South Florida Broker Barred By FINRA, Allegedly Stuck Customers With his Personal Trading Losses
Gary Steven Costello (CRD#: 6117388) is a previously registered broker. From August of 2016 to May of 2019, he was a representative of Morgan Stanley in Boca Raton, Florida. Subsequently, Mr. Costello served as a registered representative of Oppenheimer & Co., Truist Investment Services, and Aegis Capital Corp.
Earlier this year, Mr. Costello was permanently barred by the Financial Industry Regulatory Authority (FINRA) for his failure to cooperate with an investigation into allegations he stuck customers with his personal trading losses. Here, our Miami investment fraud attorney provides a more comprehensive overview of the allegations against the Florida financial advisor.
Nine Separate Investor Complaints Were Filed Against Gary Steven Costello
Gary Steven Costello, a former broker and registered investment adviser (RIA) from South Florida was the subject of several different serious complaints from investors. Notably, these cases involved serious allegations of misconduct. To start, there are allegations of unauthorized trading. Several clients alleged that Mr. Costello executed trades without their consent. Beyond that, there are allegations of churning (excessive trading), broker negligence, and breach of fiduciary duty. Here is a more detailed overview of the settlements for the investor complaints:
- $808,930.69 settlement
- $234,451.00 settlement
- $99,086.44 settlement
- $1,023,816.60 settlement
- $3,320.24 settlement
- $128,131.27 settlement
- $1,200,000.00 settlement
- $105,000.00 settlement
- $146,147.28 settlement
FINRA Sanctions: Broker Barred for Not Cooperating With Investigation
FINRA launched its own investigation into the allegations raised against former Florida broker Gary Steven Costello. However, Mr Costello failed to properly cooperate with the investigation in violation of securities industry rules. FINRA emphasizes that this broker failed to submit to a request for on-the-record testimony into the investigation into unauthorized trading, churning, broker negligent, and breach of fiduciary duty. Without admitting or denying any of the specific allegations raised by FINRA, Gary Steven Costello consented to the proposed penalties, including a permanent bar from the securities industry.
Brokers-Dealers Can Be Held Accountable for Conduct of Registered Representatives
For investors, it is stressful and frustrating when a financial advisor violates your trust. It is important to know that broker-dealers can be held accountable for the misconduct of their registered representatives. In other words, an affected investor can take legal or arbitration action against the firm itself. A firm is liable for the actions of its registered reps acting within the scope of their employment. Even if the broker was acting dishonestly or against internal policies, the firm may still be liable if the misconduct occurred while the broker was carrying out duties for the firm. Under FINRA Rule 3110, brokerage firms are responsible for supervising their representatives.
Consult With Our Miami, FL Investor Losses Attorney Today
At Carlson & Associates, P.A., our Miami securities fraud attorney fights tirelessly to put investor rights first. Bad acting brokers must be held accountable. If you were the victim of a fraud by a financial advisor, we are here to help. Contact us today for a fully confidential, no obligation initial consultation. Our firm represents investors in Florida and beyond.
Source:
brokercheck.finra.org/individual/summary/6117388
