Last Updated: April 2025 – Melville, NY
Joseph Todaro Investigation Summary
Here’s what you need to know about Melville, NY, stockbroker Joseph Todaro:
- Name: Mr. Joseph Paul Todaro
- Current Status: Barred from acting as a broker by FINRA
- CRD Number: 5708585
- Previous Employers: Network 1 Financial Securities Inc., SW Financial, Worden Capital Management LLC, Spartan Capital Securities, LLC, Laidlaw & Company (UK) Ltd., Craig Scott Capital LLC, Rockwell Global Capital LLC, EKN Financial Services Inc.
- Function: Stockbroker / Financial Advisor
- Terminated by a Prior Employer: Yes
- Sanctioned by FINRA: Yes
- Total Customer Disputes: 11
- Sanctioned by Securities Regulators: Yes
- Discloses Judgments/Liens: Yes
- Highest Reported Customer Award: $131,555
- Four Pending Customer Disputes
If you’ve sustained damages from Mr. Todaro, discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Joseph Todaro As Your Stockbroker?
On September 28, 2023, the U.S. Securities and Exchange Commission filed a civil complaint in the Eastern District of New York (Case No. 1:23-cv-07250) alleging that Joseph Todaro and others engaged in excessive trading and unsuitable investment recommendations from August 2018 through June 2022 while associated with SW Financial.
According to the SEC’s complaint, Todaro and his co-defendants recommended over 2,000 trades in at least 16 customer accounts, causing over $1 million in losses while collecting more than $660,000 in commissions and fees. The complaint alleges violations of:
- Section 17(a) of the Securities Act of 1933
- Section 10(b) of the Securities Exchange Act of 1934
- SEC Rules 10b-5 and Regulation Best Interest (Reg BI)
The SEC seeks penalties and fines as well as disgorgement.
In FINRA Case No. 23-00391, an arbitration award was entered against Todaro in the amount of $131,555 (see below), which he had not satisfied as of August 2024. This failure led to a suspension on August 12, 2024 under FINRA Rule 9554 and eventually a bar from acting as a broker for non-compliance with an arbitration award.
Other Cases Involving Unauthorized Trading
Discretionary vs. Non-Discretionary Accounts
Allegations of Broker Misconduct Against Joseph Todaro
Mr. Todaro has a record of customer disputes and other issues that includes:
- 11 customer disputes – Allegations range from churning, unauthorized trading, excessive commissions, breach of fiduciary duty, and suitability violations. Settlements of $19,000, $14,000, $60,000, $14,800 and an arbitration award ordering him to pay $131,555. There are three pending cases. One seeks $206,000 and damage amounts have not been specified yet in the others.
- Judgments and Liens:
- Five outstanding judgments, including two IRS tax liens totaling over $66,000 and multiple civil judgments.
- Employment Termination: Discharged from SW Financial in 2021 for unauthorized communications after previous reprimands.
What is Excessive Trading (Churning)?
Churning According to U.S. Securities and Exchange Commission (SEC)
Other Investigations Involving Churning
Many of the customer complaints involve violations of FINRA Rule 2111 (suitability), FINRA Rule 2010 (standards of commercial honor), and FINRA Rule 3010 (failure to supervise).
Recover Your Investment Losses Now With Rex Securities Law
Our Investigations of Other SW Financial Brokers
Investigations of other Worden Capital Management Brokers
Our Investigations of other Network 1 Brokers
If you have suffered investment losses in an account handled by Joseph Paul Todaro, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL, and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors, and broker-dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.