Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, John LoPinto (CRD # 4563735) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive trading (churning) in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. LoPinto.
Registration Background for John LoPinto
Mr. LoPinto first became registered in the securities industry in 2002. He was most recently registered with New York, NY based Worden Capital Management LLC (CRD # 148366) from November 2016 to November 2019. His prior registrations include Legend Securities, Inc. (CRD # 44952) from August 2011 to November 2016, and J.P. Turner & Company, L.L.C. (CRD # 43177) from February 2010 to August 2011.
FINRA’s Allegations Against John LoPinto
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 10, 2022, Mr. LoPinto consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From November 2016 through September 2019, [Mr.] LoPinto engaged in quantitatively unsuitable trading in five customer accounts”;
- “[Mr.] LoPinto recommended high frequency trading in the five customer accounts”;
- “[Mr.] LoPinto’s customers routinely followed his recommendations and, as a result, [Mr.] LoPinto exercised de facto control over the five customers’ accounts”;
- [Mr.] LoPinto’s trading resulted in high turnover rates and cost-to-equity ratios as well as significant losses…”;
- [Mr.] LoPinto’s trading in these five customers’ accounts was excessive and unsuitable given the customers’ investment profiles”;
- “As a result of [Mr.] 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”; and
- By virtue of his actions, Mr. LoPinto violated FINRA Rule 2111 regarding suitability; and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Suspends John LoPinto from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s January 10, 2022 AWC also indicates that Mr. LoPinto consented to the following sanction(s):
- A nine-month suspension from association with any FINRA member in all capacities;
- A fine in the amount of $7,500.00; and
- Restitution in the amount of $135,333.00 plus interest.
John LoPinto Has A History of Securities Industry Customer Complaints
In addition to John LoPinto being suspended by FINRA from the securities industry regarding excessive trading (churning), FINRA BrokerCheck for Mr. LoPinto reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On December 18, 2017 a customer initiated a complaint against Mr. LoPinto regarding alleged actions that occurred while he was associated with Worden Capital Management LLC. The customer alleged churning. The customer further alleged damages in the amount of $8,878.00. On April 20, 2018 the complaint was settled in the amount of $5,000.00.
- On July 23, 2012 a customer-initiated arbitration was filed naming Mr. LoPinto as a respondent regarding alleged actions that occurred while he was associated with National Securities Corporation (CRD # 7569). The customer alleged negligence, breach of fiduciary duty, breach of contract, misrepresentation, and unsuitable and excessive trading. The customer further alleged damages in the amount of $4,000,000.00. On February 10, 2014 the arbitration was settled in the amount of $50,000.00 with Mr. LoPinto responsible for paying $20,000.00 of the settlement amount.
- On August 1, 2012 a customer-initiated arbitration was filed naming Mr. LoPinto as a respondent regarding alleged actions that occurred while he was associated with J.P. Turner & Company, L.L.C. The customer alleged negligence, breach of fiduciary duty by placing unsuitable trades and charging excessive mark ups and mark downs, breach of contract, fraud, and churning. The customer further alleged damages in the amount of $1,000,000.00. On September 9, 2013 the arbitration was settled in the amount of $240,000.00 with Mr. LoPinto responsible for paying $120,000.00 of the settlement amount.
If you or someone you know has or had a brokerage account with John Michael LoPinto 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.