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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.