The former New York broker has been accused of over-concentration
Thomas Borruso can no longer act as a broker in the securities industry. In June of this year, he received a suspension from the Financial Industry Regulatory Authority (FINRA) stemming from a customer dispute. And when Borruso failed to provide FINRA with information it needed, the agency barred him permanently.
The dispute Borruso was involved in occurred in January of 2017. A customer alleged that Borruso over-concentrated the account in one equity position. The damages sought haven’t been specified, but they are believed to be over $5,000. The case is still pending.
Due to the volatility of the market, having a lot of money tied up in one security can be extremely risky. This is why maintaining a diverse portfolio can help mitigate the risk of losses. If a broker over-concentrates client investments, this could constitute negligence or unsuitable advice, both of which violate FINRA rules.
In his brief brokerage career, Borruso worked for three firms. He began with National Securities Corporation out of Westbury, NY, in February of 2008. In April of 2014, he moved on to Rockwell Global Capital LLC in Melville, NY. Finally, Borruso worked for LPL Financial LLC, also in Melville, from December 2014 to July of 2016.
This is not the first time a broker with LPL Financial LLC has faced allegations. Over the years, the firm has been charged with numerous violations, including failure to supervise and fraud. Millions of dollars have been awarded in damages.
FINRA has more information about Thomas Joseph Borruso and LPL Financial in their BrokerCheck reports.
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