FINRA, the Financial Industry Regulatory Authority, has barred Paul Pitsironis (CRD#: 2804907), from the securities industry for allegedly stealing from a customer, according to his BrokerCheck report accessed on September 12, 2019. All three of the disclosures on Paul Pitsironis’s BrokerCheck record stem from the allegation that he stole $411,000 from a client’s account while a broker at Janney Montgomery Scott.
On June 17, 2019, a client filed a customer complaint against Paul Pitsironis, alleging that “Financial Advisor transferred assets from their account to a third party bank account not in the clients’ name.” The customer alleged that the questionable activity took place between May 2, 2019 and June 11, 2019.
On June 19, 2019, Janney Montgomery Scott terminated Paul Pitsironis. According to BrokerCheck, he was discharged from the broker-dealer “after an internal investigation uncovered that the [Financial Advisor] transferred funds via unauthorized ACHs from a client’s account to a third party bank account owned and controlled by the [Financial Advisor.]”
The relationship between an investment advisor and a client must be based on trust. When a broker steals from a client, they violate that trust. Stealing customer funds is a blatant violation of FINRA Rule 2150, which prohibits the
“improper use of customers’ securities or funds.” Furthermore, FINRA Rule 2010 requires brokers to act with “commercial honor.” When an unscrupulous broker commits unethical acts, this can undermine consumers’ faith in the securities industry.
Three months after he was terminated from Janney Montgomery Scott terminated him, on September 9, 2019, Paul Pitsironis entered into an Acceptance, Waiver, and Consent (AWC) with FINRA. His AWC gives more details concerning how he allegedly siphoned money out of a client’s brokerage account 22 times. According to the AWC, “In May and June 2019, Pitsironis electronically transmitted $411,000 in cash from a customer’s securities account at Janney to a bank account Pitsironis controlled through 22 ACH transfers, without the customer’s knowledge or consent. Upon learning of Pitsironis’s actions, Janney made the customer whole.” Ultimately, Paul Pitsironis consented to a permanent bar from the securities industry and is no longer affiliated with any FINRA member firm in any capacity.
Throughout his 22-year career in the securities industry, he worked for four brokerage firms, mostly on Long Island:
- Janney Montgomery Scott, LLC (CRD#: 463) of Melville, New York
- Wells Fargo Clearing Services, LLC (CRD#: 19616) of Hauppage, New York
- RBC Capital Markets, LLC (CRD#: 31194) of Jericho, New York
- Morgan Stanley DW Inc. (CRD#: 7556) of Purchase, New York
If Paul Pitsironis was your broker or if you fear your broker may have stolen from your account, please don’t hesitate to contact a securities attorney. Call (877) 238-4175 or email email@example.com for your free consultation.