Raymond DiMuro Barred by SEC Following Civil Suit

Raymond DiMuro (CRD #: 3195132), a broker formerly registered with Charles Schwab & Company, has been barred by the SEC, according to his BrokerCheck record, accessed on November 5, 2024. If you have questions about his alleged conduct as a broker, read on.

Bar by SEC

On October 24, 2024, the Securities and Exchange Commission barred Raymond DiMuro following a civil suit filed against him by the SEC on October 4, 2024.

The SEC alleged that Raymond DiMuro engaged in a cherry picking scheme from at least January 2018 to January 2022. This scheme allegedly involved using Your Source Financial’s block trading account to disproportionately allocated profitable stock and option trades to three clients, resulting in these investors receiving $1,007,248 in excess profits as compared to Raymond DiMuro’s other clients.

Final judgment in that lawsuit permanently enjoined Raymond DiMuro from future violations of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

Securities Act of 1933

Sections 17(a)(1) and (3) of the Securities Act of 1933 prohibit the use of deceptive schemes or practices to defraud customers participating in interstate securities transactions.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 bans manipulative, deceptive, and otherwise fraudulent activities relating to the securities business. Rule 10b-5 specifically prohibits false statements and omissions of fact that mislead investors.

Investment Advisers Act of 1940

Sections 206(1) and (2) of the Investment Advisers Act of 1940 forbid the use of fraudulent and deceptive schemes or practices.

Sanctions

The SEC permanently barred Raymond DiMuro from associated with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organizations (NRSRO)

SEC Civil Suit

On September 18, 2024, the SEC filed a civil suit against Raymond DiMuro alleging that he, as an investment adviser representative and principal of investment advisory firm Your Source Financial, engaged in a cherry picking scheme.

The SEC alleged that, from at least January 2018 to January 2022, Raymond DiMuro used his discretionary power in clients’ accounts to disproportionately allocate favorable trades to certain clients over others. He allegedly executed these trades through a block trading account, allowing him to place trades and then allocate them to clients afterwards.

The “favored clients” allegedly received significant trading profits while “unfavored clients” experienced substantial losses.

The SEC alleged that Raymond DiMuro violated his fiduciary duties to his clients, including his duty of care and duty of loyalty, as well as the antifraud provisions of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

This civil suit was resolved in an order accepting consent judgment which included civil penalties/fines, an injunction, and unspecific undertakings for Raymond DiMuro.

Background Information

Raymond DiMuro has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• Series 7 – General Securities Representative Examination

He previously worked for Charles Schwab & Company (CRD#:5393).

Kurta Law Can Help

If you worked with Raymond DiMuro and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.