SEC Bars Garden State Stockbroker For Fraud
Raymond John Pirrello Jr. of Hackensack New Jersey a stockbroker formerly registered with Garden State Securities Inc. has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment advisor or otherwise associating with any securities broker dealer or investment adviser based upon a judgment rendered against the stockbroker permanently enjoining him from engaging in future violations of federal securities laws or rules. Securities and Exchange Commission (SEC) Order No. 3-19482 (Sept. 23, 2019).
This is not the first time that Pirrello has been the subject of a regulatory action founded on accusations of the stockbroker’s misconduct in the securities industry.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Pirrello has also been fined $20,000.00 and suspended for eighteen months from associating with any FINRA member in any capacity supported by findings of the stockbroker’s unauthorized communication channels to conduct investment related business; a customer complaint against the stockbroker which alleged that he caused $300,000.00 in losses by failing to follow the customer’s instructions when employed by Garden State Securities; and the stockbroker’s false or misleading testimony to FINRA personnel in regards to his communications with customers. Letter of Acceptance Waiver and Consent No. 2017053436101 (Nov. 20, 2018).
FINRA Public Disclosure also indicates that Pirrello is the subject of eleven total customer initiated investment related disputes pertaining to allegations of his bad business practices during the period in which the stockbroker had been employed by securities broker dealers including Garden State Securities.
Specifically, a customer filed an investment related arbitration claim pertaining to Pirrello’s conduct in which the customer requested $400,000.00 in damages supported by allegations that when Pirrello had been employed by Garden State Securities, options, stocks and over the counter equities that were purchased in the customer’s account by the stockbroker failed to be suitable because of the customer’s investment circumstances; the customer’s account had been imprudently managed by the stockbroker; and transactions were facilitated without consent from the customer. FINRA Arbitration No. 18-00728 (Feb. 26, 2018).
Another customer initiated related arbitration claim involving Pirrello’s conduct was settled for $300,000.00 in damages based upon allegations that when Pirrello was associated with Garden State Securities, the customer’s account was handled by the stockbroker in a negligent manner; transactions effected in the customer’s account were not appropriate for the customer given the customer’s risk tolerance, investment objectives or overall situation; the customer’s investment portfolio was churned by the stockbroker; and options and equities trades were effected in the customer’s account by the stockbroker without the customer’s knowledge or consent. (FINRA) Arbitration No. 17-00365 (Apr. 18, 2018).
Pirrello’s registration with Garden State Securities has been terminated as of May 20, 2016.