FINRA

Respondent Guarino failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All Capacities

Indefinite

Continues until required payment is made or discharged.

6/10/2022

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Guarino is suspended on June 10, 2022 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Guarino was named in a customer complaint that asserted the following causes of action: negligence and qualitative and quantitative unsuitability; failure to supervise; breach of fiduciary duty; breach of contract; negligent misrepresentation and omissions; and lost opportunity damages.

$252,546.00

This award has not been paid by or on behalf of Guarino as of June 10, 2022.

EXCESSIVE TRADING, UNAUTHORIZED TRADING, NEGLIGENCE

$74,924.84

$27,500.00

SUITABILITY, CHURNING, NEGLIGENCE

$200,000.00

$210,995.00

EXCESSIVE TRADING, SUITABILITY

$407,308.23

$150,000.00

THE LATE REPORTING IS ATTRIBUTABLE TO A FAILURE OF COMMUNICATION WITH COUNSEL REPRESENTING RESPONDENTS IN THE ARBITRATION. BEFORE REPORTING WAS REQUIRED, IT WAS THE FIRM'S UNDERSTANDING THAT THE INDIVIDUAL RESPONDENTS WERE BEING DROPPED FROM THE CASE WITHOUT PREJUDICE. THE FIRM UNDERSTOOD THAT THE ARRANGEMENT HAD BEEN REDUCED TO WRITING BY ITS FORMER COUNSEL WITH THE OTHER SIDE. ONLY IN THE PAST FEW DAYS DID THE FIRM LEARN THAT THE AGREEMENT HAD NOT BEN REDUCED TO WRITING AND THAT, IN FACT, THE INDIVIDUAL RESPONDENTS HAD NOT BEEN DROPPED FROM THE CASE.

FAILURE TO PERFORM DUE DILIGENCE, BREACH OF FIDUCIARY RESPONSIBILITY

$50,000.00

FAILURE TO PERFORM DUE DILIGENCE, BREACH OF FIDUCIARY RESPONSIBILITY

$300,000.00

$150,000.00

FINRA

NASD RULES 2110, 3010: GUARINO FAILED TO ADEQUATELY REVIEW CMO PURCHASES BY BROKERS UNDER HIS SUPERVISION AT TWO BRANCH OFFICES OF HIS MEMBER FIRM, OR OTHERWISE FAILED TO HAVE TAKEN REASONABLE STEPS TO ENSURE THAT THE BROKERS WERE ABIDING BY THE TERMS IDENTIFIED IN THE DISCLOSURE DOCUMENT SENT TO CUSTOMERS, WHICH STATED THAT TRANSACTION COSTS FOR THE PURCHASE OF CMO PRODUCTS WOULD NOT EXCEED 3.25%. GUARINO FAILED TO DETECT THAT IN 187 CMO TRANSACTIONS CUSTOMERS WERE BEING CHARGED MORE THAN THE 3.25%, THEREBY RESULTING IN $41,873.47 IN EXCESSIVE TRANSACTION COSTS CHARGED TO THE CUSTOMERS. GUARINO RECEIVED TWO SETS OF BLOTTERS, ONE ENCOMPASSING ALL TRADES, AND ONE JUST COVERING CMO TRANSACTIONS, AND HE REVIEWED BOTH. FURTHER, GUARINO APPROVED THE INCLUSION OF THE 3.25% MAXIMUM CHARGE IN THE DISCLOSURE DOCUMENT AND REVIEWED ALL OF THE CMO TRANSACTIONS ENTERED BY THE BROKERS AT THE TWO BRANCH OFFICES TO ASSURE COMPLIANCE WITH THE FIRM'S GUIDELINES.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Restitution

$41,873.47

Suspension

SUPERVISORY CAPACITY

30 DAYS

12/6/2010

1/4/2011

WITHOUT ADMITTING OR DENYING THE FINDINGS, GUARINO CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $5,000, ORDERED TO PAY $41,873.47, PLUS INTEREST, IN RESTITUTION TO CUSTOMERS, AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY SUPERVISORY CAPACITY FOR 30 DAYS. THE FINE IS DUE AND PAYABLE EITHER IMMEDIATELY UPON RE-ASSOCIATION WITH A MEMBER FIRM FOLLOWING HIS SUSPENSION OR PRIOR TO ANY REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE RESTITUTION AMOUNTS ORDERED, PURSUANT TO THIS DISCIPLINARY ACTION, IS TO BE PAY TO THE CUSTOMERS NO LATER THAN 120 DAYS AFTER ACCEPTANCE OF THE AWC. SATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTED EFFORTS TO EFFECT RESTITUTION SHALL BE PROVIDED TO FINRA NO LATER THAN 120 DAYS AFTER THE ACCEPTANCE OF THE AWC. IF FOR ANY REASON RESPONDENT CANNOT LOCATE THE CUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN SUCH PERIOD, RESPONDENT SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY, OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER LAST RESIDED, AND RESPONDENT SHALL PROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA WITHIN 14 DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE STATE AUTHORITY. THE SUSPENSION IS IN EFFECT FROM DECEMBER 6, 2010, THROUGH JANUARY 4, 2010.

WITHOUT ADMITTING OR DENYING THE FINDINGS, GUARINO CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $5,000, ORDERED TO PAY $41,873.47, PLUS INTEREST, IN RESTITUTION TO CUSTOMERS, AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY SUPERVISORY CAPACITY FOR 30 DAYS. THE FINE IS DUE AND PAYABLE EITHER IMMEDIATELY UPON RE-ASSOCIATION WITH A MEMBER FIRM FOLLOWING HIS SUSPENSION OR PRIOR TO ANY REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE RESTITUTION AMOUNTS ORDERED, PURSUANT TO THIS DISCIPLINARY ACTION, IS TO BE PAY TO THE CUSTOMERS NO LATER THAN 120 DAYS AFTER ACCEPTANCE OF THE AWC. SATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTED EFFORTS TO EFFECT RESTITUTION SHALL BE PROVIDED TO FINRA NO LATER THAN 120 DAYS AFTER THE ACCEPTANCE OF THE AWC. IF FOR ANY REASON RESPONDENT CANNOT LOCATE THE CUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN SUCH PERIOD, RESPONDENT SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY, OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER LAST RESIDED, AND RESPONDENT SHALL PROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA WITHIN 14 DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE STATE AUTHORITY. THE SUSPENSION IS IN EFFECT FROM DECEMBER 6, 2010, THROUGH JANUARY 4, 2010.

CHURNING, FAILURE TO SUPERVISE

$370,000.00

$157,500.00

CUSTOMER ALLEGED INVESTMENT RECOMMENDATIONS WERE UNSUITABLE.

$20,000.00

$20,000.00

FIRM SETTLED AND I PARTICIPATED.

MISREPRESENTATION AND BREACH OF FIDUCIARY DUTY DAMAGES OF $728,947 CLAIMED.

$728,947.00

$20,000.00

SETTLED FOR $20000 WITH PREJUDICE