Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, Joseph Lianzo (CRD # 4516842) was recently suspended from the securities industry by the FINRA Department of Enforcement for excessive trading (churning) and unauthorized trading in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Lianzo.
Registration Background for Joseph Lianzo
Mr. Lianzo first became registered in the securities industry in 2002. He is currently registered with Melville, NY based SW Financial (CRD # 145012). His prior registrations include Laidlaw & Co. (UK) Ltd. (CRD # 119037) from September 2015 to April 2017 and Cape Securities Inc. (CRD # 7072) from August 2014 to September 2015.
FINRA’s Allegations Against Joseph Lianzo
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated August 31, 2021, Mr. Lianzo consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between March 2016 and November 2019, [Mr.] Lianzo excessively traded four customer’s accounts in violation of FINRA Rules 2111 and 2010. [Mr.] Lianzo also placed 13 unauthorized transactions in accounts of two of those customers, in violation of FINRA Rule 2010”;
- “During the relevant period [Mr.] Lianzo engaged in quantitatively unsuitable trading in the account of one customer at Laidlaw, Customer A, and the accounts of three customers at SW Financial, Customers B, C and D”;
- “[Mr.] Lianzo recommended the trading in the accounts for the four customers and they routinely followed his recommendations. As a result, [Mr.] Lianzo exercised de facto control over the four customers’ accounts”;
- “Between February 14, 2017 and March 16, 2017, while registered with Laidlaw, [Mr.] Lianzo placed seven trades in Customer A’s account without Customer A’s authorization, knowledge or consent”;
- “Between August 9, 2018 and October 31, 2018, while registered with SW Financial, [Mr.] Lianzo placed six trades in Customer B’s account without Customer B’s authorization, knowledge or consent”; and
- By virtue of his actions, Mr. Lianzo violated FINRA Rule 2111, regarding suitability and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Joseph Lianzo
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s August 31, 2021 AWC also indicates that Mr. Lianzo consented to the following sanction(s):
- An eight-month suspension from association with any FINRA member in all capacities.
Joseph Lianzo Has A History of Securities Industry Customer Complaints
In addition to the August 31, 2021 AWC showing Joseph Lianzo being suspended from the securities industry by FINRA for excessive trading (churning) and unauthorized trading in customer accounts, FINRA BrokerCheck for Jospeh Lianzo reveals he has a prior history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On April 3, 2018, a customer-initiated arbitration was filed naming Mr. Lianzo as a Respondent regarding alleged actions that occurred while he was associated with Salomon Whitney Financial. The customer alleged unsuitability, churning, negligence, unauthorized trading and breach of contract. The customer further alleged damages in the amount of $108,215.00. On June 26, 2019 the arbitration was settled in the amount of $14,999.00.
- On December 20, 2013, a customer-initiated arbitration was filed naming Mr. Lianzo as a Respondent regarding alleged actions that occurred while he was associated with J.P. Turner & Company LLC. The customer alleged churning, negligence, breach of contract and unauthorized trading, amongst other allegations. The customer further alleged damages in the amount of $197,500.00. On November 21, 2014 the arbitration was settled in the amount of $100,000.00.
If you or someone you know has or had a brokerage account with Joseph Lianzo and have concerns regarding losses in your investments or possible sales practice violations including fraud, churning or unsuitability, 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.