Commissioner Bans “Churner” From Montana Securities Industry [AUDIO]
Montana Securities Commissioner Monica Lindeen has permanently barred a New York City-based securities salesperson from operating in Montana.
Lindeen's spokeswoman Jennifer McKee said the move that could force the man out of the securities industry nationwide.
"Joseph Biondolillo agreed last week to a fine and the revocation of his securities license in Montana for allegedly engaging in “churning” – or rapidly buying and selling on behalf of his clients in an effort to generate commissions for himself," McKee said. "Biondolillo’s pattern and practice of excessively trading in his clients’ account cost Montanans hundreds of thousands of dollars. His employer, Chelsea Financial Services, last year agreed to pay more than $262,000 in restitution to his Montana clients.Chelsea also paid a fine of $40,000 for allegedly not adequately supervising Biondolillo and also reimbursed Lindeen’s agency more than $11,000 to cover the cost of the investigation.
McKee said states communicate closely regarding bad actors like Biondolillo, which could put him out of business altogether.
"That behavior gets reported to FINRA, a firm that tracks the securities industry," McKee said. "It's typical that if a man is barred from operating in one state, eventually, every other state follows suit, so this could have the effect of permanently banning him from the securities industry in the United States."
Monica Lindeen spokeswoman Jennifer McKee