FINRA

Respondent Paesano failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All Capacities

n/a

9/3/2024

11/13/2024

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Paesano is suspended on September 3, 2024 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Claimants allege, inter alia, excessive trading with respect to investments from May 2011 to December 2015.

$4,458,000.00

Claimants allege, inter alia, Excessive trading with respect to investments - July 2014 to December 2016

$475,000.00

Claimants allege, inter alia, Excessive trading with respect to investments - July 2014 to December 2016

$390,000.00

Claimants allege, inter alia, Excessive trading with respect to investments - July 2014 to December 2016

$3,600,000.00

Claimant alleges, inter alia, selling away with respect to investments - Jan, 2011-Dec, 2016.

$5,492,162.00

$850,000.00

Claimants allege excessive trading and selling away, inter alia, With respect to investments. April 2013 - December 2016

$145,000.00

CLIENT'S ATTORNEY ALLEGES EXCESSIVE TRADING AND SELLING AWAY, INTER ALIA, WITH RESPECT TO INVESTMENTS. APRIL 2013 - DECEMBER 2016.

$145,000.00

Client alleges excessive trading, mismanagement of account per terms of written agreement, and alleges failure to notify him of changes in the trading strategy was tantamount to fraud. 01/01/2016-12/31/2016

$332,304.76

$89,774.79

Time frame: 2010 to 2013 Amended Allegations: Claimants allege being defrauded through outside business investments.

$575,000.00

$58,000.00

Claimants alleged, inter alia, excessive trading with respect to transactions in accounts - 2011 to 2016.

$1,200,000.00

MSWM

Discharged

Concerns related to employee's exercise of discretion and investment strategy.

CLIENT ALLEGES UNSUITABILITY, INTER ALIA, WITH RESPECT TO INVESTMENTS SEPTEMBER 2012 - OCTOBER 2013.

$1,000,000.00

$245,000.00

Mr. Paesano vehemently denies any allegations of wrongdoing. Mr. Paesano was not a party to the action and had no involvement in the Firm's decision to settle the matter. The client was an extremely sophisticated investor with extensive financial sector experience who understood the risks associated with the investment strategies employed in her accounts. It is Mr. Paesano's understanding that the matter was settled by the Firm for a portion of the alleged damages in order to avoid the costs and uncertainties of arbitration.

TIME FRAME: 2008-PRESENT CLAIMANT ALLEGES SECURITIES FRAUD, COMMON LAW FRAUD AND MISREPRESENTATION, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, FAILURE TO DISCLOSE MATERIAL CONFLICTS OF INTEREST, NEGLIGENCE, FAILURE TO SUPERVISE, RESPONDEAT SUPERIOR AND CONTROL PERSON LIABILITY REGARDING THE INVESTMENTS IN HIS ACCOUNTS AND THE PURCHASE OF A LEHMAN BROTHERS PRINCIPAL PROTECTED NOTE.

$228,912.00

$27,300.00

CLAIMANTS ALLEGE UNSUITABLE RECOMMENDATIONS, MISREPRESENTATIONS AND OMISSIONS IN CONNECTION WITH THE PURCHASE OF STRUCTURED NOTES. TIME FRAME: NOV 2007 AND MARCH 2008

$377,187.00

$170,000.00

CLAIMANT ALLEGES SECURITIES FRAUD, COMMON LAW FRAUD AND MISREPRESENTATION, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, FAILURE TO DISCLOSE A MATERIAL CONFLICT OF INTEREST, NEGLIGENCE, FAILURE TO SUPERVISE, RESPONDEAT SUPERIOR AND CONTROL PERSON LIABILITY REGARDING THE INVESTMENTS IN HIS ACCOUNTS AND PURCAHSES OF LEHMAN BROTHERS PRINCIPAL PROTECTED NOTES. TIME FRAME: 2007 TO THE PRESENT

$650,000.00

$225,000.00

TIME FRAME: 2007 TO THE PRESENT CLAIMANT ALLEGES SECURITIES FRAUD, COMMON LAW FRAUD AND MISREPRESENTATION, UNSUITABILITY, BREACH OF FIDUCIARY DUTY, FAILURE TO DISCLOSE A MATERIAL CONFLICT OF INTEREST, NEGLIGENCE, FAILURE TO SUPERVISE, RESPONDEAT SUPERIOR AND CONTROL PERSON LIABILITY REGARDING THE INVESTMENTS IN THEIR ACCOUNTS, INCLUDING LEHMAN BROTHERS NOTES AS WELL AS COMMON STOCK OF FINANCIAL INSTITUTIONS.

$654,000.00

$200,000.00

CLAIMANTS ALLEGE SECURITIES FRAUD, COMMON LAW FRAUD AND MISREPRESENTATION, UNSUITABILITY BREACH OF FIDUCIARY DUTY, FAILURE TO DISCLOSE A MATERIAL CONFLICT OF INTEREST, NEGLIGENCE, FAILURE TO SUPERVISE IN VIOLATION OF FEDERAL AND STATE SECURITIES LAWS AND FINRA RULES, RESPONDEAT SUPERIOR, CONTROL PERSON LIABILITY AND FAILURE TO SUPERVISE WITH REGARD TO THEIR PURCHASE OF STRUCTURED PRODUCTS ISSUED BY LEHMAN BROTHERS. TIME FRAME: 11/2007-3/2008.

