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Michael Desando: FINRA Suspends Red Bank Advisor
The Financial Industry Regulatory Authority (FINRA) recently sanctioned Network 1 Financial Securities advisor Michael Desando (CRD# 1849321). FINRA records show that the Red Bank, New Jersey broker allegedly engaged in excessive and unsuitable trading in a customer’s account and has been suspended for three months.
According to a Letter of Acceptance, Waiver, and Consent (No. 2021072685301) issued in August 2022, Mr. Desando was associated with Network 1 Financial Securities when, between January 2017 and November 2018, he “recommended an excessive and unsuitable level of trading in the account of one customer, a sheriffs deputy with limited investment experience.” The findings state specifically that he recommended “180 trades… with a total principal value of more than $1,700,000” in the account, which had $30,700 in average equity. The trades in question allegedly resulted in “an annualized turnover rate of more than 28 and collectively caused the customer to pay $37,000 in commissions and other trading costs.” The customer, FINRA’s findings note, “relied on Desando’s advice and accepted his recommendations.” In connection with these findings, FINRA fined Mr. Desando $5,000 and issued him a three-month suspension from associating with any FINRA member in any capacity.
Mr. Desando’s BrokerCheck report discloses two investor complaints. The most recent, filed in 2019, alleged that he breached his fiduciary duty as a representative of Network 1 Financial securities. In 2020 the complaint reached a settlement of $10,000. In a statement included in the disclosure, he defended himself against the allegations, writing: “I vehemently deny all claims of wrong doing. The complaint contains false statements. I have settled this matter for a nominal sum saving litigation cost and time.”
A second investor complaint, filed in 2010, alleged that as a representative of VFinance Securities, he recommended unsuitable investments, made excessive trades, and mismanaged the account. The complaint reached a settlement that year of $160,000.
According to the Financial Industry Regulatory Authority, Mr. Desando holds 34 years of securities industry experience. Based in Red Bank, New Jersey, he has been a broker with Network 1 Financial Securities since 2016. His past registrations include Garden State Securities, Global Arena Capital Corporation, Ridgeway & Conger, First Midwest Securities, VFinance Investments, Delta Equity Services Corporation, First Union Securities Financial Network, Northeast Securities, PCM Securities, Meyers Pollock Robbins, Tamaron Investments, First America Equities Corporation, Brennan Ross Securities, Vanderbilt Securities, and JT Moran & Company. His credentials include the passage of four securities industry qualifying exams: the General Securities Principal Examination, or Series 24; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He is licensed in Colorado, Florida, Kentucky, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, and Washington. (Information current as of October 1, 2022.)
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