Another Ex-Worden Capital Management Broker Accused of Excessive Trading

Ex-Worden Capital Management Broker’s Customer is Seeking Over $200K in Damages

Joseph Paul Todaro, currently an SW Financial registered representative, is named in a customer dispute in which the claimant is reporting investment losses from excessive trading, failure to follow instructions, and poor services. The investor is seeking over $200K.

This is not the first customer of the Melville, New York-based broker to accuse Todaro of excessive trading. As a matter of fact, three other claims brought by his customers make similar allegations. Also, from 2018 to 2020, Todaro was a registered representative with Worden Capital Management, which last year was subject of a Financial Industry Regulatory Authority (FINRA) action related to the churning activities of its brokers.

Our New York excessive trading attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are offering free case assessments to anyone who suffered significant losses while working with Joseph Todaro. Call (800) 259-9010 today.

Disclosures Involving The Ex-Worden Capital Management Broker

Below is a list of several other customer disputes that broker Joseph Torado has been named in previous years. These disputes allege that the broker acted negligently and partook in securities fraud actions such as churning, unsuitability, and breach of fiduciary duties.

May 2018: This investor alleged churning, as well as unsuitable and unauthorized trades from 2015 to 2017. The churning case was settled for $14K.
November 2017: Alleging breach of fiduciary duty, churning, and excessive commissions, this FINRA arbitration case was resolved with a $60K settlement.
September 2017: This investor claim accusing Todaro of churning and earning excessive commissions was settled for $14,800.

Other brokerage firms where Todaro used to be a registered representative include Spartan Capital Securities, Laidlaw & Co., Craig Scott Capital, Rockwell Global Capital, and EKN Financial Services. Todaro has worked for nine years in the industry.

What is Churning and Excessive Trading?

Churning is when a broker excessively trades in a customer’s account for the purposes of earning more commissions and fees. This not only costs an investor money, but also: is illegal, a breach of the financial advisor’s fiduciary duty to the customer, and an unsuitable trading activity.

Two Signs of Possible Churning in Your Account:

Your broker is making a lot of trades in your account. Unless you are a sophisticated investor who can tolerate much risk, there could be excessive trading going on.
Your financial advisor doesn’t have an explanation for all of the trades they are making in your account.

Worden Capital Management Pays $1.5M Over Brokers’ Churning Activities

Joseph Todaro is not the only former Worden Capital Management broker to be accused of churning. Last December, FINRA ordered the brokerage firm to pay $1.5M, including $1.2M in restitution, over excessive trades made by its financial advisor. The self-regulatory organization (SRO) accused Worden of failing to properly supervise its registered representatives, with some of them conducting hundreds of unsuitable trades in individual customers’ accounts.

Three other ex-Worden Capital Management brokers to face disciplinary action for excessive trading:

Gregory Thomas Dean, who was barred from the industry and is named in over a dozen customer disputes.
Donald Joseph Fowler, who is under investigation by the Securities and Exchange Commission (SEC) and FINRA and also has been named in over a dozen investor claims.
Salvatore Pizzimenti was barred in June 2021. He is named in five customer disputes.

Skilled Churning and Excessive Trading Law Firm

Our team of experienced FINRA attorneys has represented thousands of investors across the US and abroad in their customer disputes against financial advisors and brokerage firms that acted negligently. If you believe that you suffered losses as a result of churning or excessive trading, you can reach our New York securities attorneys at (716) 261-3529. Throughout the US, call SSEK Law Firm at (800) 259-9010 today.