Craig Scott Taddonio (CRD #4773787, Babylon, New York)

June 19, 2023 – An SEC decision became final in which Taddonio was barred from association with any FINRA member in all capacities. The SEC affirmed the findings and the sanctions imposed by the NAC. The sanctions were based on the findings that Taddonio failed to exercise reasonable supervision. The findings stated that Taddonio failed to respond reasonably to red flags that a senior broker and other firm brokers were engaged in excessive trading. The SEC agreed with FINRA’s conclusion that Taddonio’s supervisory failures were egregious and sustained the bar FINRA imposed for this misconduct. Taddonio, as president of the firm, did not respond to red flags of excessive trading (including very high turnover rates and cost-to-equity ratios) for a year and, when he did so, his new policies were not reasonably designed to prevent the excessive trading, which continued. The findings also stated that Taddonio gave false sworn testimony at a FINRA on-the-record interview about whether the firm recorded calls with customers. The SEC agreed that a second bar FINRA imposed for this serious violation was necessary to protect the investing public from an individual who would prevent FINRA from performing its self-regulatory function by lying during an investigation. (FINRA Case #2015044823501)