An AWC was issued in which Leonid Yurovsky (CRD #4554905) was suspended from association with any FINRA member in all capacities for five months and ordered to pay $10,648.61 in restitution to a senior customer. In light of Yurovsky’s financial status, no monetary fine or prejudgment interest has been imposed. Without admitting or denying the findings, Yurovsky consented to the sanctions and to the entry of findings that he excessively and unsuitably traded customer accounts.
The findings stated that Leonid Yurovsky recommended that one customer, a farmer with limited investment experience, place trades in his account that resulted in an annualized cost-to-equity ratio of approximately 30 percent. The customer’s average monthly equity in his account was approximately $158,600, yet Yurovsky’s recommended trades resulted in the customer paying approximately $165,000 in commissions and other trade costs. In addition, Yurovsky recommended that a senior customer place trades in his account that resulted in a cost-to-equity ratio of approximately 25 percent. In several instances, Leonid Yurovsky recommended that the senior customer sell a security shortly after purchasing it, even though his recommendation to purchase the security had resulted in paying a substantial commission.
Although the senior customer’s account had an average monthly equity of approximately $42,000, Yurovsky’s recommended trades caused him to pay over $10,600 in commissions and other trade costs. Both customers relied on Yurovsky’s advice and accepted his recommendations. Leonid Yurovsky is only required to pay restitution to the senior customer since his member firm has paid as restitution the commissions and other trading costs charged to the other customer as a result of Yurovsky’s unsuitable securities recommendations.
The suspension is in effect from January 17, 2023, through June 16, 2023.