My Take on Joao Pinto’s Missteps with a Retiree’s Investments

Dissecting a convoluted sequence of events, I’ve been closely watching the actions taken by the Financial Industry Regulatory Authority (FINRA) against Joao Pinto, a broker from New York (CRD# 6298233). The accusations leveled against him are serious — engaging in excessive and ill-suited trades in the account of someone who simply wished to enjoy their retirement. It’s cases like these that underscore why investors must remain cautious and informed.

Inappropriate Trading: When Aggressiveness Backfires

On November 21, 2023, FINRA laid out an unsettling narrative in a formal document (AWC # 2018056490307). A staggering 130 trades transpired in the account of a 68-year-old retiree over merely a year and a half. The total expenses incurred? A hefty $92,237, out of which a shocking $83,484 went to commissions. Further, these trades spiraled into losses of $141,051. Just to cover these costs, the investments would have had to surge by over half of their value yearly. As Warren Buffett wisely remarks, “Risk comes from not knowing what you’re doing” — this might just be the epitome of that risk.

Defying the Suitability Standard: Ignoring Key Regulations

Under FINRA’s rules, brokers like Pinto are supposed to align their advice with the financial objectives and risk comfort of their clients. Unfortunately, FINRA’s allegations suggest Pinto completely disregarded these suitability obligations and even breached the “Regulation Best Interest,” which compels brokers to prioritize their clients’ needs above all else. The missteps didn’t stop there — these actions also contradicted FINRA Rule 2010, adding gravity to Pinto’s alleged wrongdoings.

Repercussions: A Brief Suspension and Lingering Complaints

In light of these heavy allegations, FINRA imposed a three-month suspension on Pinto, starting from December 18, 2023. But the fallout goes deeper. An investor had already filed a complaint against Pinto before this decision was made, citing excessive trading and negligence, and demanded over a quarter of a million dollars for the damage done. This ongoing dispute paints a stark picture of the real-life consequences of reckless investing practices.

stock news(AD) Lost money because of bad financial advice or outright fraud? You may get it back by filing a complaint. Haselkorn & Thibaut has 50+ years of experience and a 98% success rate. Don’t delay if you’ve suffered losses. 

Call Haselkorn & Thibaut at 1-888-784-3315 for a free consultation, or visit InvestmentFraudLawyers.com to schedule. No Recovery, No Fee.

While Pinto stands firm, denying wrongdoing and asserting that all trades had the customer’s green light, the curtain is far from closing on this case. Here is a New York City broker, barely a decade into his career, now entangled in a web of examinations that may just define his professional future.

This fiasco with Pinto serves as a stark reminder of the critical need for investor awareness and the thorough examination of the financial professionals entrusted with their life savings. Did you know that a significant number of bad financial advisors aren’t fiduciaries? This means they aren’t legally obligated to put your best interest first. So, when choosing someone to guide you on your financial journey, always verify their FINRA CRM number and be on the lookout for any past transgressions. It’s your money, and its safety should never be compromised.

In sum, to all seeking financial guidance: You must be the guardian of your own wealth. Do your due diligence, and don’t shy away from asking the tough questions — or you might wish you had.

Scroll to Top