Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Joseph Valdini (Valdini), previously associated with Aegis Capital Corp., has at least 4 disclosable events. These events include 3 customer complaints, one regulatory event, alleging that Valdini recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on July 12, 2022.
Respondent Valdini failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,277,631.00 on August 09, 2021.
Churning and violations of SEC Rule 10b-5; qualitative and quantitative unsuitablity; breach of fiduciary contract; negligent\, misrepresentations and omissions; and violations of FINRA Rule 2010. Alleged activity occurred between September 2015 and\, September 2019.
FINRA BrokerCheck shows a award / judgment customer complaint with a damage request of $1,277,632.37 on July 29, 2021.
Valdini was named in a customer complaint that asserted the following causes of action: churning for commissions and quantitative unsuitability (fraud) (FINRA Rule 2111) and Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934; qualitative and quantitative unsuitability (FINRA Rule 2111); failure to supervise and negligent supervision (FINRA Rule 3010); breach of fiduciary contract and implied covenant of good faith and fair dealing; negligent misrepresentation and omissions; and violation of standards of commercial honor and principles of trade (FINRA Rule 2010).
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,000,000.00 on February 14, 2020.
Churning/excessive trading; common law fraud; NY Consumer Protection Act violations; breach of fiduciary duty; breach of contract; negligence,negligent misrepresentation and omissions; and negligent supervision. Dates of activity are March 2015 through September 2015.
Financial Advisors providing advice to retail investors are required to adhere to the SEC’s Regulation Best Interest (Reg BI). Reg BI applies a ‘best interest’ standard for broker-dealers and their associated people. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or accounts. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or 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 was meant to enhance the duties that registered representatives have to their clients by applying fiduciary principles to transactions and investment strategies by prohibiting brokers from placing their own financial interests ahead of the best interests of their client – the investor. There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which require brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations include three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions.
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. 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. Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Valdini has been in the securities industry for more than 8 years. Valdini has been registered as a Broker with Aegis Capital Corp. since 2016.
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.