SEC bars broker for churning clients' accounts through firm

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
By  Bloomberg

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.

Latest News

Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034
Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034

New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.

NY Republican Stefanik presses SEC to probe Harvard bond sale
NY Republican Stefanik presses SEC to probe Harvard bond sale

Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.

Ex-LPL leader re-emerges at The Wealth Consulting Group
Ex-LPL leader re-emerges at The Wealth Consulting Group

The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.

Envestnet extends investment offerings with new alts model portfolios
Envestnet extends investment offerings with new alts model portfolios

The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave