Investigation of Former Key Investment Services LLC Broker Dominic Tropiano Who Was Recently Barred by FINRA

Posted on Monday, July 29th, 2019 at 2:43 pm    

Key Investment Services LLC

Erez Law is interested in speaking with investors who may have suffered losses due to investments with former Key Investment Services LLC broker Dominic Tropiano (CRD# 4761462) regarding non-traditional exchange-traded funds (ETF) losses. Tropiano was registered with America Northcoast Securities, Inc. in Cleveland, Ohio from May to June 2016 and previously with Key Investment Services LLC in Chagrin Falls, Ohio from 2008 to 2015.

In May 2019, FINRA barred Tropiano after he” consented to the sanction and to the entry of findings that he recommended transactions involving non-traditional exchange-traded funds (ETFs) to customers, without having a reasonable basis to believe those transactions were suitable for anyone, due to his lack of understanding of the unique risks, terms and features of the products. The findings stated that Tropiano’s recommendations involving non-traditional ETFs were also unsuitable for those customers in light of their investment profiles, which included conservative investment objectives. The findings also stated that Tropiano caused non-traditional ETF transactions to be placed in customers’ securities accounts without the customers’ knowledge or consent, and in the absence of written or oral authorization for him to place such trades. The findings also included that Tropiano was not properly registered with FINRA while engaging in the securities business of a firm by soliciting the purchase and sale of non-traditional ETFs in the accounts of firm customers.” There was no restitution ordered, because Tropiano’s member firm paid a total of $1,526,500 to its customers for losses suffered as a result of the non-traditional ETF transactions solicited by Tropiano while at the firm.

Tropiano has been the subject of eight customer complaints between 2014 and 2017, one of which was denied, according to his CRD report. More recent complaints are regarding:

May 2017. “Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs made by another individual, including negligence, violations of FINRA rules, breach of fiduciary duty, unsuitability, unauthorized trading, and failure to supervise.” The customer is seeking $250,000 in damages and the case is currently pending.

April 2017. “Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of the Ohio Securities Act and FINRA rules, negligence, unsuitability, failure to supervise, unauthorized trading, breach of fiduciary duty, and breach of contract.” The customer is seeking $150,000 in damages and the case is currently pending.

January 2017. “Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of FINRA rules and recommendations, negligence, unsuitability, failure to supervise, and unauthorized trading.” The customer is seeking $100,000 in damages and the case is currently pending.

November 2016. “Client alleges the RR’s recommendations to purchase various mutual funds totaling $446,740 from 2014 to March 2015 were unsuitable.” The customer sought $120,000 in damages and the case was settled for $85,000.

August 2016. “Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of the Ohio Securities Act and FINRA rules, negligence, unsuitability, failure to supervise, unauthorized trading, breach of fiduciary duty, fraud, and breach of contract.”nThe customer is seeking $800,000 in damages and the case is currently pending.

August 2016. “Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including negligence, violations of FINRA rules, breach of fiduciary duty, unsuitability, unauthorized trading, and failure to supervise.” The customer is seeking $330,000 in damages and the case is currently pending.

August 2016. “Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of the Ohio Securities Act and FINRA rules, negligence, unsuitability, failure to supervise, unauthorized trading, breach of fiduciary duty, and breach of contract.” The customer is seeking $400,000 in damages and the case is currently pending.

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, Key Investment Services LLC may be liable for investment or other losses suffered by Tropiano’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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.

Disclaimer: Clients are responsible for costs. Contingency fee is calculated before deducting costs incurred in the case.