Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that FINRA’s Department of Enforcement has brought disciplinary proceedings against broker/advisor Steven Robert Luftschein (CRD # 2690117). The proceeding was brought during the course of an investigation into various securities industry sales practice violations. A Complaint filed by FINRA on May 13, 2020 alleges Mr. Luftschein violated various securities laws and rules of the securities industry by engaging in excessive trading (i.e. “Churning”), unauthorized trading and unsuitable trading in the accounts of three customers. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Luftschein.
Registration Background for Steven Robert Luftschein
Mr. Luftschein first became registered in the securities industry in 1995. He was most recently registered with Huntington, NY based Joseph Stone Capital L.L.C. (CRD # 159744). His prior registrations include Aegis Capital Corp. (CRD #15007) from June 2013 to October 2016 and John Thomas Financial (CRD # 40982) from October 2012 to June 2013.
FINRA’s Allegations against Steven Robert Luftschein
According to FINRA’s May 13, 2020 Complaint against Mr. Luftschein, between July 2014 and June 2016, while registered with Melville, NY based Aegis Capital Corp, Mr. Luftschein is alleged to have engaged in a pattern of excessive, unauthorized and unsuitable trading. Specifically, the Complaint makes the following allegations:
- “Steven Robert Luftschein, while associated with Aegis Capital Corp. (“Aegis” or the Firm), a FINRA-registered broker-dealer, churned and excessively traded the accounts of three of his Firm customers, Customers A, B and C (Collectively, the “Customers”)”;
- “[Mr.] Luftschein executed approximately 430 trades in the Customers’ accounts…”;
- “[Mr.] Luftschein’s churning and excessive trading was unsuitable and caused combined losses of more than $261,000 in the Customers’ accounts”;
- “By churning and excessively trading the Customers’ accounts, [Mr.] Luftschein willfully violated section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder, and also violated FINRA Rules 2111, 2020 and 2010”;
- “…[Mr.] Luftschein executed 88 trades with a total principal value of approximately $3.1 million in the three Customers’ accounts without the Customers’ authorization”; and
- “By engaging in unauthorized trading in the Customers’ accounts [Mr.] Luftschein violated FINRA Rule 2010.”
Steven Robert Luftschein has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Luftschein reveals he has a history of at least 13 customer complaints and/or arbitrations including but not limited to the following:
- On May 9, 2018 a customer initiated an arbitration in which Mr. Luftschein was named for actions that occurred while he was associated with Aegis. The customer alleged damages in the amount of $150,000.00 for negligence, unauthorized trading, churning, unsuitability, breach of contract and breach of fiduciary duty. The arbitration was settled on January 22, 2019 in the amount of $132,500.00.
- On January 31, 2018 a customer initiated an arbitration in which Mr. Luftschein was named for actions that occurred while he was associated with Aegis. The customer alleged damages in the amount of $1,461,217.00 for unauthorized trading and unsuitable investment recommendations. The arbitration was settled on May 30, 2018 in the amount of $569,962.38.
- On April 28, 2017 a customer initiated an arbitration in which Mr. Luftschein was named for actions that occurred while he was associated with Aegis. The customer alleged damages in the amount of $269,131.00 for unsuitable investment recommendations, unauthorized trading, excessive trading, misrepresentations and omissions, breach of contract and breach of fiduciary duty. The arbitration was settled on March 16, 2018 in the amount of $100,000.00.
- On January 21, 2017 a customer initiated an arbitration in which Mr. Luftschein was named for actions that occurred while he was associated with Paulson Investment Company. The customer alleged damages in the amount of $2,172,561.00 for unsuitable investment recommendations, negligence, negligent supervision, federal securities laws violations, Georgia Blue Sky law violations, control person liability, respondeat superior, breach of fiduciary duty and excessive trading. The arbitration was settled on April 30, 2018 in the amount of $800,000.00.
- On June 3, 2016 a customer initiated an arbitration in which Mr. Luftschein was named for actions that occurred while he was associated with Aegis. The customers alleged damages in the amount of $200,000.00 for unsuitable investment recommendations and the mishandling of their accounts. The arbitration was settled on October 13, 2016 in the amount of $782,000.00.
If you or someone you know has or had a brokerage account with Mr. Steven Robert Luftschein 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.
