First Standard Financial Company Tag Archives

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.

Philip Sparacino Barred By Regulator Over Excessive Trading

January 6, 2020 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Philip Sparacino (Sparacino), formerly associated with First Standard Financial Company LLC (First Standard), has been subject to at least three customer complaints, one employment termination for cause, two financial disclosures, and two regulatory matters during his career. The majority of the customer complaints against Sparacino concern allegations of high frequency trading activity also referred to as churning or excessive trading.

In November 2019 FINRA entered into a settlement with Sparacino where he consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA while investigating allegations that he engaged in unauthorized, excessive, and unsuitable trading while registered through his member firm. As a result Sparacino was barred from the financial industry.

In October 2019 First Standard terminated Sparacino due to a regulatory action brought by the state of New Jersey that resulted in revoking Sparacino’s license in that state. The state of New Jersey found that Sparacino made untrue statements and omitted information and engaged in practices and a course of business which operated as a fraud or deceit and was otherwise engaged in dishonest and unethical business practices in the sale of securities resulting in a $250,000 fine and a revocation of license. The state alleged that since at least June 2019, Sparacino has engaged in a pattern of unauthorized, excessive, unsuitable, and fraudulent trading activity on behalf of customers of First Standard following the departure of many of First Standard’s agents. Sparacino had access to dozens of newly inherited customer accounts which he used as a vehicle to generate exorbitant commissions at the customers’ expense.

Advisor James Schwartz Subject to Multiple Churning Claim

January 23, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker James Schwartz (Schwartz) has been subject to nine customer complaints, one tax lien, and one bankruptcy during his career. Schwartz is currently not registered but was previously employed by Joseph Gannar & Co. LLC (Joseph Gunnar). Many of the the customer complaints against Schwartz concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In October 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in breach of fiduciary duty, unsuitable investments, and negligence causing $32,871.30 in damages. The claim is currently pending.

In May 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in churning, unsuitable investments, unauthorized trading, and breach of fiduciary duty causing $150,000 in damages. The claim is currently pending.

In February 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in unsuitable investments and unauthorized trading causing $1,694,099 in damages. The claim is currently pending.

In addition, Schwartz has one financial disclosure concerning a tax lien for $15,667 and declared bankruptcy in June 2017. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

First Standard Financial Advisor Roy Failla Subject to Multiple Allegations of Excessive Trading

October 25, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Roy Failla (Failla) has been subject to three customer complaints. Failla is currently employed by First Standard Financial Company LLC (First Standard Financial). Many of the customer complaints against Failla concern allegations of high frequency trading activity also referred to as excessive trading, churning, unauthorized trading, and unsuitable investments.

In May 2018 a customer filed a complaint alleging unsuitable and unauthorized trading. The claim alleges $1,500,000 in damages and is currently pending.

In May 2010 a customer filed a complaint alleging churning, unsuitable trades, and misrepresentations claiming $417,000 in damages. The complaint was settled for $40,000.

In February 2010 a client filed a complaint alleging unauthorized trading, fraud, breach of fiduciary duty, and excessive trading and claimed $299,817 in damages. The claim was settled for $75,000.

Gana LLP Investigation: Broker James Connors

July 28, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker James Connors (Connors) has been the subject of at least two customer complaints. The customer complaints against Connors allege a number of securities law violations including that the broker made unsuitable investments and engaged in churning (excessive trading) among other claims.

Connors entered the securities industry in 1995. From August 2006 through October 2009, Connors was associated with J.P. Turner & Company, L.L.C. (JP Turner). Thereafter from October 2009, until November 2010, Connors was registered with Brookstone Securities, Inc. Brookstone Securities was thereafter expelled from the industry by FINRA. From there, Connors was associated with Meyers Associates, L.P. Finally, Connors became associated with First Standard Financial Company LLC.

Some of these firms Connors has been associated with have been known to house troublesome brokers. For instance, Meyers Associates has an unusually high number of brokers with complaints on their records. According to FINRA, approximately twelve percent of registered representatives have some form of disclosure on their record. However, as we have previously reported, forty seven out of seventy five, or nearly sixty-three percent of the brokers employed by Meyers Associates, have a marked-up history as revealed by BrokerCheck. Even more disturbing is the fact that of those forty seven brokers have on average of 4.5 disclosure events per broker.