National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation into former Worden Capital Management, LLC and current SW Financial registered representative Joseph Paul Todaro (Joseph Todaro Worden Capital Investigation) in light of a customer dispute filed against the Melville, NY broker alleging excessive trading.
Joseph Todaro Worden Capital Investigation – BrokerCheck of Joseph Todaro
According to FINRA BrokerCheck, Joseph Paul Todaro was registered as a broker with Worden Capital Management LLC from March 2018 to August 2020. He is currently a registered representative with SW Financial out of its Melville, NY branch.
Joseph Todaro’s FINRA BrokerCheck contains four disclosures. All four disclosure relate to excessive trading in customer accounts. For instance, Paul Todaro’s FINRA BrokerCheck displays an April 2021 customer dispute alleging $206,000 in damages relating to “poor Performance; failure to follow instructions; poor service; and, excessive trading from June 2020 to July 2020.”
Ex-Worden Capital Broker Joseph Todaro and Excessive Trading
According to the Financial Industry Regulatory Authority (FINRA), brokerage firms and its financialadvisors that excessively traded or “churn” a brokerage account are in violation securities industry rules and regulations.
In a FINRA arbitration claim of excessive trading or “churning” in a brokerage account, Claimants may allege a breach of fiduciary duty and conflict of interest for recommended investment strategies whose sole purpose is to enrich the brokerage firm and/or its financial advisor through excessive commissions, fees or costs.
FINRA arbitrations will generally be successful in an excessive trading or “churning” claim if a customer can prove two case facts. First, the panel must conclude the financial advisor controlled or solicited the activity in the account and second, the activity in the account was excessive based on the Claimant’s risk tolerance and investment objectives.
There are many factors an arbitration panel will consider to determine whether a financial advisor had control over the activity in a financial brokerage account. Several factors that may be considered include:
- Client Level of Sophistication;
- Unsuitable Investment Strategy Based on Objectives;
- Prior Transactions of a Similar Nature and Frequency;
- Client Trust and Reliance Upon a Financial Advisor;
- Time Client Devotes to Independent Research;
- Number of Transactions Solicited vs. Unsolicited;
- Similar Positions with Different Brokerage Firms; and
- Client Understanding of Investment Strategy.
Investment Losses with Joseph Todaro at Worden Capital?
Former and current customers of Ex-Worden Capital and current SW Financial registered representative Joseph Todaro with investment losses that exceed $100,000, and those who may have information relating to the manner in which the broker handled their accounts, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.
KT is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $220 million for investors in FINRA arbitrations. KT has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq. (561) 542-5131