Former Worden Capital Management LLC Broker John LoPinto Stock Losses

Worden Capital Management LLC

Erez Law is currently investigating former Worden Capital Management LLC broker John LoPinto (CRD# 4563735) regarding common and preferred stock losses. John Lopinto has been registered with Worden Capital Management LLC in New York, New York from 2016 to 2019.

In September 2020, the Securities and Exchange Commission (SEC) brought cease-and-desist proceedings against Keyport Venture Advisors LLC, John LoPinto, and Robert Wilkos and ordered them to pay a $40,000 civil and administrative penalty and fine. According to the SEC, “these proceedings concern disclosure violations by unregistered investment adviser Keyport Advisors and its two principals, LoPinto and Wilkos, while selling interests to individual retail investors in Keyport Venture Partners LLC Fund (“Keyport Fund”), a pooled investment vehicle that sought to invest in shares and interests of pre-IPO companies. Respondents raised over $1.5 million from individual investors and successfully made investments in pre-IPO companies for various series in the Keyport Fund. A few months after the fund’s inception, LoPinto and Wilkos misrepresented to potential investors that one particular new series of the fund already held shares of its intended investment, a pre-IPO online rental marketplace (“Company A”). In reality, Respondents knew they were having difficulty locating shares of Company A for the new series, and they were not able to secure an offer until several months after investors had invested $198,000 in the new series.”

In January 2022, FINRA sanctioned John LoPinto to pay a $7,5000 civil and administrative penalty and fine as well as a $135,333 in restitution and suspended him for nine months. According to the Acceptance, Waiver & Consent (AWC), he consented to the sanctions and to the entry of findings that he excessively traded customers’ accounts. “The findings stated that LoPinto engaged in quantitatively unsuitable trading in customer accounts. LoPinto recommended high frequency trading and his customers routinely followed his recommendations and, as a result, LoPinto exercised de facto control over the customer’s accounts. LoPinto’s trading was excessive and unsuitable given the customers’ investment profiles. As a result of 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. The findings also stated that LoPinto exercised discretion to effect trades in a customer’s account without prior written authorization. LoPinto charged the customer a total of $21,632 in commissions to place the trades. The customer did not provide written authorization for LoPinto to exercise discretion in the account and LoPinto’s member firm did not accept the account as a discretionary account.”

John LoPinto Customer Complaints

John LoPinto has been the subject of four customer complaints between 2012 and 2021, according to his CRD report. The most recent complaints were regarding: 

January 2021. “Churning and quantitative suitability, and misrepresentation and unsuitability. The alleged activity occurred between April 2018 and October 2019.” The customer is seeking $89,887.74 in damages and the case is currently pending. The complaint was regarding equity OTC and common and preferred stocks and took place while he was registered with Worden Capital Management LLC.

December 2017. “Churning.” The customer sought $8,878 in damages and the case was settled for $5,000. The complaint was regarding common and preferred stocks and took place while he was registered with Worden Capital Management LLC.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Worden Capital Management LLC may be liable for investment or other losses suffered by John LoPinto’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.