Cetera Advisors must pay more than $3 million to a broker it fired in 2019 after Finra arbitrators found the firm was liable for wrongful termination.
In July 2019, Cetera dismissed Gerald J. Fasanella over allegations that he had made unauthorized trades in customer accounts. Fasanella filed an arbitration claim against Cetera a year later, alleging the firm conducted a “pre-meditated scheme to defame” and fire him.
Three Financial Industry Regulatory Authority Inc. arbitrators awarded Fasanella $3 million in compensatory damages in a decision Thursday. Cetera also must pay Fasanella $10,000 in expert witness fees and $375 in filing fees.
The Finra panel, which consisted of two public and one industry arbitrator, also recommended the expungement of the reason for termination on Fasanella’s Form U5. His departure should be deemed “voluntary," according to the award.
“We are very pleased with the award with the findings in favor of our client,” Fasanella’s lawyer, Michael Hill, managing partner at Menzer & Hill, said in a statement. “Given my 10-year experience as a chief compliance officer and my partner as in-house counsel for a broker-dealer, we like representing advisors in cases when they believe they were wronged by their firm.”
Fasanella, who is now president of Heron Financial Partners in Melbourne, Florida, according to his LinkedIn profile, didn't respond to a request for comment.
A spokesperson for Cetera declined to comment.
Fasanella is no longer registered as a broker, according to his BrokerCheck record. He is registered as an investment adviser in the Investment Adviser Public Disclosure database.
In addition to his 2019 separation from Cetera, he has eight customer disputes on his record, several of which center on alleged misrepresentations regarding options trading. One customer claim went to an award, one was denied, one was closed with no action and the others were settled.
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