(FINRA Case #2013037843201)
David John Lomedico (CRD #1531676, Huntington, New York) – An AWC (Accept, Wavier & Consent) was issued in which Lomedico was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for four months.
Without admitting or denying the findings, Lomedico consented to the sanctions and to the entry of findings that he recommended unsuitable transactions in two customers’ accounts.
The findings stated that Lomedico was the registered representative for a husband and wife—who were 72 and 64, respectively, at the time of opening their joint trust account—while they were customers at his member firm. During that time, the investment objective for their account was speculation. Lomedico communicated with the husband about the couple’s account and made recommendations—solely to the husband—that he buy and sell securities in that account.
Prior to the husband’s death, the wife had relied entirely on her husband to manage the couple’s finances and investments, including their account with Lomedico’s firm. The wife had little investment knowledge or experience.
Following the husband’s death, the wife’s investment objective was long-term capital appreciation. Lomedico did not take any steps upon the husband’s death to assess the wife’s changed circumstances. Lomedico did not speak with her to determine her investment objective and investment experience, instead relying on the account’s prior investment objective of speculation for his recommendations.
As a result, Lomedico continued to recommend short-term trading and use of margin that was inconsistent with the wife’s investment objective and risk tolerance, and thus was unsuitable.
The findings also stated that another customer opened an account with Lomedico, seeking a steady return with limited risk. This customer had minimal investment experience and did not have any prior experience trading in non-traditional ETFs. Nevertheless, Lomedico recommended the purchase of non-traditional ETFs as long-term investments, which were inconsistent with the customer’s investment objective and risk tolerance, and were unsuitable.
The suspension is in effect from August 7, 2017, through December 6, 2017.
If you feel you have been misled by David John Lomedico or a Brokerage Firm and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.