FINRA Orders Stifel to Pay $500K in Customer Dispute

The statement of claim was filed with FINRA in December 2018, according to Michael J. Betts, the attorney who represented Lanzo in the case. However, he said he was "not authorized to comment on the award."

Lanzo had asserted multiple causes of action in her statement of claim, including: Unsuitability, churning, violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, violations of the Pennsylvania Securities Act, breach of fiduciary duty, common law fraud, suitability, negligence, breach of contract, breach of the duty of good faith and fair dealing, failure to supervise, respondeat superior (the doctrine making an employer liable for the actions of an employee if those actions were committed within the scope of employment) and vicarious liability.

The causes of action related specifically to the claimant's allegation that Lisowski, while employed as a financial advisor by Stifel, mishandled her account by failing to recommend and implement a suitable investment strategy or appropriate asset allocation, including over-concentrating her account in General Electric, Range Resources and U.S. Steel Corporation securities.

Lanzo further alleged that Lisowski placed unauthorized option trades, engaged in excessive trading and invested her funds in unsuitable securities, including Barrick Gold, Cliff's Natural Resources, General Cable Corporation, MannKind and ProShares UltraShort 20+ Year Treasure, causing her to incur substantial damages.

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