(FINRA Case #2015046971701)
Gregory J. Anastos (CRD #5800831, Jersey City, New Jersey) – An Offer of Settlement was issued in which Anastos was suspended from association with any FINRA member in all capacities for four months. In light of Anastos’ financial status, no monetary sanction has been imposed.
Without admitting or denying the allegations, Anastos consented to the sanction and to the entry of findings that he recommended, over an approximate 13-month period, that elderly husband and wife customers engage in short-term trading of a single security, resulting in significant losses for them and generating over $78,158 in commissions, markups and markdowns for himself.
The findings stated that the elderly customers had held the single security for over 36 years. Anastos recommended short-term, in-and-out trading of large positions of a company’s stock (the single security), and made recommendations for purchasing and selling the single security call options and, at times, using margin in the customers’ trust account for the transactions.
Anastos excessively traded the account, recommending a total of 26 transactions (24 of which involved the same single security or options relating to it). This resulted in $69,623 in losses to the elderly customers. Anastos recommended all of the transactions in the trust account and exercised control over the account. Anastos’ trading in the account was excessive, as evidenced by the high turnover rates and high commission-to-equity and cost-to-equity ratios, and was inconsistent with the investment profile of the customers’ trust. The customers’ listed their investment profile as “moderate.” Anastos did not have reasonable grounds or a reasonable basis for believing that the recommended transactions were suitable for the trust in light of the customers’ investment objectives, risk tolerance and financial situation.
The findings also stated that Anastos exercised discretionary power in the account without written authority. The customers, as trustees of the trust, never gave written discretionary authority to Anastos or his firm. The firm, further, never accepted the trust account as a discretionary account. Anastos effected 18 of 26 transactions in the account without speaking to either of the elderly customers prior to the transactions on the dates of the transactions.
The suspension is in effect from June 4, 2018, through October 3, 2018.
Anastos was employed by Windsor Street Capital (CRD# 34171) from 2013 until May 2018 when the firm was expelled from FINRA. The two previous firms that Anastos had been employed at were also expelled by FINRA.
If you are an investor that lost money with Gregory J. Anastos or any broker you should consider all legal options. If you wish to discuss your particular situation and the potential for the recovery of your investment losses, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a FREE EVALUATION of your potential case.