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Broker Timothy Leveroni Faces Suspension, Fine, and License Revocation Amid Regulatory Actions

As an expert financial analyst, I often come across stories that serve as cautionary tales for both investors and financial advisors themselves. This time we’re talking about the case of Timothy Leveroni, a broker with a rich background in the field who recently faced not one but two regulatory actions. The story behind these allegations not only raises questions about Leveroni’s conduct but emerges as a stark reminder of the significant role that trust and regulation play in the investment world.

Dissecting the Case: Allegations against Timothy Leveroni

In February 2024, Leveroni conceded to allegations claiming that he allowed other registered representatives to electronically sign his name on essential account documents. These papers included his member firm’s new account applications and account update forms. Subsequently, this led to the firm keeping inaccurate books and records.

Leveroni consented to the findings through an Acceptance, Waiver, and Consent agreement (AWC), resulting in a two-month suspension and a sizable $7,500 fine. Following this, the state of Maryland revoked his license for the same charges in April 2024.

These allegations were undeniably severe, delivering a hefty impact not solely on Leveroni’s career but potentially distressing for investors that trusted him with their hard-earned money. It is, unfortunately, a harsh reminder that, as Benjamin Franklin once said, “An investment in knowledge pays the best interest.”

Who is Timothy Leveroni?

Leveroni is not a newcomer to the finance sector. He carried a registration as a broker in 26 states and served as a registered investment advisor in Massachusetts and Texas. Over his 47 years of experience, Leveroni was associated with nine firms, most recently holding his tenure with LPL Financial.

Speaking of regulatory exams, Leveroni passed the Series 63, SIE, Series 7, Series 1, and Series 24. Yet the recent allegations and resulting consequences demonstrate that even highly experienced financial advisors can make grave errors or potential ethical breaches.

The Importance of Keeping Accurate Records: Unpacking FINRA Rule 4511

The crux of the allegations against Leveroni lay in the violation of FINRA Rule 4511, which underlines the requirement for firms to maintain accurate and current books and records.

This rule forms the backbone of financial transparency. In its simplest terms, this rule ensures accurate, reliable, and timely recording of financial transactions, paramount for protecting investors, making fair business decisions, and maintaining a sound financial system. Additionally, it fosters confidence among investors, knowing that their investments are being recorded accurately and can be audited at any point.

Consequences, Lessons Learned, and Moving Forward

In the aftermath of the allegations, the repercussions for Leveroni were significant – a two-month suspension, a $7,500 fine, and the loss of his license in Maryland. However, the ripple effect extends beyond the legal consequences. Experiences like this can erode investor confidence, a vital aspect of a healthy investment market.

Perhaps the primary lesson to glean from this episode is the fundamental need for trust and transparency in financial transactions. Investors place not just their money but their dreams and future plans in the hands of financial advisors. Breaches of trust, such as the ones Leveroni has been accused of, not only impact the individual advisor but can also reflect poorly on the financial advisory profession as a whole.

It’s a sobering thought to remember that, according to a study by the Center for the Study of Financial Market Evolution (CSFME), advisors who breach fiduciary duty cause more financial harm per customer than any other type of financial fraud. As financial experts, we have an obligation to uphold the highest standards of professionalism and ethics, a responsibility we owe to our investors and ourselves.

Visit the FINRA website for a detailed review of Timothy Leveroni’s situation and BrokerCheck record.

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