Investors Sue Oppenheimer For Securities Fraud
Matthew J. Giannone of Melville New York a stockbroker formerly registered with Oppenheimer Co. Inc. is the subject of a customer initiated investment related arbitration claim which was resolved for $45,000.00 in damages founded on allegations that (1) misrepresentations had been made to the customer (2) the customer’s account was mishandled (3) contractual obligations to the customer had not been complied with (4) fiduciary duties owed to the customer were breached (5) transactions were executed in the customer’s account in an excessive manner (6) stock trades were not suitable for the customer (7) Oppenheimer Co. Inc. failed to supervise Giannone’s activities in the customer’s investment account and (8) the customer was defrauded. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-00650 (Sept. 6, 2018).
FINRA Public Disclosure confirms that Giannone is referenced in twelve more customer initiated investment related disputes pertaining to accusations of his violative conduct while employed with Merrill Lynch Pierce Fenner Smith Inc., Smith Barney and Oppenheimer Co. Inc. Specifically, on June 6, 2017 a customer initiated investment related complaint concerning Giannone’s conduct was settled to resolve allegations that while Giannone was associated with Oppenheimer Co. Inc., unauthorized trades were effected in the customer’s account; and the customer was sold equity products that were in no way appropriate for the customer given the customer’s objectives for investing or tolerance for risk.
Subsequently, a customer initiated investment related arbitration claim concerning Giannone’s activities was resolved for $350,000.00 in damages based upon accusations that the customer’s funds had been improperly borrowed by Giannone; and the customer was provided bad investment recommendations regarding stock investments held in the customer’s account. FINRA Arbitration No. 16-00230 (Dec. 15, 2017).
Moreover, a customer filed an investment related arbitration claim regarding Giannone’s conduct where the customer requested $1,170,500.00 in damages supported by allegations that between June 1, 2013 and October 1, 2016: contractual and fiduciary duties were breached, securities laws had been violated in reference to the transactions executed in the customer’s investment account; trades were effected in the customer’s account on an excessive, unsuitable; and unauthorized basis; the customer’s account had been mismanaged and unsupervised; and the customer was defrauded. FINRA Arbitration No. 19-00072 (Jan. 9, 2019).
Giannone has also been fined $7,500.00 and suspended from associating with any FINRA member in any capacity based upon consenting to findings that he entered into an unapproved customer loan arrangement with a customer and engaged in unauthorized customer correspondence; conduct violative of FINRA Rules 2010, 3240 and 4511(a). Letter of Acceptance Waiver and Consent No. 2015048067801 (Dec. 28, 2016).
Giannone was discharged by Oppenheimer on November 15, 2016 founded on the accusations subject of the FINRA disciplinary action against Giannone.