Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Matthew G. Zanowiak (CRD # 1142281) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into using unauthorized discretion in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Zanowiak.
Registration Background for Matthew Zanowiak
Mr. Zanowiak first became registered in the securities industry in 1983. He is currently registered with Lancaster, PA based Cadaret, Grant & Co., Inc. (CRD # 10641). His prior registrations include Park Avenue Securities LLC (CRD # 46173) from May 1999 to February 2002, Guardian Investor Services Corporation (CRD # 6635) from April 1994 to May 1999 and John Hancock Distributors, Inc. (CRD # 468) from June 1983 to March 1994.
FINRA’s Allegations Against Matthew Zanowiak
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated June 7, 2021 Mr. Zanowiak consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “In April 2019, [Mr.] Zanowiak exercised discretion without written authorization in 15 customer accounts, in violation of NASD Rule 2510(b) and FINRA Rule 2010”;
- “Although the customers knew that [Mr.] Zanowiak was exercising discretion in their accounts, [Mr.] Zanowiak did not have prior written authorization to do so from any of the customers”;
- “Cadaret Grant had not approved any of these accounts for discretionary trading”; and
- By virtue of his actions, Mr. Zanowiak violated NASD Rule 2510(b), regarding discretionary accounts and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Suspends Matthew Zanowiak from Securities Industry
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s June 7, 2021 AWC also indicates that Mr. Zanowiak consented to the following sanction(s):
- A 10-business suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00.
Matthew Zanowiak Has A History of Securities Industry Customer Complaints
In addition to Matthew Zanowiak being suspended by FINRA from the securities industry regarding unauthorized discretion, FINRA BrokerCheck for Mr. Zanowiak reveals that he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On March 2, 2010, a customer initiated a written complaint against Mr. Zanowiak, regarding alleged actions that occurred while he was associated with Cadaret, Grant and Co., Inc. The customer alleged that Mr. Zanowiak incorrectly devised that a market value adjustment would not be assessed on an asset transfer of a variable annuity. The customer further alleged he/she sustained damages in the amount of $14,891.80. On April 28, 2010, the complaint was settled in the amount of $14,891.80 with Mr. Zanowiak required to contribute $5,000.00 to the settlement amount.
- On March 26, 2009, a customer initiated a written complaint against Mr. Zanowiak, regarding alleged actions that occurred while he was associated with Cadaret, Grant and Co., Inc. The customer alleged misrepresentation and suitability with regards to a variable annuity. The customer further alleged damages in the amount of $13,500.00. On March 22, 2010, the complaint was denied and closed without further action.
If you or someone you know has or had a brokerage account with Matthew G. Zanowiak and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.