The Financial Industry Regulatory Authority’s Department of Enforcement has filed a disciplinary proceeding complaint against former broker Adam Belardino. The complaint alleges that Mr. Belardino failed to cooperate with a FINRA investigation, which was initiated in Aril 2019 after Mr. Belardino’ s employment was terminated by MML Investors Services, LLC and disclosed (through a Form U5) that it discharged Mr. Belardino “in connection with [an] investigation into a customer complaint. The Form U5 (Uniform Termination Notice for Securities Industry Registration) also disclosed a complaint from customers alleging that beginning in November of 2018, Mr. Belardino “misrepresented [the customers’] account values, engaged in excessive levels of trading, and failed to comply with requests to have their accounts liquidated and the proceeds distributed. Additional customer complaints were subsequently disclosed, including a customer alleging that “the REITs that were sold to him [by Mr. Balardino] beginning in or around 2014 were unsuitable for his conservative portfolio.”
At the time of the alleged conduct, Mr. Balardino was associated with MML Investors Services, LLC (“MML Investor Services”) in Elmsford, New York. Prior to being a broker at MML Investor Services, Mr. Belardino was associated with MSI Financial Services, Inc. (“MSI Financial Services”), also in Elmsford, New York.
If you or a loved one were a customer of broker Adam Belardino, MML Investor Services, LLC, or MSI Financial Services, Inc., contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your legal rights.
Financial Advisor Adam Gerard Belardino (CRD No. 5221927)
Mr. Belardino had 11 years of experience in the securities industry and has been associated with three different firms:
- MML Investors Services, LLC in Elmsford, New York, from March 2017 to April 2019.
- MSI Financial Services, Inc. in Elmsford, New York, from October 2007 to March 2017.
- Metropolitan Life Insurance Company in Iselin, New Jersey, from May 2007 to July 2007.
- Metlife Securities Inc. in Shelton, Connecticut, from May 2007 to October 2007.
In terminating Mr. Belardino’s employment in March 2019, the Massachusetts Mutual Life Insurance Company alleged that the termination was connected to an investigation into a customer complaint.
Mr. Belardino has also been the subject of at least six customer disputes:
- Customer Dispute (March 2021): A customer filed a complaint with MSI Financial Services, Inc., alleging that a REIT that was sold to him was not suitable for his conservative portfolio. The customer did not file a securities arbitration complaint and instead complained directly to the firm. The dispute is pending.
- Customer Dispute (April 2020): A customer filed a complaint with MML Investor Services alleging that Mr. Belardino misrepresented the features and risk of a Variable Universal Life policy, including that he could lose the value of the policy if he failed to pay the premiums. The firm settled the matter for $51,133.
- Customer Dispute (May 2019): Customers filed a complaint with MSI Financial Services, Inc. alleging that Mr. Belardino misrepresented the features of an annuity and/or Business Development Corporation. The customers also alleged that Mr. Belardino acted without their consent. The customers did not file a securities arbitration complaint and instead complained directly to the firm. The firm denied the customers any compensation.
- Customer Dispute (May 2019): Customers filed a complaint with MML Investor Services alleging that Mr. Belardino conducted unauthorized transactions and solicited new accounts under false pretenses using forged signatures. MML Investor Services settled the matter for $69,408.
- Customer Dispute (April 2019): Customers filed a complaint with MML Investor Services alleging that in and around July 2018, mutual fund trades were executed in their joint brokerage account without their consent, and the signatures used were not valid. The customers also alleged that they had never agreed to the policy premium on a whole life insurance policy, nor was the policy ever delivered to them. The customers further alleged that a VUL policy was surrendered without their knowledge, and as a result, surrender fees were incurred. MML Investor Services settled the matter for $6,783.
- Customer Dispute (March 2019): A customer filed a complaint with MML Investors Services, LLC, alleging Mr. Belardino misrepresented their account values, engaged in excessive levels of trading, and failed t comply with requests to have their accounts liquidated and the proceeds distributed. MML Investor Services settled the matter for $1,53,066.
Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.
Unauthorized trading often occurs in non-discretionary accounts, where a customer retains discretion. In non-discretionary accounts, brokers must obtain a customer’s permission every time before placing a trade.
Excessive trading and unauthorized trading are unethical and illegal practices. They are all also violations of securities rules and regulations and can cause enormous harm to customers.
MML Investors Services, LLC and MSI Financial Services, Inc. – Supervisory Duties
Brokerage firms like MML Investors Services, LLC and MSI Financial Services, Inc. must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise their financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you or a loved one were a customer of broker Adam Belardino, MML Investor Services, LLC, or MSI Financial Services, Inc. and either sustained financial losses or suspect that Mr. Belardino did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account or annuity.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.