SERVING CLIENTS NATIONWIDE

Douglas Gregory Bezio Fined and Suspended for Unsuitable, Unauthorized and Excessive Trading

FINRA suspended broker Douglas Gregory Bezio and fined him $10,000 after discovering Bezio lacked reasonable grounds with which to recommend the acquisition of mutual funds for a customer and that Bezio had effected two unauthorized trades in the accounts of additional customers.

FINRA Case #20110279926

According to the investigation, while employed at LPL Financial Corporation from 2004 through 2008, Bezio recommended and executed 46 transactions of mutual funds for a customer's joint account. FINRA found that Bezio had failed to inform his customers of sales charges and fees associated with purchasing the mutual funds and believes that Bezio's recommendations were improper and in violation of NASD Conduct Rules.

Specifically, FINRA'S Department of Enforcement found that the purchase of Class A mutual fund shares would have been advantageous had Bezio's customers held the funds long-term. Instead, FINRA discovered that the customers held the majority of these funds for less than 18 months.

In regards to the charge of unauthorized trading, FINRA found that on February 17, 2009, Bezio had effected two bond funds purchases totaling $44,000 for a separate customer without first obtaining that customer's approval or consent.

Enforcement also charged Bezio with failure to timely cooperate with the department's investigation as Bezio failed to appear for a June 2012 interview despite receiving a letter requesting his presence. FINRA's report states that Bezio failed to appear for a second, rescheduled interview in July, though Bezio has since agreed to testify.

If you have invested with Douglas Gregory Bezio, LPL Financial, or with any broker or firm who has failed to inform you of fees or other financial liabilities or who has engaged in what you believe is unsuitable, unauthorized or excessive trading activity that has 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