Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Leonard Joseph Marzocco (CRD # 3106494) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into excessive and unsuitable trading (“churning“) in customer accounts. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Marzocco.
Registration Background for Leonard Joseph Marzocco
Mr. Marzocco first became registered in the securities industry in 2014 and was most recently registered with Nesconset, NY based Woodstock Financial Group, Inc. (CRD # 38095) from June 2019 to December 2019. His prior registrations include First Standard Financial Company LLC (CRD# 168340) from June 2017 to July 2019 and Spartan Capital Securities, LLC (CRD# 146251) from January 2017 to July 2017.
FINRA’s Allegations against Leonard Joseph Marzocco
FINRA’s investigation led to Mr. Marzocco entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on July 1, 2020. According to the AWC, Mr. Marzocco consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between November 2015 and December 2017 (the Relevant Period.), [Mr.] Marzocco excessively traded three customers’ accounts in violation of FINRA Rules 2111 and 2010”;
- “During the Relevant Period, [Mr.] Marzocco engaged in quantitatively unsuitable trading in the accounts of customers JMS, CR, and DG”;
- “[Mr.] Marzocco recommended the trading in the three customers’ accounts and they followed his recommendations. As a result, [Mr.] Marzocco exercised de facto control over the three customers’ accounts”;
- “[Mr.] Marzocco also recommended a significant number of trades using margin in the three customers’ accounts”;
- “[Mr.] Marzocco’s trading in the accounts of JMS, CR, and DG was excessive and unsuitable given the customers’ investment profiles”; and
- By virtue of the above, Mr. Marzocco violated FINRA Rule 2111 and FINRA Rule 2010.
FINRA Sanctions Leonard Joseph Marzocco
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s July 1, 2020 AWC also indicates that Mr. Marzocco consented to the following sanction:
- A suspension from association with any FINRA member firm in any and all capacities for a period of eleven months.
Leonard Joseph Marzocco has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Marzocco (page 19 -28) reveals he has a history of customer complaint(s)/arbitration(s) including but not necessarily limited to the following:
- On October 3, 2017 a customer initiated an arbitration naming Mr. Marzocco as a Respondent for acts that allegedly occurred while he was associated with Rockwell Global Capital LLC (CRD # 142485). The customer alleged unsuitability, churning & commission abuse, fraud, misrepresentation and breach of fiduciary duty resulting in damages in the amount of $82,699.00. The arbitration was settled on October 1, 2018 in the amount of $10,500.00. Mr. Marzocco was required to contribute 100% of the settlement amount.
- On May 20, 2005 a customer initiated an arbitration naming Mr. Marzocco as a Respondent for acts that allegedly occurred while he was associated with Ehrenkrantz King Nussbaum, Inc. (CRD # 113525). The customer, a law firm, alleged it was promised minimum returns on investments; trades were done on margin without agreement; negligence; breach of fiduciary duty; misrepresentation; and unsuitability. The customer alleged damages in the amount of $50,285.00. The arbitration was settled on October 1, 2018 in the amount of $25,000.00. Mr. Marzocco was required to contribute $12,500.00 to the settlement amount.
- On February 21, 2002 a customer initiated a complaint against Mr. Marzocco for acts that allegedly occurred while he was associated with Ladenburg Capital Management, Inc. (CRD # 14623). The customer alleged that Mr. Marzocco failed to completely execute the sell side of a day-trade. The customer alleged damages in the amount of $350,000.00. The complaint was settled on March 20, 2002 in the amount of $70,000.00. Mr. Marzocco was required to contribute 100% of the settlement amount.
If you or someone you know has or had a brokerage account with Mr. Leonard Joseph Marzocco 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.