In a recent development, a serious allegation has been brought to light against Gary Costello, a broker and investment advisor associated with TRUIST INVESTMENT SERVICES, INC. and AEGIS CAPITAL CORP. (CRD 15007). According to the pending customer dispute filed on August 16, 2023, the client alleges that unauthorized trading occurred in his account from December 2022 to August 2023. This grave accusation raises concerns about the integrity of the advisor and the potential impact on investors.
The case, identified with the reference number 6117388, involves equity listed securities, including common and preferred stock. Unauthorized trading is a severe violation of FINRA rules and a breach of trust between the advisor and the client. It occurs when a broker executes trades in a client’s account without obtaining prior consent or going against the client’s expressed wishes. Such actions can result in significant financial losses for investors and undermine the foundation of trust that is crucial in the advisor-client relationship.
For investors, the implications of this allegation are significant. Unauthorized trading can lead to unexpected losses, disruption of investment strategies, and a lack of control over one’s financial portfolio. It is essential for investors to remain vigilant and closely monitor their accounts for any suspicious activities or discrepancies. Regular review of account statements and open communication with advisors are crucial steps in detecting and preventing unauthorized trading.
Understanding the FINRA Rule and Its Implications
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FINRA, the Financial Industry Regulatory Authority, has strict rules in place to protect investors from unauthorized trading. FINRA Rule 2010 states that brokers must observe high standards of commercial honor and just and equitable principles of trade. This rule emphasizes the importance of integrity, fairness, and ethical conduct in the financial industry.
In simple terms, brokers are required to obtain explicit authorization from clients before executing any trades on their behalf. They must also ensure that the trades align with the client’s investment objectives, risk tolerance, and financial situation. Failure to adhere to these guidelines constitutes a violation of FINRA rules and can result in disciplinary action against the broker.
The unauthorized trading allegation against Gary Costello is a serious matter that warrants thorough investigation. If substantiated, it could lead to penalties, fines, and even the suspension or revocation of the broker’s license. Investors who have been affected by unauthorized trading have the right to seek legal recourse and recover their losses through FINRA arbitration.
The Importance of Investor Awareness and Protection
The case of Gary Costello serves as a stark reminder of the importance of investor awareness and protection. Unauthorized trading is just one of the many forms of financial advisor malpractice that can occur in the investment industry. Other red flags include:
- Excessive trading or churning of accounts to generate commissions
- Misrepresentation or omission of material information
- Unsuitable investment recommendations
- Breach of fiduciary duty
Investors who suspect that they have been victims of financial advisor malpractice should take immediate action to protect their rights and recover their losses. Seeking the guidance of experienced investment fraud attorneys can be crucial in navigating the complex legal landscape and pursuing justice.
Haselkorn & Thibaut: Advocating for Investor Rights
Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating the allegations against Gary Costello and TRUIST INVESTMENT SERVICES, INC. With over 50 years of combined experience and a 98% success rate, the firm is dedicated to helping investors recover their losses due to financial advisor malpractice.
Investors who have suffered losses due to the alleged unauthorized trading by Gary Costello are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is obtained. With offices strategically located in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut is well-positioned to serve clients nationwide.
To discuss your legal options and potential recovery, call Haselkorn & Thibaut‘s toll-free number at 1-888-885-7162 or visit their website for more information.
The unauthorized trading allegation against Gary Costello (FINRA CRD #6117388) is a serious matter that demands attention and action. Investors must remain proactive in monitoring their accounts, staying informed about their rights, and seeking professional help when needed. By working with experienced investment fraud attorneys like Haselkorn & Thibaut, investors can fight back against financial advisor malpractice and recover the losses they have suffered.
