D’Andria allegedly recommended unsuitable NT-ETPs to his clients.
The Sonn Law Group is investigating allegations that Robert D’Andria made unsuitable investment recommendations. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Robert James D’Andria (CRD#: 1916172) consented to the sanctions and to the entry of findings by FINRA that he recommended the purchase of non-traditional exchange-traded products (NT-ETPs) to customers without having a sufficient understanding of the risks and features associated with these NT-ETPs and thereby failing to have a reasonable basis to make these recommendations.
The findings stated that D’ Andria failed to perform a reasonable basis suitability analysis of NT-ETPs to understand the unique features and specific risks associated with these products before offering them to his customers. In fact, the prospectuses for the NT-ETPs that D’Andria recommended warned that the products were risky, intended to be daily trading tools for sophisticated investors, and should be actively and frequently monitored, even intra-day. Moreover, D’ Andria did not understand that losses in NT-ETPs are compounded because of how the valuations reset each day.
The findings also stated that the customers held these positions for periods ranging from 30 to 758 days. The average holding period was 327 days. These extended holding periods caused D’ Andria’s customers to incur approximately $93,000 in losses. D’ Andria’s member firm consented to supervision charges in relation to his unsuitable recommendations of NT-ETPs and agreed to a fine and order of restitution to be paid to the affected customers.
D’Andria was suspended for a period of two months and fined $5,000. D’Andria has five other disclosures on his BrokerCheck report.
April 2003 Regulatory Judgment
- Initiated By: National Association of Securities Dealers, Inc.
- Allegations: “NASD Conduct Rule IM-1000-1 and 2110 – respondent failed to disclose material facts on his form U4..”
- Resolution: Acceptance, Waiver & Consent
- Sanctions: Suspension
- Regulator Statement: “Without admitting or denying the allegations, the respondent Robert D’Andria consented to the finding of the allegations and to the following sanctions: fined $5,000 and suspended for 10 days from association with any NASD member in any capacity. The fine shall be due and payable either prior to reassociation with a member firm following the suspension or prior to any application or request for relief from any statutory disqualification resulting from this or any other event or proceeding, whichever is earlier. The suspension will commence with the opening of business on June 2, 2003, and will conclude at the close of business on June 11, 2003. Fines paid 11/04/2003.”
January 2001 Employment Separation After Allegations
- Firm Name: Merrill Lynch
- Termination Type: Discharged
- Allegations: “Terminated for violating Merrill Lynch policy after client authorized document to be initialed to transfer funds from her single account to her joint account for a real estate closing. Against my better judgment, I aided the client in her request and it cost me my career at Merrill Lynch.”
- Broker Comment: “Terminated for violating Merrill Lynch policy after client authorized document to be initialed to transfer funds from her single account to her joint account for a real estate closing. Against my better judgment, I aided the client in her request and it cost me my career at Merrill Lynch. – The transaction was never [rescinded].”
August 2000 Customer Dispute
- Status: Settled
- Allegations: “Customer alleges misrepresentation of a mutual fund investment to them. Customer further alleges unauthorized purchase in one of their accounts and use of margin without [authorization].”
- Damage Amount Requested: $97,856.00
- Settlement Amount: $30,000.00
- Broker Comment: “This transaction was in the client’s account 3 weeks before a complaint was filed. The security decreased in value and the accusation was made.”
May 2000 Customer Dispute
- Status: Denied
- Allegations: “Customer alleged that Mr. D’Andria bought Knight/Trimark call options in August 1999 without his authorization. In addition, a customer alleged that the purchases of 200 shares of E-Trade group common stock on May 6, 1999, and 100 shares of Qualcom on January 4, 2000, were unauthorized. The customer claimed damages of $6,250.”
- Damage Amount Requested: $6,250.00
- Broker Comment: “Merrill determined the claims were without merit.”
January 2000 Customer Dispute
- Status: Settled
- Allegations: “[Customer] verbally alleged I purchased 2000 shares of Ashford.com stock on 11/30/99 without authorization (two months after the trade)..”
- Settlement Amount: $41,363.17
- Broker Comment: “Merrill Lynch made a business decision to correct the purchase of Ashford.com to avoid costs and uncertainty of litigation.”
Contact Us Today
The Sonn Law Group is currently investigating allegations that Robert D’Andria made unsuitable investment recommendations. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.