity of approximately $30,700. These trades allegedly resulted in an annualized turnover rate of more than 28, a cost-to-equity ratio of 69%, and approximately $37,000 in commissions and other trading costs.

For reference, a turnover rate above 6 and a cost-to-equity ratio above 20% are considered red flags for excessive trading.

The AWC concludes that this alleged trading activity violated FINRA Rules 2111 and 2010.

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 age, risk tolerance, and other characteristics.

Excessive trading (or churning) is quantitatively unsuitable, meaning that the overall number of trades does not fit an investor’s profile.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

FINRA Rule 2010

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

Sanctions

Michael Desando consented to the following sanctions:

  • $5,000 fine
  • 3-month suspension

His suspension began on September 19, 2022, and will end on December 18, 2022.

You can read a copy of the AWC here.

Background Information

Michael Desando has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination

Michael Desando is a registered broker in 14 states.

He has also worked for the following firms:

  • Garden State Securities (CRD#:10083)
  • Global Arena Capital Corporation (CRD#:16871)
  • Ridgeway & Conger (CRD#:113055)
  • First Midwest Securities (CRD#:21786)
  • VFinance Investments (CRD#:44962)
  • Delta Equity Services Corporation (CRD#:15650)
  • First Union Securities Financial Network (CRD#:11025)
  • Northeast Securities (CRD#:25996)
  • PCM Securities Limited (CRD#:28761)
  • Meyers Pollock Robbins (CRD#:13436)
  • Tamaron Investments (CRD#:14929)
  • First America Equities Corporation (CRD#:7652)
  • Brennan Ross Securities (CRD#:18363)
  • Vanderbilt Securities (CRD#:14280)
  • J. T. Moran & Company (CRD#:15655)

Kurta Law Can Help

If you worked with Michael Desando 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 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. 

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab