One investment salesman traded stocks for a dead client, without prior permission.
Another wrongly recommended high-risk mortgage-backed investments.
These were among the Long Island investment professionals on the most recent disciplinary and complaint list issued by the Financial Industry Regulatory Authority.
FINRA works to protect investors by overseeing the actions of more than 600,000 registered securities representatives nationwide.
Here are the disciplinary cases
Brian James Falabella, Registered Representative, Farmingdale. Suspended Oct. 4-April 3, 2011.
Falabella "induced customers to invest in complex, illiquid and risky collateralized mortgage obligations (CMOs)." He also, "through misrepresentations and omissions… led customers to believe that through CMO investments they could safely achieve consistently high annual returns, regardless of market conditions, with the government backing the investments." He improperly recommended that customers buy the investments on margin, and his actions resulted in considerable losses their retirement savings.
Patrick Joseph McConnell, Registered Representative, Roslyn. Suspended Oct. 18-Nov. 16.
McConnell "submitted a letter of acceptance, waiver and consent in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 30 days." The discipline came in part after "McConnell executed trades in the customer's accounts when the accounts were non-discretionary, and he was aware that the customer was deceased at the time of the trades."
David Owen Lindner, of Bellmore, had his registration revoked for failing to pay fines and/or costs.
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