Securities Arbitration Lawyers BlogFINRA Suspends Joseph Fedorko For Excessive & Unsuitable Trading
![Joseph Fedorko (Joseph Michael Fedorko CRD#] 2007317) is a previously registered broker whose last known employer was Laidlaw & Company (UK) LTD. (CRD#:119037) of Greenwich, CT. His previous employers include Oppenheimer & Co. Inc. (CRD#:249) of Stamford, CT, Josephthal & Co., Inc. (CRD#:3227) and Gruntal & Co., L.L.C. (CRD#:372), both of New York, NY. He has been in the industry since 1989. Fedorko has a total of 19 disclosures dating back to 1995. However, the most recent disclosure is from FINRA, after he excessively traded in the account a married senior couple from January 1, 2014, to December 31, 2019. He exercised de facto control over the couple’s account, and the couple trusted his recommendations. During this period, Fedorko and his firm (Laidlaw) exercised more than 1,200 transactions in the customers’ account. This excess trading led to losses of approximately $1.1 million, known as “churning.” However, the trading also generated $760,000 in commissions and markups for the firm, with Fedorko receiving 25% of the commissions and markups. After the customers filed a claim, the firm reimbursed them for their losses and closed their arbitration.](https://www.silverlaw.com/blog/wp-content/uploads/2022/03/Joseph-Fedorko.png)
Joseph Fedorko (Joseph Michael Fedorko CRD#] 2007317) is a previously registered broker whose last known employer was Laidlaw & Company (UK) LTD. (CRD#:119037) of Greenwich, CT. His previous employers include Oppenheimer & Co. Inc. (CRD#:249) of Stamford, CT, Josephthal & Co., Inc. (CRD#:3227) and Gruntal & Co., L.L.C. (CRD#:372), both of New York, NY. He has been in the industry since 1989.
Fedorko has a total of 19 disclosures dating back to 1995. However, the most recent disclosure is from FINRA, after he excessively traded in the account of a married senior couple from January 1, 2014, to December 31, 2019. He exercised de facto control over the couple’s account, and the couple trusted his recommendations.
During this period, Fedorko and his firm (Laidlaw) exercised more than 1,200 transactions in the customers’ account. This excess trading, known as “churning”, led to losses of approximately $1.1 million. However, the trading also generated $760,000 in commissions and markups for the firm, with Fedorko receiving 25% of the commissions and markups. After the customers filed a claim, the firm reimbursed them for their losses and closed their arbitration.
After FINRA’s investigation into Fedorko’s trading, it imposed sanctions of a $7,500 fine and a ten-month suspension from affiliation with any FINRA member broker in all capacities. The suspension began on 1/18/2022 and ends on 11/17/2022. Fedorko signed a letter of Acceptance, Waiver & Consent (AWC) agreeing to the sanctions, but neither admitting nor denying the findings.
Similar allegations exist in Fedorko’s previous disclosures, many of which were settled. Seven of these disclosures are dated from 2011 through 2020 and settled for various amounts. In several cases, Fedorko denied the claims and stated that he would “vigorously” defend himself against the allegations.
Six additional customer disputes were either withdrawn, denied, or closed with no action. Some had the same claims of churning, others alleged unsuitable investments, unauthorized transactions, misrepresentations, and “high pressure sales tactics.” Fedorko denied the allegations.
Did You Invest With Joseph Fedorko?
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