The Financial Industry Regulatory Authority (FINRA) recently announced Jonathan William Iraggi (Iraggi) entered into a Letter of Acceptance, Waiver and Consent without admitting or denying the allegations against him. The settlement concerns allegations Iraggi exercised discretion in three of his customers’ accounts without written authorization, thereby causing his firm’s books and records inaccurate. As a result, Iraggi was suspended from the financial industry for thirty (30) business days and fined $5,000.
Iraggi (FINRA CRD No. 5857254) is an associated person registered with FINRA since 2011. From 2011 to 2015, Iraggi worked for American Capital Partners, LLC; Portfolio Advisors Alliance, Inc.; and Spartan Capital Securities, LLC. From January 2016 to August 2017, and during the relevant time period, Iraggi worked for Garden State Securities, Inc. (“Garden State”) until he was terminated voluntarily. Iraggi currently works for National Securities Corporation.
FINRA’s Department of Enforcement investigated Iraggi’s alleged misconduct and found he exercised discretion in three customer accounts without written authorization, although he had express or implied authority for discretion. Additionally, FINRA alleged Garden State did not approve the accounts for trading on a discretionary basis.
Based upon the foregoing misconduct, FINRA alleged Iraggi violated NASD Rule 2510(b), as well as FINRA Rule 2010. For example, 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 for investment damage, as well as disciplined by securities regulators such as the case here.
Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.