FINRA Sanctions International Assets Broker For Defective Investment Advice
Robert James D’Andria (also known as Bob D’Andria) of Spring Lake New Jersey a stockbroker currently registered with International Assets Advisory LLC has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that D’Andria provided customers of the securities broker dealer with defective investment advice about non-traditional exchange traded products. Letter of Acceptance Waiver and Consent No. 2017056579502 (Jan. 3, 2020).
According to the AWC, between October of 2014 and September of 2015, at least twenty-one non-traditional exchange traded products had been recommended to five of D’Andria’s customers by the stockbroker. FINRA indicated that these investments are meant to produce several times the performance of a benchmark or index and can even be designed to produce the opposite of that benchmark or performance. The AWC stated that the investments generally reset daily which means that they are not appropriate for long term investors. The customers advised by D’Andria held these investments between thirty and seven hundred fifty-eight days. FINRA stated that these investments produced $93,000.00 in losses.
FINRA indicated that there was no reasonable basis suitability analysis of the speculative investments undertaken by D’Andria precluding the stockbroker from comprehending the special risks of these investments at the time that he advised customers to purchase them. FINRA also revealed that the non-traditional exchange traded product prospectuses reflected that these investments contained high levels of risk and were meant to be traded daily by investors who possessed experience and who had time to frequently and actively review their portfolios. FINRA also mentioned that D’Andria neglected to comprehend that losses on the speculative investments could be compounded because of the daily reset feature. The AWC stated that D’Andria’s unsuitable recommendations were violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure reveals that D’Andria has been identified in three customer initiated investment related disputes pertaining to allegations of his violative conduct while associated with Merrill Lynch Pierce Fenner Smith Inc. Specifically, a customer filed an investment related complaint involving D’Andria’s conduct in which the customer requested $41,363.17 in damages based upon allegations that over-the-counter equities transactions were effected in the customer’s account without the customer’s knowledge or consent.
Another customer filed an investment related complaint involving D’Andria’s conduct in which the customer requested more than $5,000.00 in damages based upon allegations that call options had been purchased by the stockbroker without the customer’s permission. Also, a customer initiated investment related arbitration claim involving D’Andria’s conduct was settled for $30,000.00 in damages based upon allegations that margin was inappropriately utilized in the customer’s account; zero coupon bonds had been purchased without the customer’s authorization; and false or misleading statements had been made to the customer concerning Debit Strategies Fund.