Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority “(FINRA”) has suspended Cadaret, Grant & Co., Inc. broker Matthew Zanowiak from the securities industry for ten business days for exercising discretion without written authorization in approximately 15 customer accounts. Mr. Zanowiak was also fined $5,000.
If you have lost money with Matthew Zanowiak or Cadaret, Grant & Co., Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Iorio Altamirano LLP represents investors who have disputes with their financial advisors or brokerage firms, such as Cadaret Grant & Co., Inc.
FINRA Letter of Acceptance, Waiver, and Consent (“AWC”) No. 2019060749103
Matthew Zanowiak and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on June 7, 2021, after FINRA alleged that Mr. Zanowiak violated NASD Rule 2510(b) and FINRA Rule 2010.
NASD Rule 2510(b) prohibits registered representatives from exercising any discretionary power in a customer’s account unless the customer has provided prior written authorization to the representative and the account has been accepted as a discretionary account by the representative’s firm in writing. A violation of NASD Rule 2510(b) is also a violation of FINRA Rule 2010.
FINRA Rule 2010 requires member firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
In April 2019, Mr. Zanowiak executed approximately 52 discretionary trades in 15 customer accounts. Although the customers knew that Mr. Zanowiak was exercising discretion in their accounts, Mr. Zanowiak did not have prior written authorization to do so from any of the customers. Additionally, Cadaret Grant & Co., Inc. had not approved any of the accounts for discretionary trading.
A broker who engages in discretionary trading without proper authorization runs afoul of unauthorized trading rules.
Financial Advisor Matthew Gregory Zanowiak (CRD#: 1142281)
Mr. Zanowiak first became registered with FINRA in 1983. He has 37 years of experience in the securities industry and has been registered as a broker with Cadaret, Grant & Co., Inc. in Lancaster, PA, since 2002.
Mr. Zanowiak’s current suspension is not the first time he has been the subject of regulatory sanctions. On September 5, 2003, the Pennsylvania Department of Banking and Securities ordered Mr. Zanowiak to pay $5,500 in costs and disgorge $750 in commissions based on findings that he sold unregistered securities to a Pennsylvania resident (Docket No. 2003-06-24).
According to his public disclosure report with FINRA, Mr. Zanowiak has also been the subject of three customer disputes:
- Customer Dispute (July 2014): A customer filed a written complaint with Cadaret, Grant & Co., Inc. in July 2014 alleging that Mr. Zanowiak errored in providing financial planning advice. The customer alleged $8,219 in damages. The customer did not file a securities arbitration complaint and instead complained directly to the firm. The firm denied the customer any compensation.
- Customer Dispute (March 2010): A customer filed a written complaint with Cadaret, Grant & Co., Inc. in March 2010 alleging that Mr. Zanowiak and the issuing insurance company incorrectly state that a market value adjustment would not be assessed on an asset transfer. The customer alleged $14,891 in damages. Zanowiak and Cadaret, Grant & Co., Inc. settled the matter for $14,891.
- Customer Dispute (March 2009): A customer filed a written complaint with Cadaret, Grant & Co., Inc. in March 2009, alleging $13,500 in damages. The complaint alleged that Mr. Zanowiak made misrepresentations in connection with a variable annuity recommendation and that the recommendation was unsuitable for the customer. The customer did not file a securities arbitration complaint and instead complained directly to the firm. The firm denied the customer any compensation.
Cadaret, Grant & Co., Inc. – A Duty to Supervise
Financial institutions like Cadaret Grant & Co., Inc. must properly supervise financial advisors and customer accounts. Brokerage firms must 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 supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Matthew Zanowiak, or Cadaret, Grant & Co., Inc., contact FINRA arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.