In a recent development, a serious allegation has been brought against Gary Costello, a broker and investment advisor associated with TRUIST INVESTMENT SERVICES, INC. and AEGIS CAPITAL CORP. (CRD 15007). The client has alleged that Gary Costello engaged in unauthorized trading within their accounts in 2023, raising concerns about the advisor’s conduct and the potential impact on investors.
According to the information available on BrokerCheck, the customer dispute (Disclosure ID: 6117388) was filed on August 16, 2023, and is currently pending. The allegation specifically states that the client’s accounts were subjected to unauthorized trading by Gary Costello during the year 2023. This serious accusation calls into question the advisor’s adherence to proper trading practices and the trust placed in them by their clients.
For investors, such allegations can be alarming, as unauthorized trading can lead to significant financial losses and a breach of trust between the advisor and the client. It is crucial for investors to stay informed about any potential misconduct by their financial advisors and to take appropriate action to protect their investments.
Understanding Unauthorized Trading
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Unauthorized trading occurs when a financial advisor makes trades in a client’s account without obtaining prior consent or authorization. According to FINRA Rule 2010, which governs standards of commercial honor and principles of trade, financial advisors are required to obtain explicit permission from clients before executing any trades on their behalf.
In simple terms, unauthorized trading is a violation of the client’s trust and the advisor’s fiduciary duty. By engaging in such practices, advisors may expose their clients to unintended risks, generate excessive trading costs, or make decisions that do not align with the client’s investment objectives and risk tolerance.
The Importance of FINRA Rule 2010
FINRA Rule 2010 is a cornerstone of the financial industry’s regulatory framework. It requires financial advisors to adhere to high standards of commercial honor and just and equitable principles of trade. This rule serves to protect investors by ensuring that advisors act in their clients’ best interests and maintain transparency in their trading activities.
Violations of FINRA Rule 2010, such as unauthorized trading, can result in disciplinary action against the advisor, including fines, suspensions, or even permanent barring from the financial industry. By holding advisors accountable for their actions, FINRA aims to maintain the integrity of the financial markets and protect investors from unethical practices.
The Significance for Investors
Allegations of unauthorized trading, such as the one against Gary Costello, serve as a reminder of the importance of vigilance when it comes to investing. Investors must remain proactive in monitoring their accounts and questioning any suspicious or unexpected trading activity.
Recognizing Red Flags
There are several red flags that investors should be aware of when it comes to potential financial advisor malpractice:
- Unexplained or excessive trading activity in the account
- Trades that do not align with the investor’s stated goals and risk tolerance
- Lack of communication or transparency from the advisor regarding trading decisions
- Significant losses or inconsistencies in account performance
Seeking Legal Recourse
If investors suspect that they have been victims of unauthorized trading or other forms of financial advisor misconduct, they may have legal options to recover their losses. One avenue for seeking recourse is through FINRA arbitration, a process designed to resolve disputes between investors and financial advisors or firms.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Gary Costello and TRUIST INVESTMENT SERVICES, INC. and AEGIS CAPITAL CORP. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses resulting from financial advisor misconduct.
Investors who have suffered losses due to unauthorized trading or other forms of malpractice by Gary Costello or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs. To discuss your case with an experienced investment fraud attorney, call Haselkorn & Thibaut‘s toll-free number at 1-888-885-7162 .
The allegations against Gary Costello serve as a stark reminder of the importance of investor vigilance and the need for accountability in the financial industry. By staying informed, recognizing red flags, and seeking legal assistance when necessary, investors can protect their hard-earned investments and hold unethical advisors accountable for their actions.
