Soreide Law Group has filed a FINRA arbitration on behalf of our client (Claimant) against:
CRAFT CAPITAL MANAGEMENT LLC, and their registered representative,
WILLIAM J LODICO (BILLY LODICO, WILLIAM JOSEPH LODICO III, WILLIAM JOSEPH LODICO) (Respondents).
The Claimant lives in Georgia, and in February of 2025, CRAFT CAPITAL broker, WILLIAM J LODICO, allegedly cold called the Claimant telling him that he is an experienced options trader and could make him substantial profits. The cold calls persisted until the Claimant agreed to open an account with the Respondents. The Claimant transferred a large position he maintained into Craft Capital with the intention of allowing the Respondents to sell covered calls against the position to generate income. The lawsuit alleges WILLIAM J LODICO would sell a contract only to buy it back days later.
The lawsuit further alleges that the Respondents bought a string of positions of which the majority are down significantly, some over 50%, including but not limited to Upstart, Nakamoto, Reddit, and Iren. The lawsuit states the Claimant had to borrow the money on margin from his account to pay his tax bill due from selling his business. The Claimant, according to the lawsuit, was allegedly told he would be able to pay the tax bill with profits from gains. However, only losses materialized.
The lawsuit alleges the Claimant did not understand the fees in his accounts in the form of mark ups and mark downs and high margin interest. The lawsuit states that the Claimant repeatedly told WILLIAM J LODICO to make the best decisions for his accounts. The lawsuit alleges the Respondents acted in their own best financial interest and not their client. LODICO, allegedly did nothing to protect the downside of these high-risk volatile positions. LODICO never used stop losses or any hedging method.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, WILLIAM J LODICO has been in the securities industry for 9 years and has been listed with 7 firms. He has 3 disclosures on his FINRA CRD report. LODICO has been with CRAFT CAPITAL MANAGEMENT LLC of Tinton Falls, New Jersey since 2/28/2024.
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