A Tarrytown financial adviser claims that a meritless complaint by a former customer harms his reputation and should be erased from the public record.
Paul J. Tramontozzi petitioned Westchester Supreme Court on Nov. 5 to expunge a complaint on the BrokerCheck record maintained by the Financial Industry Regulatory Authority.
Removing the complaint “will not adversely affect the public,” the petition states, “as the publication of false and clearly erroneous allegations cannot accomplish the investor protection that … BrokerCheck systems purport to provide.”
Tramontozzi has been a registered financial adviser since 2003. He currently works for Stratos Wealth Partners Ltd. and LPL Financial LLC in Tarrytown, according to his BrokerCheck Record.
The Financial Industry Regulatory Authority, more commonly known as FINRA, regulates firms and individuals that sell securities. Although it is a private organization, it acts as a quasi -governmental agency that enforces U.S. Securities and Exchange Commission rules.
FINRA’s BrokerCheck database contains detailed reports that anyone can view about every firm and individual registered to sell securities. The reports include summaries of customer disputes and the final determinations.
Tramontozzi’s BrokerCheck report lists one dispute, a complaint received in April 2023 from a customer who alleged that an unauthorized investment was made on his investment account.
The complaint was denied.
BrokerCheck does not identify the client, but according to exhibits filed with the petition he is from North Salem.
In mid-December 2022, the client sought to set up a 401(k) plan by the end of the year, according to the petition. On short notice, the account was opened with $27,000 in cash.
Tramontozzi says he advised the client to keep the account in cash until they had time to discuss the client’s needs in greater detail.
In February 2023, he implemented their plan to put the cash and nearly $264,000 from a Fidelity Investments account into a growth fund.
But when the client received the account statement, he was surprised that the funds had been reinvested, the petition states, because he was “under the impression that they were going to keep the money in cash for now.”
Later, the client acknowledged that it was all a misunderstanding but he felt that they needed to communicate better. Tramontozzi says he communicated clearly on the phone, in person and in emails, but he appeased the client so as not to escalate the situation.
In April 2023, the client submitted a complaint to FINRA, alleging an unauthorized investment.
Publication of the complaint on BrokerCheck implies professional misconduct, the petition states, and misleads the public, employers and regulators.
FINRA rules allow for information to be removed from a BrokerCheck report, according to the petition, “when it is clearly erroneous, factually impossible, false or … potentially defamatory.”
Tramontozzi is asking the court to order FINRA to expunge the BrokerCheck report.
FINRA public relations director Rita De Ramos declined to comment on the lawsuit.
