Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/adviser, Stephen Paul Florio (CRD # 1186577) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into the unauthorized use of discretion in customer accounts. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Florio.
Registration Background for Stephen Paul Florio
Mr. Florio first became registered in the securities industry in 1983 and is currently associated with Fort Lauderdale, FL based Cambridge Investment Research, Inc. (CRD # 39543). His prior registrations include Raymond James & Associates, Inc. (CRD # 705) from June 2015 to August 2018 and Morgan Stanley (CRD # 149777) from June 2009 to July 2015.
FINRA’s Allegations against Stephen Paul Florio
FINRA’s investigation led to Mr. Florio entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on August 20, 2020. According to the AWC, Mr. Florio consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From January 5, 2016 through July 10, 2018, [Mr.] Florio exercised discretion without written authorization in a customer’s account”;
- “Due to the customer’s business and travel schedule, the customer orally authorized [Mr.] Florio to exercise discretion in the account”;
- “[Mr.] Florio, however, did not have the customer’s written authorization to exercise discretion, nor was the account approved for discretion by Raymond James”;
- “[Mr.] Florio also incorrectly answered “No” when asked, in two Raymond James annual compliance questionnaires, whether he exercised discretion in any customer’s account”; and
- By virtue of the above, Mr. Florio violated NASD Rule 2510(b) regarding discretionary accounts and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions Stephen Paul Florio
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s August 20, 2020 AWC also indicates that Mr. Florio consented to the following sanction(s):
- A suspension from association with any FINRA member firm in any capacity for a 10 business day period; and
- A fine in the amount of $5,000.00.
Stephen Paul Florio Has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Florio (pages 15 – 18) reveals that he has a history of customer complaint(s)/arbitration(s), including but not limited to the following.
- On October 4, 1993, a customer initiated an arbitration against Mr. Florio for actions that allegedly occurred while he was associated with Barnet Securities, Inc. The customer alleged Mr. Florio engaged in fraud, deceit, misrepresentation and omission of facts. The customer further alleged Mr. Florio’s actions resulted in damages in the amount of $138,579.00. On September 15, 1994, the arbitration was settled in the amount of $10,000.00.
If you or someone you know has or had a brokerage account with Mr. Stephen Paul Florio 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.
