The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Jonathan Iraggi. According to his publicly available FINRA BrokerCheck report, Jonathan Iraggi has been the subject of a FINRA sanction.
Jonathan Iraggi was a New Jersey based securities broker. He worked in the securities industry for seven years. During his career, he was registered with five different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Spartan Capital Securities (2011, 2012-2015)
- Portfolio Advisors Alliance (2011-2012)
- American Capital Partners (2012)
- Garden State Securities (2016-2017)
- National Securities Corporation (2017-2018)
The Allegations
Jonathan Iraggi was officially sanctioned by FINRA in August 2018. The findings in this matter state that he allegedly exercised discretion in three customer accounts without first obtaining written authorization from the customers or his member firm. Due to these allegations, he was fined $5,000 and suspended from acting as a securities broker in any fashion for a period of thirty days.
What is Discretion?
Securities brokers are not allowed to execute trades on their customers’ behalf without first obtaining their authorization to do so. Just because an investor has hired a broker to recommend suitable investments, does not mean they have forfeited the right to ultimately have the final say on what they are invested in. There is a trading practice known as discretion in which brokers can execute trades in an investor’s account without obtaining authorization for every trade. However, before a broker can begin engaging in this practice, they must first obtain the account holder’s express written authorization to do so. The broker’s member firm must also deem the account in question as suitable for discretionary trading. This is because discretion is a very slippery slope and can easily lead to brokers placing customers in investments they are not financially suited for, or trading their accounts in an excessive manner to increase their own commissions–both of which can be financially detrimental to investors.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Jonathan Iraggi, please contact Oakes & Fosher for a free and private consultation.
