Christian Frank Lucchetto of Red Bank New Jersey a stockbroker formerly registered with First Standard Financial Company LLC has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he excessively traded in the account of a First Standard Financial Company customer. Letter of Acceptance Waiver and Consent No. 2020065035201 (Jan. 19, 2021).
According to the AWC, from January of 2018 to May of 2019, Lucchetto executed excessive trades in a 61-year-old customer’s account. The customer was told by Lucchetto to effect those trades and they routinely followed Lucchetto’s advice. FINRA determined that the customer’s account was controlled by Lucchetto for this reason.
The AWC stated that the customer’s account was exposed to Lucchetto’s frequent trading strategy. This produced an annual cost-to-equity ratio of 71 percent and an annual turnover rate of 19.42. These recommendations led the customer to realize $64,402.09 in losses while paying $30,454.86 in commissions. FINRA determined that the trades Lucchetto effected were excessive and had failed to align with the customer’s investment profile. The stockbroker’s unsuitable trading in this respect was violative of FINRA Rules 2010 and 2111.
Lucchetto’s registration with First Standard Financial Company was terminated on September 25, 2019. He has been registered with Arive Capital Markets since September 20, 2019.
