John Borsellino: FINRA Suspends Stamford Broker
John Borsellino (CRD# 2006663), a financial professional previously registered with Morgan Stanley, has been sanctioned by the Financial Industry Regulatory Authority in connection to allegations of unsuitable trading. A representative with the firm’s office in Stamford, Connecticut, Borsellino was issued a three-month suspension and a fine of $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2018057097301) dated December 2019, John Borsellino was associated with Morgan Stanley as a General Securities Representative from 2009 until 2018, when the firm filed notice of his termination over concerns “about asset movements between, and the timing of trades in, accounts for the same clients with different fee characteristics.” FINRA’s findings go on to state that between January 2014 and December 2016, he recommended “eight customers purchase 28 municipal bonds and 15 non-municipal securities in their brokerage accounts,” resulting in upfront sales charges incurred by the customers. FINRA states that in all of these cases, Borsellino transferred the security to the customer’s fee-based account within 90 days after purchase, even though in every case he “could have purchased the security in the fee-based account without any upfront sales charges.” According to FINRA, the sales charges connected with these 43 trades totaled about $58,000—which Morgan Stanley later reimbursed to the clients in question—and Borsellino himself earned about $23,900 in connection with these purchases, which he “lacked a reasonable basis to believe” were suitable. As a result of the foregoing alleged conduct, he was suspended from associating with any FINRA member in any capacity for three months. He was also ordered to pay a fine of $5,000, as well as $23,000 in disgorgement of the commissions he received.
John Borsellino is currently not registered as a broker. His previous registrations include Morgan Stanley, Morgan Stanley & Company, Morgan Stanley DW, and Merrill Lynch. He has passed five securities industry qualifying examinations and his BrokerCheck report lists no state securities licenses. (Information current as of May 8, 2020.)