Troy Orlando Suspended over Excessive Trading Allegations
Troy Orlando (CRD# 6055474), formerly a broker registered with Craft Capital Management, recommended excessive, unsuitable transactions in a customer’s account, according to a recent disciplinary action. MDF Law is investigating the former New York City-based financial professional for similar conduct. We urge investors with concerns about their accounts to contact us as soon as possible.
Details regarding the allegations against Mr. Orlando are available in this post. The information herein is based on a December 19, 2023 review of his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile.
Sanction Alleges Unsuitable and Excessive Trading
FINRA sanctioned Mr. Orlando in November 2023. According to a Letter of Acceptance, Waiver, and Consent (# 2019060753505), between January 2018 and November 2020, he recommended excessive and unsuitable transactions in five customers’ accounts. During the time period in question, he was registered with Worden Capital Management and later Spartan Capital Securities. As alleged, he “recommended high frequency trading” in the accounts, over which he held de facto control. The customers included:
-A 49-year-old accountant with an investment objective of speculation;
-A 63-year-old real estate executive;
-A 67-year-old car dealership owner with limited investment knowledge and an objective of speculation;
-A 48-year-old engineer with a speculative investment objective;
-A 71-year-old truck driver with a speculative investment objective.
Mr. Orlando’s allegedly excessive and unsuitable trading caused trading costs ranging from $24,988 to $65,934, FINRA found, and realized losses ranging from $12,818 to $80,072.
FINRA Rules Mandate Suitable Recommendations
As the AWC Letter states, before June 30, 2020, FINRA Rule 2111 required brokers to have a reasonable basis to believe that their recommendations were suitable for their customers. As of June 30, 2020, Regulation Best Interest requires brokers to make recommendations that are in the best interest of their customers. Violations of these rules are also violations of FINRA Rule 2010, under which brokers must “observe high standards of commercial honor and just and equitable principles of trade” as they conduct their business.
Troy Orlando Consents to 20-Month Suspension
Mr. Orlando did not admit to or deny FINRA’s findings. He did, however, consent to their entry, and to FINRA’s imposition of certain sanctions. These include a 20-month suspension from associating with any FINRA member firm in all capacities, and an order to pay restitution of $58,082, plus interest. His suspension began on November 15, 2020 and will end on July 15, 2025.
FINRA: Orlando Last Based in NYC
Troy Orlando launched his career as a broker in 2012, when he joined J.H. Darbie & Company’s office in New York City. He left the firm in 2015 for Spartan Capital Securities, where he remained until he joined Worden Capital Management in 2019. He later went on to work at Joseph Stone Capital, Joseph Gunnar & Company, and Craft Capital Management, where he was registered from 2022 until his suspension in 2023. With 11 years of experience as a broker, he has completed three industry exams and was last registered in New York City.
Call MDF Law for a Free Consultation
MDF Law’s experienced investment fraud attorneys have recovered more than $100 million in losses for the victims of broker fraud. We accept cases on contingency: clients only pay a fee if they win their case. We currently provide free consultations to investors nationwide. If you lost money working with Troy Orlando, call us at 800-767-8040 for a free consultation.