Frank Venturelli Sanctioned By NJ Regulator, FINRA

Broker Frank Venturelli Ordered To Pay Fine By NJ Regulator

The New Jersey Bureau of Securities reported that it sanctioned securities broker Frank Venturelli (CRD#: 6403468, Bay Ridge, New Jersey). Evidently, he is also known by the name Frank Vaughn. Notably, the securities broker, who worked for FINRA-member firms First Standard Financial Company (2014 to 2019) and Arive Capital Markets (2019), is not allowed to register as a securities broker in NJ. Also, FINRA issued Venturelli a suspension and fine in 2019 to resolve allegations of unsuitable and excessive trading. Moreover, BrokerCheck shows that a client of Venturelli filed a dispute about him. Here’s more on those disclosures.

New Jersey Bureau Of Securities Denies Frank Venturelli’s Registration, Orders Him To Pay $120,000 Fine Amid Allegations Of Unsuitable Trading

Evidently, in the December 2020 regulatory action, New Jersey Bureau of Securities sanctioned Frank Venturelli to resolve allegations that he violated New Jersey securities laws on trading. The Order shows that from 2016 to 2019, Venturelli reportedly made unsuitable, excessive and unauthorized trades. Supposedly, the broker harmed First Standard Financial Company clients’ investment accounts.
Notably, the New Jersey regulator mentioned that Frank Venturelli made short-term trades in commission-based accounts. Purportedly, for each trade, Venturelli and First Standard Financial Company received compensation. Allegedly, the broker traded this sway to maximize commissions even though the transactions were unsuitable. Supposedly, he caused clients’ accounts to have high cost-to-equity ratios (17 to 166 percent) and annualized turnover rates (15 to 41). Purportedly, Venturelli made $129,876.65 off of his trading in five clients’ accounts.

FINRA Sanctions Venturelli For Making Unsuitable Trades In Client Accounts

Moreover, FINRA issued Frank Venturelli an 11-month suspension in June 2020 to resolve allegations that he made unsuitable recommendations to three clients in violation of FINRA rules. Notably, in FINRA’s AWC, the regulator claimed that Venturelli controlled client accounts, and his excessive trading made it hard for clients to earn a profit. Purportedly, clients lost $373,226 after paying $169,803 in fees and commissions. Evidently, the broker served the suspension from July 6, 2020 to June 5, 2021.

First Standard Financial Client Alleges Unsuitable, Excessive Trading By Frank Venturelli

Moreover, a client of First Standard Financial disputed Venturelli’s sales practices. In the March 2019 FINRA Arbitration Claim, the client first alleged that Venturelli excessively traded stocks. Secondly, the broker allegedly made trades which did not comport with the client’s suitability information. For this reason, the client asked First Standard Financial to pay $50,000 in damages. This matter is currently ongoing.

Losses By Investing With Frank Venturelli?

Apparently, securities broker Frank Venturelli denies allegations of sales practice violations that are referenced on FINRA BrokerCheck. Have you experienced investment losses by interacting with this broker? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered compensation for hundreds of US investors who have experienced losses because of their securities brokers and financial advisors.