FINRA’s Department of Enforcement investigated Vaccarelli’s alleged misconduct and found he exercised discretion on behalf of four of his customers. Specifically, between 2011 and 2015, Vaccarelli effected discretionary transactions in his customers’ accounts. FINRA alleged Vaccarelli exercised discretion in his customers’ accounts without written authorization, without designating the accounts as discretionary accounts, and without disclosing the nature of the relationship to Investment Center. Further, on four annual Investment Center compliance questionnaires between 2011 and 2014, Vaccarelli falsely certified that he did not handle any retail customer accounts on a discretionary basis.
Based upon the foregoing misconduct, FINRA alleged Vaccarelli violated NASD Rules 2510(b) and 2010. NASD Rule 2510 prohibits a registered representative from exercising any discretionary authority in a customer’s account unless such customer has provided prior written authorization and the account has been accepted by a FINRA member. In cases where a financial advisor executes unauthorized trades without proper authorization, the financial advisor and brokerage firm may be found liable, as well as disciplined by securities regulators such as the case here.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Vaccarelli through Investment Center, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.