Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker John Lopinto (Lopinto), previously associated with Worden Capital Management LLC, has at least 3 disclosable events. These events include one customer complaint, 2 regulatory events, alleging that Lopinto recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on January 10, 2022.
Without admitting or denying the findings, LoPinto consented to the sanctions and to the entry of findings that he excessively traded customers’ accounts. The findings stated that LoPinto engaged in quantitatively unsuitable trading in customer accounts. LoPinto recommended high frequency trading and his customers routinely followed his recommendations and, as a result, LoPinto exercised de facto control over the customer’s accounts. LoPinto’s trading was excessive and unsuitable given the customers’ investment profiles. As a result of LoPinto’s excessive trading, the customers suffered collective realized losses of $240,331 while paying total trading costs of $205,523, including commissions of $161,706. The findings also stated that LoPinto exercised discretion to effect trades in a customer’s account without prior written authorization. LoPinto charged the customer a total of $21,632 in commissions to place the trades. The customer did not provide written authorization for LoPinto to exercise discretion in the account and LoPinto’s member firm did not accept the account as a discretionary account.