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

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

Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface
Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface

Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.

MetLife poll finds high-value home sales are becoming tax-planning events
MetLife poll finds high-value home sales are becoming tax-planning events

A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.

Kestra adds Raymond James recruiter to expand advisor hiring push
Kestra adds Raymond James recruiter to expand advisor hiring push

The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.

Cerity Partners names Will Peng chief innovation officer
Cerity Partners names Will Peng chief innovation officer

The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.