Securities Lawyers Blog

Christian Lucchetto Suspended by FINRA Over Excessive Trading

September 6, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Christian Frank Lucchetto (Lucchetto), currently employed by Arive Capital Markets has been subject to at least one regulatory action and one criminal action during the course of his career.

In January 2021, Lucchetto faced a regulatory action commenced by FINRA. Lucchetto consented to the entry of findings that he engaged in unsuitability and excessive trading in his customer’s account. The sanctions included $5,000 in civil penalties and administrative fines, as well as $30,454.86 in restitution. Additionally, FINRA suspended Lucchetto in all capacities from February 2021 through May 2021.

Advisor Erik Drewes Expunges Three Customer Complaints From His Disclosures

September 6, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP have reviewed BrokerCheck records reports that broker Erik Drewes (Drewes), currently employed by American Capital Partners LLC, has been subject to at least three customer complaints during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Drewes’s customer complaints allege that he participated in churning and failed to perform adequate due diligence on REIT investments. However, these complaints have been expunged from Drewes’ record under FINRA’s notoriously flawed expungement procedures. The expunged complaints are as follows:

In April 2020, a customer complained that Drewes violated securities laws by alleging that Drewes failed to do adequate due diligence on a REIT before investing in it. The claim settled in the amount of $14,900.

In November 2014, a customer complained that Drewes violated securities laws by alleging Drewes engaged in unsuitable investment advice and churning. The claim settled in the amount of $110,000.

In April 2008, a customer complained that Drewes violated securities laws by alleging Drewes failed to supervise in relation to unauthorized and excessive trading. The claim settled in the amount of $12,795.

Advisor Serge Parakhnevich Has Complaints and Regulatory History

September 2, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Serge Parakhnevich, currently employed by PHX Financial, Inc. (PHX), has been subject to at least three customer complaints and one regulatory sanction in his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Parakhnevich customer complaints allege that Parakhnevich engaged in unsuitable investment practices and excessive trading, among other allegations made by customers. Also, the regulatory sanction claims that Parakhnevich fraudulently traded in the account of a customer without approval.

In August 2020, FINRA made findings in a consent order that Parakhnevich violated the securities laws by executing trades in a customer’s accounts without the customer’s prior written authorization or his member firm’s approval of the account as discretionary. The findings stated that Parakhnevich completed and submitted firm compliance questionaries wherein he falsely answered questions related to whether he handled customer accounts on a discretionary basis. Without admitting or denying the findings, Parakhnevich consented to the sanctions. Parakhnevich was issued a $7,500 fine along with all his registration capacities being suspended for forty-five days.

In April 2020, a customer complained that Parakhnevich violated the securities laws by alleging that Parakhnevich engaged in unsuitable investment practices. The claim alleges $249,281 in damages and is pending.

In August 2015, a customer complained that Parakhnevich violated the securities laws by alleging that Parakhnevich engaged in unauthorized trading, excessive trading, and churning. The claim alleged $100,000 and was denied.

Capstone Financial’s David Melilli Allegedly Violates Securities Laws

September 2, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that David John Melilli (Melilli), formerly employed by Capstone Financial LLC, has been subject to at least three customer complaints during his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Melilli’s customer complaints allege that Melilli engaged in unauthorized trading and recommended unsuitable investments.

In April 2021, FINRA made a preliminary determination to recommend that disciplinary action be brought against Melilli for various allegations. These include unsuitable and excessive trading in customer accounts, using discretion without written authorization in customer accounts, unauthorized trading in the account of a deceased customer, forging customer signatures on account documents and causing member firm to maintain inaccurate books and records, sending written communication entitled “Writing Covered Calls” to customer without obtaining prior approval from member firm and use of a misleading communication with a customer, using text messages to conduct securities related business in violation of applicable firm policies and causing firms to fail to maintain accurate books and records, and opening and maintaining multiple outside securities accounts without the prior consent of member firms. Investigation is pending concerning these allegations.

In September 2020, a customer complained that Melilli violated the securities laws by alleging that Melilli engaged in authorized trading. The claim alleges $5,000 in damages and is currently pending.

Also in September 2020, a customer complained that Melilli violated the securities laws by alleging that Melilli made risky investments that were not fully understood and that management fees may not have been assessed correctly. The claim was denied.

Broker Ronald Richer Barred By Securities Regulator

September 1, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Ronald G. Richer (Richer), most recently associated with Garden State Securities, Inc. (Garden State Securities) has been subject to at least four customer complaints and three regulatory actions during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Richer’s customer complaints alleges that Richer recommended unsuitable investments in various investments among other allegations of misconduct relating to the handling of their accounts, including failure to supervise and unauthorized trading.

In July 2020, Richer was named a respondent in a FINRA arbitration complaint alleging that he borrowed $15,000 from a senior customer without providing prior notice to, and receiving written approval from, his member firm. This event led to his subsequent bar from the industry.

In December 2019, a customer complained that Richer violated the securities laws by alleging that Richer engaged in unauthorized trading. The damage amount requested was $21,000. The claim was denied.

In March 2018, a customer complained that Richer violated the securities laws by alleging that Richer engaged in unsuitable investment advice, and breach of fiduciary responsibility. The damage amount requested was $26,473. The claim settled in the amount of $16,300.

In June 2016, a customer complained that Richer violated the securities laws by alleging that Richer engaged in unauthorized trading, negligence, and failure to supervise. The damage amount requested was $150,000. The claim settled in the amount of $30,000.

Christopher Miller Subject to Investment Customer Complaint

September 1, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Christopher Miller (Miller), currently employed by Emerson Equity LLC (Emerson Equity) has been subject to at least two customer complaints during the course of his career. One of those complaints appears to have been expunged through FINRA’s notoriously flawed expungement process. According to records kept by The Financial Industry Regulatory Authority (FINRA), Mr. Miller’s customer complaints alleges that Mr. Miller recommended unsuitable investments in various investments including allegations involving private placements and real estate securities, among other allegations of misconduct relating to the handling of their accounts.

In February 2020, a customer complained that Mr. Miller violated the securities laws by alleging that Mr. Miller engaged in financial elder abuse, involving a 1031 exchange investment. The claim alleges $292,000 in damages. This complaint was subsequently expunged from Mr. Miller’s record.

In October 2019, a customer complained that Mr. Miller violated the securities laws by alleging that Mr. Miller engaged in the sale of unsuitable securities, breach of fiduciary duty, and financial elder abuse. The claim settled in the amount of $57,000.

Advisor Frank Venturelli Suspended By Securities Regulator

August 31, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Frank Venturelli has been subject to at least one customer complaint and two regulatory sanctions during his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Venturelli’s customer complaint alleges that Venturelli engaged in unauthorized trading and recommended unsuitable investments. While the two regulatory actions brought against him state that he consented to sanctions of engaging in unsuitable trading in customers’ accounts and committed fraud.

In December 2020, the New Jersey Bureau of Securities initiated disciplinary action against Venturelli. They alleged that Venturelli engaged in an act, practice, or course of business which would operate as fraud or deceit upon another person. BrokerCheck records state that Venturelli engaged in a pattern of excessive, unsuitable, and unauthorized trading activity in the accounts of certain customers. Civil and administrative penalties in the amount of $120,000 were issued against Venturelli’s employer, First Standard Financial Company LLC.

In June 2019, FINRA initiated disciplinary action against Venturelli. They allege that Venturelli engaged in quantitatively unsuitable trading in customers’ accounts. The findings stated that Venturelli recommended the trading in customers’ accounts, and they followed his recommendations. These recommendations were excessive, unsuitable given the customers’ investment profiles, and were such that it was virtually possible for any customers to earn a profit. Venturelli’s trading of the accounts resulted in high turnover rates and significant losses. Venturelli’s customers suffered collective losses of $373,226 and paid $169,803 in commissions and fees. Venturelli neither admits nor denies these findings. As a result, FINRA suspended Venturelli in all capacities for eleven months and issued partial restitution, due to his limited ability to pay, in the amount of $30,000.

Michael Fahsholtz Subject to 12 Customer Complaints Related to Investment Advice

August 31, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Michael Anthony Fahsholtz (Fahsholtz), most recently employed by Stifel, Nicolaus & Company, Inc. (Stifel) has been subject to at least twelve customer complaints during the course of his career. Fahsholtz is no longer registered as a broker. According to records kept by The Financial Industry Regulatory Authority (FINRA), Fahsholtz’s customer complaints alleges that Fahsholtz recommended unsuitable investments in various investments including allegations involving debt-corporate securities, unit investment trusts, and variable annuities, among other allegations of misconduct relating to the handling of their accounts.

In September 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, and misrepresentations related to the risks of the recommended investments. The claim alleges $255,791 in damages and is currently pending.

In February 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, negligence, and breach of fiduciary duty. Additionally, the customer alleges that Fahsholtz violated the Securities Act of Washington and FINRA Rule 3110. The damage amount requested was $106,000. The claim settled in the amount of $25,000.

In December 2020, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz purchase inappropriate securities for the customer, including stocks, bonds, and UITs. The damage amount requested was $40,000. The claim settled in the amount of $7,500.

First Allied Advisor Terry Anderson Terminated for Misconduct

August 30, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) that financial advisor Terry Morris Anderson (Anderson) was terminated by his employer and has been subject to at least six customer complaints during the course of his career. Mr. Anderson was most recently associated with First Allied Securities, Inc. (First Allied Securities). According to records kept by FINRA, Mr. Anderson’s customer complaints alleges Mr. Anderson recommended unsuitable investments in various investments. Unsuitable investment allegations involving oil & gas securities, private placements, and other alternative investments, among other allegations of misconduct relating to the handling of their accounts.

In March 2020, a customer complained that Mr. Anderson violated the securities laws by alleging that Mr. Anderson failed to invest the customer’s money. The claim settled in the amount of $8,000.

In September 2010, a customer complained that Mr. Anderson violated the securities laws by alleging that Mr. Anderson engaged in breach of fiduciary duty, and negligence, resulting in losses. The claim settled in the amount of $27,468.41.

In July 2010, a customer complained that Mr. Anderson violated the securities laws by alleging that Mr. Anderson engaged in negligence, breach of fiduciary duty, breach of contract, misrepresentation, and unsuitability. The claim settled in the amount of $626,661.98.

In April 2010, a customer complained that Mr. Anderson violated the securities laws by alleging that Mr. Anderson engaged in negligence, breach of fiduciary duty, misrepresentation, and unsuitability. The claim settled in the amount of $278,516.44.

Rodrigue Lors Has Multiple Customer Complaints

August 30, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Rodrigue Lors (Lors), currently employed by Wilmington Capital Securities, LLC (Wilmington Capital Securities) has been subject to at least seven customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Lors’ customer complaints alleges that Lors recommended unsuitable investments in various investments including allegations involving private placement securities among other allegations of misconduct relating to the handling of their accounts.

In September 2021, a customer complained that Lors violated the securities laws by alleging that Lors engaged in unsuitability. The claim alleges $200,000 in damages and is currently pending.

In April 2021, a customer complained that Lors violated the securities laws by alleging that Lors engaged in unsuitable investment advice, common law fraud, breach of contract, and breach of fiduciary duty. The claim is currently pending.

In July 2020, a customer complained that Lors violated the securities laws by alleging that Lors engaged in unsuitability. The damage amount requested was $100,000. The claim settled in the amount of $20,000.