Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Frank Venturelli (CRD # 6403468) was recently suspended from the securities industry by FINRA’s Department of Enforcement for excessive and unsuitable trading (“churning“) in customer accounts. The sanction occurred as a result of an investigation in which FINRA made a preliminary determination on October 14, 2019 to recommend the disciplinary action.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Venturelli.
Registration Background for Frank Venturelli
Mr. Venturelli first became registered in the securities industry in 2014 and was most recently registered with Bay Ridge, NY based Arrive Capital Markets (CRD # 8060) from September 2019 to December 2019. His prior registrations include First Standard Financial Company LLC (CRD# 168340) from April 2016 to September 2019 and First Standard Financial Company LLC (CRD# 168340) from November 2014 to March 2016.
FINRA’s Allegations against Frank Venturelli
FINRA’s investigation led to Mr. Venturelli entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on June 19, 2020. According to the AWC, Mr. Venturelli consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between July 2016 and November 2018 (the “Relevant Period”), [Mr.] Venturelli excessively traded three customers’ accounts in violation of FINRA Rules 2111 and 2010”;
- “During the Relevant Period, [Mr.]Venturelli engaged in quantitatively unsuitable trading in the accounts of customers AR, LK, and RK”;
- “[Mr.] Venturelli recommended the trading in the three customers’ accounts and they followed his recommendations. As a result, [Mr.] Ventureilli exercised de facto control over the three customers’ accounts”;
- “[Mr.] Venturelli’s trading in the accounts of AR, LK, and RK was excessive and unsuitable given the customers’ investment profiles, and it was virtually impossible for any of these customers to earn a profit”; and
- By virtue of the above, Mr. Venturelli violated FINRA Rule 2111 regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions Frank Venturelli
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s June 19, 2020 AWC also indicates that Mr. Venturelli consented to the following sanction:
- A suspension from association with any FINRA member firm in any and all capacities for a period of 11 months; and
- Partial restitution in the amount of $30,000.00.
Frank Venturelli has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Venturelli (page 15) reveals he has a history of at least one customer complaint/arbitration including but not necessarily limited to the following:
- On February 21, 2019 a customer initiated arbitration was filed naming Mr. Venturelli as a Respondent for acts that allegedly occurred while he was associated with First Standard Financial. The customer alleged Mr. Venturelli engaged in excessive and unsuitable trading resulting in damages in the amount of $50,000.00. The complaint is currently pending.
If you or someone you know has or had a brokerage account with Mr. Frank Venturelli 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.