Did You Lose Money Due to Energy Sector Losses with Former Oppenheimer & Co. Inc. Broker Luigi Mancusi?
Posted on Tuesday, November 21st, 2017 at 11:30 am
Erez Law is currently investigating former Oppenheimer & Co. Inc. broker Luigi Mancusi (Lou Mancusi) (CRD# 2193040) regarding unauthorized trades in customer accounts. Mancusi has been registered David A. Noyes & Company in Lake Forest, Illinois since 2015. Previously, he was registered with Oppenheimer & Co. Inc. in Lake Forest, Illinois from 2012 to 2015.
In October 2017, FINRA suspended Mancusi for two months and sanctioned him to $10,000 in civil and administrative penalties and fines after he consented to the sanctions and to the entry of findings that he exercised discretion in 45 transactions in a customer’s accounts without prior written authorization from the customer or his member firm. According to the findings, Mancusi did not execute discretionary trades before the end of a business day on which time and price discretion had been given. FINRA also found that Mancusi executed three transactions in another customer’s account without prior authorization when the customer was out of the country and could not be reached to approve the sale of a security. Mancusi sold the security and used the proceeds to purchase two other securities in the customer’s account, which caused the customer to incur fees and commissions totaling $2,966.97.
Mancusi has been the subject of four customer complaints between 2002 and 2015, according to his CRD report:
September 2019. “Client alleges Variable Universal Life Insurance policy was misrepresented as paid up. Policy now requires additional premium to avoid lapsing.” The customer is seeking $90,000 in damages in this pending customer complaint.
November 2017. “Claimant alleges that claimant was placed in unsuitable investments for their age and risk tolerance, that said investments were unauthorized and that the FA churned the account. From 10/1/2012 to 12/31/2015.” The case was settled for $25,000.
July 2015. “Client’s attorney alleges unauthorized transactions took place in the client’s accounts. No time period specified, but accounts were open from November 2012 through November 2014.” The customer sought $250,000 in damages and the case was settled for $60,000.
July 2013. “On July 22, 2013 firm received notice of arbitration filing by former clients alleging fraudulent and improper activities by former agent Luigi Mancusi. The clients were advised by Mr. Mancusi from May 2005 – March 2012. The claim alleges that Mr. Mancusi recommended investments which were “Completely unsuitable and reckless in disregard of their age, risk tolerance, and income needs.” the clients request relief alleging violations of the Illinois securities act of 1953, breach of fiduciary duty, negligence, negligent (sp) misrepresentation, failure to supervise/negligent supervision, and respondent (sp) superior.” The customer sought $322,000 in damages and the case was settled for $50,000.
October 2009. “Client as trustee opened 2 brokerage accounts with Mr. Mancusi in July 2007. Between July 2007 and October 2008, Mr. Mancusi sold client a series of mutual fund and unit investment trusts. Client alleges the following: 1. That the UITs sold were misrepresented – claiming Mr. Mancusi represented that UITs were similar to bonds and were safe and liquid investments. Client further alleges that Mr. Mancusi represented that these UIT recommendations would guarantee a 9% annual return and did not disclose the risks associated with these investments. 2. The UIT investments were not consistent with client goals, age, risk tolerance, and objectives. 3. Unauthorized purchases of 2 additional UITs in November 2007. Client represents that investment losses and lost income are the result of the actions noted above and the client is seeking damages in the amount of no less than $250,000.” The case was settled for $80,000.
September 2002. “July 2001 client met with broker at northern trust bank in lake forest. Customer wanted to buy insurance annuity for daughter. Customer alleges she instructed broker to purchase fixed annuity, similar to existing policy for other daughter. Customer also alleges she never received a copy of the annuity contract. In July 2002, customer received statement and noticed account value had decreased. Concerned, the customer contacted the broker who indicated the account value had decreased due to market fluctuations. Customer alleges she repeatedly asked if annuity was the same as other daughters. The broker believed it was. The client was sold a variable annuity.” The case was settled for $30,000.
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, Oppenheimer & Co. Inc. may be liable for investment or other losses suffered by Mancusi’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.