Securities Arbitration Lawyer Blog
A FINRA Dispute Resolution Services arbitration panel in Boca Raton, Florida, ordered SunTrust Investment Services, Inc. and SunTrust Advisory Services, Inc. (collectively “SunTrust”) to pay a customer $200,000 over losses in the customer’s discretionary account with the firms.
Additionally, the arbitration panel denied SunTrust’s request for expungement on behalf of broker Jeffrey Paul Oliverio. Mr. Oliverio was not a party to the arbitration.
Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as SunTrust.
If you have lost money with Jeffrey Paul Oliverio, or SunTrust, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Jerome Axelrod v. SunTrust Investment Services, Inc. SunTrust Advisory Services, Inc., FINRA Case No.: 20-01957
On July 1, 2021, a FINRA Dispute Resolution Services arbitration panel in Boca Raton, Florida, ordered SunTrust Investment Services, Inc. and SunTrust Advisory Services, Inc. (collectively “SunTrust”) to pay a customer $200,000.
In the Statement of Claim, filed on June 19, 2020, Claimant asserted the following causes of action: violation of the Business Conduct Rule, FINRA Rule 2010 (standards of commercial honor and principles of trade); violation of FINRA Rule 2020 (use of manipulative, deceptive and other fraudulent devices); violation of FINRA Rule 2111 (suitability); violation of FINRA Rule 3260 (discretionary accounts); violation of FINRA Rule 3110 (supervision); breach of fiduciary duty; breach of a broker’s duty of reasonable care; breach of a broker’s duty to supervise and ensure compliance with firm and industry rules; negligence; and fraud and deceit.
The customer complained about the suitability and performance of the professional outside managers and advisors selected to manage his account during the first quarter of 2020.
In the Statement of Answer, among other things, SunTrust requested that the arbitration panel dismiss Claimant’s claims with prejudice. SunTrust had also requested the expungement of this action from Jeffrey Paul Oliverio’s securities industry record.
The arbitration panel found SunTrust jointly and severally liable to Claimant and ordered the firms to pay the sum of $200,000 in compensatory damages. The arbitration panel also denied SunTrust’s request for expungement on behalf of Jeffrey Paul Oliverio, who was not a party to the arbitration.
The causes of action related to losses in Claimant’s discretionary account with the firms.
Discretionary Accounts
Discretionary accounts require that a customer sign a discretionary disclosure to allow an authorized broker to buy and sell securities without the customer’s consent for each trade. The most important aspect of a discretionary account is that the investor allows the broker to manage and make decisions on the investor’s behalf. Discretionary or “managed” accounts may present benefits such as active management or quick trade execution. The ability to make trade decisions without the need to obtain approval for each trade may allow the broker to take advantage of market opportunities in pricing. Discretionary accounts, however, come with higher fees, higher investment minimums and may not be appropriate for investors who either do not feel comfortable with someone else making decisions on their account or who want a more active role managing their own account.
You can read more about discretionary accounts and FINRA Rule 3260 here.
Failure to Supervise
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 its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
Jeffrey Paul Oliverio (CRD#: 4160372)
Mr. Oliverio has 21 years of experience in the securities industry and has been dually registered as a broker and as an investment adviser with Truist Investment Services, Inc. and Truist Advisory Services, Inc. (aka “SunTrust”) in Fort Lauderdale, Florida, since January 2018.
Mr. Oliverio was previously registered with Wells Fargo Clearing Services, LLC in Fort Lauderdale, Florida, between June 2007 and January 2018.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Jeffrey Paul Oliverio, or SunTrust, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at 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.