Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Patrick Perugino (CRD # 6363411) 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. Perugino.
Registration Background for Patrick Perugino
Mr. Perugino first became registered in the securities industry in 2015. FINRA BrokerCheck shows that he is currently registered with Garden City, NY based Craft Capital Management LLC (CRD # 171350). His prior registrations and/or employments include Spartan Capital Securities, LLC (CRD # 146251) from January 2018 to October 2020, Allied Millennial Partners, LLC (CRD # 16569) from November 2017 to January 2018, and David Lerner Associates, Inc. (CRD # 5397) from July 2016 to November 2017.
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 5, 2022 (No. 2020067464701), Mr. Perugino consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between December 2016 and August 2021, [Mr.] Perugino exercised discretion to effect 183 trades in four customers’ accounts”;
- “For one customer, [Mr.] Perugino exercised discretion in placing one trade in the customer’s account in January 2017 while [Mr.] Perugino was associated with DLA”;
- “With respect to the other three customers, Perugino engaged in discretionary trading by placing numerous trades in their accounts while these accounts were at DLA, Spartan and Craft”;
- “None of the four customers provided prior written authorization for Perugino to exercise discretion in their accounts at any of these firms”;
- “The written supervisory procedures (WSPs) for DLA and Spartan prohibited registered representatives from exercising discretion in a customer’s account”;
- “Although Craft’s WSPs permitted discretionary accounts, Perugino did not follow the firm’s procedures to obtain written authorization from the customers or seek approval from Craft to maintain any discretionary accounts at Craft”; and
- By virtue of his actions, Mr. Perugino violated NASD Rule 2510(b) regarding discretionary accounts, FINRA Rule 3260(b) regarding discretionary trading, and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Patrick Perugino from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s December 5, 2022 AWC also indicates that Mr. Perugino consented to the following sanction(s):
- A one-month suspension from association with any FINRA member in all capacities; and
- fine in the amount of $5,000.00.
Patrick Perugino Has A Prior History of Securities Industry Customer Complaints
In addition to Patrick Perugino being suspended by FINRA from the securities industry after an investigation into using unauthorized discretion in customer accounts, FINRA BrokerCheck for Mr. Perugino reveals that he has a prior history of customer complaints and/or customer-initiated arbitrations, including but not limited to the following:
- On November 16, 2020, a customer-initiated arbitration was filed naming Mr. Perugino as a respondent, regarding alleged actions that occurred while he was associated with David Lerner Associates, Inc. The customer’s allegations included failure to supervise, breach of fiduciary duty and unauthorized trading. The customer further alleged damages in the amount of $16,868.25. On July 16, 2021, the arbitration panel rendered an award for the customer and ordered Mr. Perugino to pay $6,427.27.
- On April 1, 2020, a customer initiated a written complaint against Mr. Perugino, regarding alleged actions that occurred while he was associated with Spartan Capital Securities, LLC. The customer emailed the Securities and Exchange Commission (SEC) claiming illegal or fraudulent activity in the account(s). The customer further alleged that $50,000.00 was missing and that they could not contact Mr. Perugino. On April 17, 2021, the complaint was closed with no action taken.
If you or someone you know has or had a brokerage account with Patrick Perugino 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.