According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Adam Belardino (Belardino), previously associated with MML Investors Services, LLC, has at least 5 disclosable events. These events include 2 customer complaints, 3 regulatory events, alleging that Belardino recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on June 16, 2023.
The SEC deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 203(f) of the Investment Advisers Act of 1940 (‘Advisers Act’) against Adam Belardino (‘Respondent’). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the ‘Offer’) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, Respondent admits the Commission’s jurisdiction over him and the subject matter of these proceedings, and the findings contained herein, and consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (‘Order’), as set forth below. On the basis of this Order and Respondent’s Offer, the Commission finds that on October 20, 2022, Belardino pleaded guilty to two counts of wire fraud in violation of Title 18 United States Code, Sections 1343, and one count of making false statements in violation of Title 18 United States Code, Section 1001, before the United States District Court for the Southern District of New York, in United States v. Adam Belardino, 7:22-cr-00233-KMK. On February 9, 2023, a judgment in the criminal case was entered against Belardino. He was sentenced to a prison term of 42 months followed by three years of supervised release and ordered to make restitution in the amount of $501,499.67. The counts of the criminal information to which Belardino pled guilty alleged, inter alia, that Belardino embezzled money from an investor on materially false and fraudulent pretenses and that he used interstate emails and texts in connection with the scheme. Instead of investing the client’s money for her, Belardino diverted the money he received for improper purposes, including paying for overhead expenses and for personal use.
FINRA BrokerCheck shows a final customer complaint on May 12, 2021.
Belardino was named a respondent in a FINRA complaint alleging that he failed to appear for on-the-record (OTR) testimony requested by FINRA. The complaint alleges that FINRA began investigating the circumstances of Belardino’s termination from his former member firm. The firm filed a Form U5 disclosing that it discharged Belardino in connection with an investigation into a customer complaint. The Form U5 also disclosed a complaint from customers alleging that Belardino misrepresented the customers’ account values, engaged in excessive levels of trading, and failed to comply with requests to have their accounts liquidated and the proceeds distributed. Following the initial Form U5, the firm filed multiple Form U5 amendments that disclosed new complaints from customers. The last Form U5 amendment disclosed a new complaint from a customer alleging that the securities sold to him by Belardino were unsuitable for his conservative portfolio. FINRA requested that Belardino provide a signed statement addressed to FINRA in response to certain allegations customers made against him, documents related to those allegations, a description of the circumstances of his termination from the firm, and whether there were any other customer complaints made against him. Belardino provided a response in which he stated, among other things, that he was unable to respond to the allegations related to some of the customer complaints because he did not have access to any of the relevant documents. In furtherance of its investigation, including to show Belardino relevant documents and obtain complete responses regarding the customer allegations made against him, FINRA scheduled OTR testimony for Belardino. Belardino failed to appear for the OTR testimony. FINRA rescheduled the OTR testimony for another date. Belardino again failed to appear for the OTR testimony.
FINRA BrokerCheck shows a settled customer complaint on March 01, 2021.
The complainant alleges that the REITs that were sold to him beginning in or around 2014 were unsuitable for his conservative portfolio.
FINRA BrokerCheck shows a final customer complaint on December 23, 2020.
Respondent Belardino failed to appear for on-the-record testimony.
FINRA BrokerCheck shows a settled customer complaint on April 09, 2020.
The complainant alleges that his representative misrepresented the Variable Universal Life policy he purchased in 2017. The complainant states that it was never explained to him, that he could lose the value in the policy, if he failed to pay the premiums.
When your financial advisor is providing advice they must adhere to the SEC’s Regulation Best Interest (Reg BI) rule and standard of care. Reg BI replaced the former “suitability” rule and created a ‘best interest’ standard for brokerage firms and registered representatives. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest. Reg BI comes with different core obligations that brokers must comply with. There is the duty of care obligation requiring financial advisors to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest among other duties. In order to do that the broker must evaluate the potential risks, rewards, and costs associated with a product, account type, or series of transactions being recommended.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest. In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
Belardino has been in the securities industry for more than 11 years. Belardino has been registered as a Broker with MML Investors Services, LLC since 2017.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.