Sharing Customer Losses Leads To FINRA Suspension For Raymond Menna

Raymond Adam Menna (CRD #1918097) is a registered broker and investment advisor currently employed with Planmember Securities Corporation (CRD #11869) of Farmingville, NY. His previous employers include Prime Capital Services, Inc. (CRD #18334) and Mutual Capital Corp. (CRD #106813), both of Ronkonkoma, NY. He has been in the industry since 1989.

Menna has a total of three disclosures, one regulatory and two customer disputes.

On 11/17/2017, a customer filed a dispute alleging that Menna engaged in unauthorized trading, unsuitable investing, misrepresentation and material omissions, and requested damages of $1,000,000. All parties agreed to a settlement of $260,000.00 to avoid the associated costs of litigation. The agreement included stipulations that there was no admission or denial of the charges, and all allegations were denied.

Later, FINRA filed a regulatory action related to this customer dispute which led to a 45-day suspension and a $5,000 fine. Menna consented to the findings and has since paid the fine.

When one of his customer’s accounts went to zero after market losses and withdrawals, Menna informed the customer that he would give the customer money, who was not an immediate relative. Eventually, the monies totaled $15,000.  However, it can be considered a violation of FINRA rules for an advisor to pay a customer for losses in their account.

However, Menna failed to notify the firm in writing and obtain prior written authorization for this action. Additionally, during annual compliance questionnaires, Menna incorrectly answered that he was not involved in sharing in any profits or losses in a customer’s account, other than an immediate family member.

Without admitting or denying the findings, Menna agreed to the sanctions and has since paid the related fine. His suspension ended on 10/31/2018.

His only other dispute was filed on 12/01/2008, alleging that Menna failed to follow a customer’s instructions for changing her investments to non-risk. She requetsted damages of $56,754.00. This claim was denied. No other information was available.

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