$325,000.00

$155,000.00

CLIENT ALLEGES THE FINANCIAL ADVISORS PURCHASE OF STRUCTURED PRODUCTS WAS INAPPROPRIATE FOR ACCOUNT. CLIENT ALLEGES THE DECISION WAS MADE BY THE FINANCIAL ADVISORS TO PURCHASE RISKY, PARTIALLY PROTECTED STRUCTURED PRODUCT NOTES. TIME FRAME: MARCH 28, 2008 - JULY 20, 2011.

TIME FRAME: 2008 CLAIMANT ALLEGES THAT RESPONDENTS MADE UNSUITABLE RECOMMENDATIONS AND FAILED TO DIVERSIFY HER ACCOUNTS CAUSING UNSPECIFIED LOSSES DURING 2008.

$100,000.00

$117,000.00

CLAIMANT ALLEGES MISREPRESENTATIONS AND/OR OMISSIONS AND UNSUITABLE RECOMMENDATIONS IN CONNECTION WITH HER PURCHASES OF STRUCTURED NOTES ISSUED BY LEHMAN BROTHERS, LEHMAN BROTHERS COMMON STOCK, AND PREFERRED STOCK IN FINANCIAL SERVICE COMPANIES. TIME FRAME:2007 - 2008

$251,000.00

$124,000.00

CLAIMANTS ALLEGE THAT LEHMAN STRUCTURED PRODUCT AND COMMON STOCK INVESTMENTS WERE UNSUITAQBLE AND WERE MISREPRESENTED TO THEM.

$1,100,000.00

$475,000.00

CLAIMANT ALLEGES HIS ACCOUNTS HAD AN OVERCONCENTRATION IN FINANCIAL SECTOR SECURITIES CAUSING LOSSES.

$1,400,000.00

$400,000.00

IN THE FOREGOING ARBITRATION, I WAS NOT NAMED AS A RESPONDENT. BECAUSE I WAS NOT A PARTY TO THE ARBITRATION, I HAD NO CONTROL WITH RESPECT TO THE RESOLUTION OF THE MATTER, AND THUS THE SETTLEMENT DOES NOT REFLECT ANY ACKNOWLEDGEMENT OR ADMISSION BY ME OF ANY LIABILITY OR ANY MISCONDUCT WHATSOEVER. FURTHERMORE, UBS, WHICH DENIED ALL OF THE CLAIMS ASSERTED BY THE CUSTOMER, DID NOT ACKNOWLEDGE OR ADMIT ANY LIABILITY AND RESOLVED THIS ISSUE TO AVOID THE POTENTIAL COST AND UNCERTAINTIES OF THE ARBITRATION FORUM. FINALLY, AS A REFLECTION OF THE FACT THAT I HAD NO PERSONAL INVOLVEMENT IN THE OUTCOME OF THE ARBITRATION, I DID NOT , NOR WAS I ASKED TO PERSONALLY CONTRIBUTE ANY AMOUNT TO THE SETTLEMENT.

BREACH OF FIDUCIARY DUTY, MISREPRESENTATION, BREACH OF CONTRACT, BREACH OF WARRANTY, UNSUITABILITY

$434,000.00

CLAIMANT'S CLAIMS ARE DENIED IN THEIR ENTIRETY.

TIME FRAME: 1/1/2008 TO 1/20/2009. CLIENT ALLEGES THAT THE FA, WITHOUT INDICATING THE GREAT RISK, CONTINUED TO BUY CONCENTRATED POSITIONS IN FINANCIALS FOR HIS PORTOFOLIO, EVEN AS THE ECONOMIC OUTLOOKWAS DIRE.

$500,000.00

TIME FRAME: AUGUST TO DECEMBER 17, 2008 CLIENT ALLEGES THAT THE FA MISMANAGED HER ACCOUNT (DISCRETIONARY MANAGED ACCOUNT) BY DISREGARDING AND DISOBEYING HER DIRECT INSTRUCTIONS. DAMAGES ESTIMATED TO BE IN EXCESS OF $5,000.

$5,000.00

TIME FRAME: JANUARY 2008 TO THE PRESENT CLIENT ALLEGES THAT HIS ACCOUNTS WERE MISMANAGED WITH IRRESPONSIBLE INVESTMENT DECISIONS INCLUDING A LACK OF DIVERSIFICATION AND IMBALANCE IN INVESTMENTS ACROSS SECTORS AND INVESTMENT CLASSES. CLIENT FURTHER ALLEGES THAT 50% OF HIS PORTFOLIO WAS OVERWEIGHTED IN THE FINANCIAL AND TECHNOLOGY SECTORS. DAMAGES ESTIMATED TO BE IN EXCESS OF $5,000.

$5,000.00