SEC bars broker for churning clients' accounts through firm

Agency says Jovannie Aquino recommended series of frequent, short-term trades while charging commissions and fees for each trade

Jun 13, 2019 @ 12:28 pm

By InvestmentNews

The Securities and Exchange Commission has barred former broker Jovannie Aquino, charging him with churning clients' accounts through his firm at the time, New York-based Windsor Street Capital.

Mr. Aquino is no longer employed in the securities industry and his former employer, Windsor Street Capital, has been expelled by the Financial Industry Regulatory Authority Inc.

(More: Finra bars former Aegis broker for churningFinra bars former Aegis broker for churning)

According to an SEC administrative proceeding, Mr. Aquino allegedly persuaded at least seven customers to maintain securities trading accounts with him at the firm and assured them that he would employ a profitable trading strategy for them. He recommended a series of frequent, short-term trades while charging commissions and fees for each trade.

"The frequency of his trading, coupled with the commissions and fees on every trade, made it almost certain that his customers would lose money from the recommended level of trading," the SEC said. "Indeed, the customers' investments would need to achieve annual returns of approximately 21% to 406% just to pay for the transaction costs associated with [Mr.]Aquino's trading strategy."

(More:Finra suspends ex-Morgan Stanley broker who made hundreds of CD trades for elderly client)

Mr. Aquino's "fraudulent acts and omissions" resulted in approximately $881,000 in losses for customers and $935,000 in commissions for Mr. Aquino, who worked at 12 different brokerage firms during this career, which began in 2004.


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