A former New York securities broker accepted a ban from the securities industry after allegations he defrauded a 90-year old Minnesota man of $511,000.

FINRA announced that Sergio M. Del Toro agreed to the ban without admitting or denying the alleged misconduct, but consenting to findings.

At the time of the alleged activity, the Minnesota man was living with his 87-year-old wife in a nursing home. The man died in 2006, before his daughter brought Del Toro’s activities to the attention of FINRA.

FINRA indicated that from 2004 to 2006, on Del Toro’s recommendation, the man invested $511,000 in 3rd Dimension, a speculative, development-stage company, whose securities were not publicly quotes or traded, nor did it have publicly available financial information. 3rd Dimension developed and distributed digital media audio and video technologies for the Internet.

Del Toro knew the company had little or no revenues at the time of his recommendation, FINRA found. FINRA also discovered that Del Toro, in an attempt to cover up his activities, sold the securities to the Minnesota man without the knowledge of the two brokerages where he was then registered.

To secure a $351,000 investment, Del Toro promised, in writing, that he would buy the shares back for $400,000 if the man was not satisfied with the investment. The man made an additional $160,000 in stock purchases based on Del Toro’s recommendation, FINRA found. Del Toro received a 15% commission on the sales, amounting to $76,650.

Del Toro was found to have effected unsuitable investments for the customer given the man’s age and financial condition, FINRA said. Del Toro also had no reasonable basis for valuing the company’s stock at between $3 and $4 per share.

“One of FINRA’s highest objectives is to protect our nation’s elderly citizens from fraudulent conduct by brokers,” said Thomas R. Gira, executive vice president for market regulation. “Del Toro preyed on this vulnerable customer by defrauding the customer of over half a million dollars that he earned over a lifetime of hard work, at a time that the customer and his family needed it most.”