Borsellino was also fined $5,000 and ordered to return lost funds to former customers.
The Sonn Law Group is investigating allegations that John Borsellino committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
John Borsellino (CRD#: 2006663) consented to FINRA sanctions and to the entry of findings that he recommended and then made unsuitable securities transactions in customers’ accounts. The findings stated that Borsellino recommended that customers purchase municipal bonds and non-municipal securities in their brokerage accounts, which caused the customers to incur upfront sales charges.
In each instance, Borsellino transferred the security to the customer’s existing fee-based account shortly after purchasing it (generally within 90 days), and, in each instance, Borsellino could have purchased the security in the fee-based account without any upfront sales charges.
The upfront sales charges associated with the unsuitable purchases made in the customers’ brokerage accounts totaled approximately $58,000, all of which Borsellino’s member firm has reimbursed to his customers. Borsellino earned $23,931 in connection with the unsuitable recommendations.
Borsellino lacked a reasonable basis to believe that the recommended securities purchases made in the customers’ brokerage accounts were suitable because he failed to exercise reasonable diligence and failed to consider the costs associated with the transactions.
Borsellino was terminated from Morgan Stanley in December 2017 following concerns about asset movements between, and the timing of trades in, accounts for the same clients with different fee characteristics and whether the Borsellino spoke with the clients before taking these actions.
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The Sonn Law Group is currently investigating allegations that brokers recommended unsuitable investments. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.