Troy Orlando Barred by FINRA for Alleged Refusal to Provide Testimony

Troy Orlando (CRD #:6055474), a broker formerly registered with Craft Capital Management, has been barred by FINRA, according to his BrokerCheck record, accessed on December 14, 2024. Read on to learn more about Troy Orlando’s alleged conduct as a broker.

Bar by FINRA

On November 20, 2024, Troy Orlando consented to the entry of findings that he allegedly refused to appear for on-the-record testimony requested by FINRA in connection with an investigation.

A Letter of Acceptance, Waiver & Consent (AWC), FINRA was allegedly investigating Craft Capital Management and the suitability of its recommendations.

The AWC concluded that Troy Orlando’s alleged refusal to provide testimony violated FINRA Rules 8210 and 2010.

FINRA Rule 8210

FINRA Rule 8210 requires members to supply records, information, and testimony upon request by FINRA.

FINRA Rule 2010

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

Sanctions

Troy Orlando was permanently barred by FINRA starting November 20, 2024. You can read the full AWC here.

FINRA Suspension

On November 22, 2023, Troy Orlando consented to the entry of findings that he allegedly recommended a series of trades in five client accounts that were excessive, unsuitable, and not in their best interest from January 2018 through November 2020.

According to a Letter of Acceptance, Waiver & Consent (AWC), Troy Orlando allegedly recommended high frequency trading that resulted in high turnover rates and cost-to-equity ratios. When evaluating whether trading is excessive, turnover rates over 6 and cost-to-equity ratios over 20% are considered red flags.

Troy Orlando’s clients allegedly regularly accepted his recommendations, giving him de facto control over their accounts. His recommendations allegedly had the following consequences:

• Customer A: Trading resulted in an annualized turnover rate of 20 and an annualized cost-to-equity ratio of 87% and generated $38,513 in total trading costs and $80,072 in realized losses.
• Customer B: Trading resulted in an annualized turnover rate of 32 and an annualized cost-to-equity ratio of 172% and generated $24,988 in total trading costs and $12,818 in realized losses.
• Customer C: Trading resulted in an annualized turnover rate of 62 and an annualized cost-to-equity ratio of 221%, generating total trading costs of $65,934 and $37,998 in realized losses.
• Customer D: Trading resulted in an annualized turnover rate of 93 and an annualized cost-to-equity ratio 279%, resulting in total trading costs of $62,281 and $40,710 in realized losses.
• Customer E: Trading resulted in an annualized turnover rate of 37 and an annualized cost-to-equity ratio 132%, resulting in total trading costs of $40,082 and $26,582 in realized losses.

The AWC concluded that these allegations constituted violations of the Best Interest Obligation under Rule 15l-1 of the Securities Exchange Act of 1934 FINRA Rules 2111 and 2010.

Regulation Best Interest

Regulation Best Interest expands on the requirements of FINRA Rule 2111, which defines suitable investment recommendations. In addition to limiting their recommendations to investments that suit their investors’ needs, brokerage firms must also uphold a Duty of Care, the Conflict of Interest Obligation, and the Disclosure Obligation. These obligations and duties require brokerage firms to disclose conflicts of interest. Firms must also research the market for investments that could offer similar benefits at a lower cost prior to making a recommendation.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which describes characteristics such as their age, risk tolerance, investing experience, and financial goals.

Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.

Sanctions

Troy Orlando consented to the following sanctions:

• 20-month suspension from associating with FINRA members
• Restitution of $58,082.50 plus interest

His suspension began on December 4, 2023, and will end on August 3, 2025. You can access the full AWC here.

Bankruptcy

On January 11, 2022, Troy Orlando discharged a bankruptcy.

Tax Lien 

On October 28, 2021, Troy Orlando became the subject of a tax lien for $7,568. 

Background Information

Troy Orlando has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Troy Orlando previously worked with the following firms:

• Craft Capital Management (CRD#:171350)
• Joseph Gunnar & Company (CRD#:24795)
• Joseph Stone Capital (CRD#:159744)
• Worden Capital Management (CRD#:148366)
• Spartan Capital Securities (CRD#:146251)
• J.H. Darbie & Co. (CRD#:43520)

Kurta Law Can Help

If you have worked with Troy Orlando and have concerns about your investments, 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.