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Options for Clients of Former First Standard Financial Company LLC Broker Frank Venturelli Who Suffered Investment Losses

Posted on Monday, October 18th, 2021 at 7:04 pm    

First Standard Financial Company LLC

Were you the victim of former First Standard Financial Company LLC broker Frank Venturelli (CRD# 6403468)? Venturelli was registered with Arive Capital Markets in Bay Ridge, New York from September to December 2019 and with First Standard Financial Company LLC in Red Bank, New Jersey from 2016 to 2019. Previously, Venturelli was registered with First Standard Financial Company LLC in Red Bank, New Jersey from 2014 to 2016.

In December 2020, the New Jersey Bureau of Securities sanctioned Venturelli to pay $120,000 in civil and administrative penalties and fines after it was found that Venturelli made untrue statements and omitted the state. According to his CRD, “Venturelli engaged in an act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. Venturelli engaged in dishonest or unethical practices in the securities business. Venturelli is the subject of an order of a self-regulatory organization suspending him from a self-regulatory organization.” 

In June 2020, Venturelli was sanctioned to pay $30,000 in restitution and was suspended for 11 months. According to the Acceptance, Waiver & Consent (AWC), “Venturelli consented to the sanctions and to the entry of findings that he engaged in quantitatively unsuitable trading in customers’ accounts. The findings stated that Venturelli recommended the trading in the customers’ accounts, and they followed his recommendations. As a result, Venturelli exercised de facto control over the accounts. Venturelli’s trading of the accounts resulted in high turnover rates and cost-to-equity ratios as well as significant losses. Venturelli’s trading was excessive and unsuitable given the customers’ investment profiles, and it was virtually impossible for any of the customers to earn a profit. As a result of Venturelli’s excessive trading, the customers suffered collective losses of $373,226 and paid $169,803 in commissions and fees.”

Venturelli has been the subject of one customer complaint in 2019, according to his CRD report:

March 2019. “Excessive trading & unsuitable trades.” The customer is seeking $50,000 in damages and the case is currently pending. The complaint was regarding common and preferred stocks and took place while Venturelli was registered with First Standard Financial Company 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, First Standard Financial Company LLC may be liable for investment or other losses suffered by Venturelli’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.