Client's heirs allege failure to supervise and unsuitable recommendations by former Rep to liquidate and transfer assets prior to Client's death causing tax consequences.

$400,000.00

$200,000.00

FINRA

Without admitting or denying the findings, Crescenzo consented to the sanction and to the entry of findings that he borrowed a total of $25,000 from elderly customers without his member firms' knowledge or approval. The findings stated that during the relevant period, Crescenzo's firms' policies and procedures prohibited registered representatives from borrowing money from firm customers with limited exceptions, none of which apply here. Crescenzo repaid one of the customers after she filed a written complaint with his then-employer firm. Crescenzo also made a payment of $2,000 to the other customer, representing partial repayment of the related loans. Crescenzo never informed any of his associated firms of the loans from the customers. The findings also stated that Crescenzo completed an annual questionnaire at his firm in which he falsely answered "no" in response to a question asking if he had borrowed money from any customer.

Acceptance, Waiver & Consent(AWC)

Suspension

any capacity

Two years

4/4/2016

4/3/2018

On August 13, 2013, Crescenzo was granted a discharge in bankruptcy under Section 727 of Title 11, United States Code. Accordingly, no monetary sanction is being assessed in this matter.

CUSTOMER CALLED IN/EMAILED COMPLIANCE DEPARTMENT STATING THAT SHE WAS UPSET ABOUT LARGE LOSSES IN HER ACCOUNT IN AUGUST 2014. CUSTOMER ALSO DISCLOSED TO FIRM THAT SHE HAD PREVIOUSLY LOANED MR. CRESCENZO $10,000 IN JUNE 2011(WHILE HE WAS EMPLOYED AT ANOTHER BROKER DEALER, AMERIPRISE) AND HE HAS NOT PAID HER BACK YET (OTHER THAN ONE $2,000 PAYMENT). CUSTOMER WANTS HER LOAN PAID BACK IN ADDITION TO THE 10% INTEREST THAT HE PROMISED HER.

$9,000.00

$9,000.00

CLAIMANT ALLEGES UNSUITABLE AND UNAUTHORIZED INVESTMENT TRANSACTION; CLAIMANT ALLEGES "CHURNING"

$420,000.00

$62,500.00

PSI PAID $4000 TOWARDS THE GLOBAL SETTLEMENT

CLIENTS ALLEGE THTROUGH THEIR ATTORNEY THAT THEY WERE NOT MADE AWARE OF THE RISKY NATURE OF THEIR INVESTMENTS. IN ADDITION, ALLEGE THAT THEIR FA TOLD THE HUSBAND TO SIGN HIS WIFE'S NAME ON THE NEW ACCOUNT DOCUMENTS SO THAT SHE HAS NOT ACTUALLY AUTHORIZED THE INVESTMENT.

$60,000.00

$24,999.00

FA WAS ASKED TO CONTRIBUTE $5,000, BUT HE HAS NOT YET AGREED TO DO SO.