Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker Christian Frank Lucchetto (CRD # 4648994) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into unsuitable excessive trading (“churning”) in a customer account.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Lucchetto.
Registration Background for Christian Lucchetto
Mr. Lucchetto first became registered in the securities industry in 2008. He is currently registered with Staten Island, NY based Arive Capital Markets (CRD # 8060). He has been registered with Arive since September 2019. His prior registrations include First Standard Financial Company LLC (CRD # 168340) from July 2016 to September 2019, Cape Securities Inc. (CRD # 7072) from October 2011 to July 2016 and Joseph Gunnar & Co. LLC (CRD # 24795) from April 2010 to July 2010.
FINRA’s Allegations against Christian Lucchetto
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 9, 2021, Mr. Lucchetto consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between January 2018 and May 2019, while he was registered through First Standard, [Mr.] Lucchetto excessively traded the account of one customer (Customer 1)…”;
- “[Mr.] Lucchetto exercised de facto control over Customer 1’s account”;
- “[Mr.] Lucchetto recommended frequent trading in Customer 1’s account, which resulted in an annualized turnover rate of 19.42 and an annualized cost-to-equity ratio of more than 71 percent—meaning Customer 1’s investments had to grow by more than 71 percent just to break even”;
- “[Mr.] Lucchetto’s recommendations resulted in the customer paying $30,454.86 in commissions during the relevant period”;
- “[Mr.] Lucchetto’s recommended trades also resulted in Customer 1’s account experiencing a realized loss of $64,402.09”
- “[Mr.] Lucchetto’s recommended securities transactions in Customer 1’s account were excessive and unsuitable given the customer’s investment profile” and
- By virtue of the above actions, Mr. Lucchetto violated FINRA Rule 2111, regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions Christian Lucchetto
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s January 9, 2021 AWC also indicates that Mr. Lucchetto consented to the following sanction(s):
- A three-month suspension from associating with any FINRA member in any capacity;
- A fine in the amount of $5,000.00; and
- Restitution of $30,454.86.
Christian Lucchetto has No History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Lucchetto reveals he has no history of customer complaints and/or customer initiated arbitrations.
If you or someone you know has or had a brokerage account with Christian Frank Lucchetto and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.