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March 01, 2017 at 08:32 AM
The Financial Industry Regulatory Authority said Wednesday that it barred former K.C. Ward Financial registered representative Craig David Dima. The ex-advisor made about $15 million of “unauthorized and unsuitable trades” in a 73-year-old retiree’s account, the group says, and misrepresented the reasons for the trades to the client.
“There is no place in this industry for brokers who take advantage of elderly customers,” said Susan Schroeder, FINRA acting head of Enforcement, in a statement. “Protecting senior investors from predatory behavior such as unsuitable and unauthorized trading is part of our core mission and will always be a priority for FINRA.”
According to FINRA BrokerCheck records, the former rep had been in the industry for 21 years — during which time he was affiliated or worked for 18 different firms and had 12 regulatory and compliance disclosures, including two employment separations after allegations in 1996 and 2001.
In more than 10 instances and without permission, FINRA says, Dima sold all of the female investor’s Colgate-Palmolive stock, which she had amassed over nearly 30 years of employment with the company.
Further, the former registered rep charged the retiree over $375,000 in mark-ps, markdowns and fees, while depriving her “of substantial dividends had she held the Colgate shares as intended,” the regulator points out.
