The Financial Industry Regulatory Authority has suspended a broker for 15 months for recommending unsuitable trades in four accounts held by three customers, one of whom was over 70, in violation of the best-interest obligation under Regulation Best Interest.
From June 2017 through June 2021, Joseph Desapio recommended "quantitatively unsuitable trades" in four accounts, the order states.
From May 2017 to July 2022, Desapio was registered as a general securities representative (GS) through Spartan Capital Securities LLC.
"His customers relied on his advice and routinely followed his recommendations and, as a result, Desapio exercised de facto control over the three customers' accounts," FINRA's order states. "Desapio's trading resulted in high turnover rates and cost-to-equity ratios that were well above the traditional guideposts of six and 20 percent, respectively."
Desapio's clients included a 58-year-old paralegal, a 57 year-old widowed yoga instructor and a 71-year-old insurance agent.
