Family Trust to Receive Compensatory Damages From Broker-Dealer
In its Financial Industry Regulatory Authority (FINRA) arbitration claim against Raymond James & Associates and former broker Paul Anthony Steffany, the Angelina J. Cuccaro Family Trusted was awarded $320K in compensatory damages.
The claimant contends that it was the victim of broker negligence and the firm’s failure to supervise. The former Connecticut broker was barred by the self-regulatory organization (SRO) in 2015.
After he was fired by Raymond James in 2014, Steffany became a Moors & Cabot stockbroker for one year. During his 32 years in the industry, the ex-broker has been the subject of several customer disputes and regulatory complaints.
Shepherd Smith Edwards and Kantas (SSEK Law Firm) is speaking with former customers of Paul Steffany who have suffered significant investment losses. Contact our investment fraud lawyers today.
Other Trusts Have Accused Steffany of Stockbroker Fraud
The ex-Raymond James broker has been named in other customer disputes, mostly involving trust claimants. According to Paul Steffany’s BrokerCheck report, one pending case from January 31, 2020, accuses him of withdrawing funds from a claimant’s trust for his own use on or prior to 2007. Another broker fraud claim, from 2019 and also on behalf of a trust, accused Raymond James of negligent supervision. That case was closed due to a lack of action.
An earlier customer dispute alleging unauthorized withdrawals from a trust between 2004 and 2007 was settled for $37,500. A complaint from 2017, claiming negligent supervision and unsuitability from 1997 to 2017, was settled for $125K.
Paul Steffany has been in trouble with other regulators. In 2016, the Connecticut Department of Banking permanently barred him for his alleged withdrawal of funds from a trust customer’s account at Raymond James. He also was accused of forging the trust co-executor’s signature on at least a dozen checks. That was the same year the Arizona Corporation Commission Securities Division also permanently barred him.
Before working for Raymond James in 2007, Paul Steffany was an AG Edwards & Sons broker for 24 years.
Trustee Misconduct by Brokers
Mismanaging or defrauding a trust is not just a breach of fiduciary, it is grounds for a FINRA arbitration claim for damages.
Unfortunately, trust and estate abuse by financial professionals does happen. Contact our broker misconduct attorneys at SSEK Law Firm today if you lost money while working with ex-Raymond James broker, Paul Steffany, or another registered representative.