California Securities Fraud Attorney Call Today 800-699-1881
California Securities Fraud Lawyer Firm Overview Attorney Profiles Recoveries Obtained Frequently Asked Questions Testimonials Contact Us
information center
Attorney Advertising Disclaimer
Broker Misrepresentation
Brokerage Firms Sued
Structured Products
Hedge Fund Losses
Recognizing Investment Losses
Recovery of Investment Loss
Securities Arbitration
Reverse Convertible
Securities Fraud
Securities Mediation
Securities Litigation
Stock/ Investment Losses
Suitability/ Unsuitability
Unauthorized Trading
Common Claims
Frequently Asked Questions
Attorney Referrals
Video Center
securities fraud blog
legal blog Click here for a free case evaluation. Read our Articles on Securities Related Issues here. have a question resources
contact us
Are you a new client?
10 Avvo avvo badge
If you need help recovering your losses contact us today. View our complete list of brokerage firms and banks we've sued.

FINRA Fines & Suspends Broker Michael Laurence Digaetano for Failure to Supervise

The Financial Industry Regulatory Authority (FINRA) suspended broker-dealer Michael Laurence Digaetano of West Lake Village, California, and fined him $5,000 for allegedly failing to reasonably supervise a subordinate, which according to FINRA, contributed to the subordinate broker's ability to willfully violate industry rules.

FINRA Case #2009019209202

During its investigation, FINRA found that between 2007 and 2008, while associated with the firm J.P. Turner & Company, LLC, one of Digaetano's subordinate employees willfully violated several SEC, NASD and FINRA regulations, making unsuitable recommendations that caused multiple customers to suffer losses totaling approximately $600,000, while the offending broker received gross commissions of approximately $240,000.

FINRA charged that, as the subordinate's immediate supervisor, Digaetano failed to reasonably supervise his employee by taking steps to detect and prevent these violations. According to the Authority, had Digaetano reasonably supervised his employee, he would have discovered at least four red flags that indicated the misconduct.

These indicators included a pattern of mutual fund switching, identifying all trades as "unsolicited," recommending only Class A mutual fund shares—which effectively maximized commission—and several other irregularities that routinely required Digaetano's approval.

Digaetano did not contest the allegations, but accepted the findings, suspension, and fine.

Digaetano's suspension expires on September 18, 2012.

If you invested with Michael Laurence Digaetano or his firm J.P. Turner & Company, LLC, and believe that failure to supervise and/or unsuitable recommendations have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

Categories: Failure to Supervise
The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.