David John Lomedico, of Melville, New York, a stockbroker formerly registered with Rockwell Global Capital LLC, has been fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to the customers. Letter of Acceptance, Waiver and Consent, No. 2013037843201 (Aug. 3, 2017).
According to the AWC, in 2011, Lomedico made investment recommendations to customer AH, a senior investor whose objectives for investing included capital appreciation. Apparently, Lomedico was previously responsible for assisting AH’s late husband, WH – an investor who maintained speculative investment objectives. Lomedico evidently failed to correspond with AH upon WH’s passing to determine whether AH’s objectives changed, and AH lacked any investment experience. Lomedico purportedly effected margin based short term trades in AH’s account despite the transactions having failed to conform to AH’s investment objectives. FINRA found that Lomedico’s conduct in that regard was violative of NASD Rule 2310.
Moreover, the AWC stated that Lomedico made faulty investment recommendations to another customer, MC – an experienced investor with a limited risk tolerance. Lomedico apparently recommended, between June of 2009 and May of 2010, that the customer invest in non-traditional exchange traded funds. The AWC revealed that the non-traditional exchange traded funds were meant for trading on a short-term basis; yet, MC held the investments through 2012. FINRA found that Lomedico’s conduct was violative of NASD FINRA Rule 2010 and NASD Conduct Rule 2310.
FINRA Public Disclosure reveals that Lomedico has been identified in six customer initiated investment related disputes containing allegations of his misconduct while employed with Rockwell Global Capital, LLC and American Capital Partners, LLC. Particularly, on January 16, 2013, a customer initiated investment related arbitration claim involving Lomedico’s conduct was settled for $10,000.00 in damages based upon allegations that he defrauded the customer, breached his contractual duties, breached his fiduciary duties and negligently handled the customer’s portfolio of private placement investments.
Furthermore, on September 7, 2012, a customer filed an investment related arbitration claim regarding Lomedico’s activities, in which the customer requested $25,000.00 in damages based upon allegations that Lomedico breached his contractual and fiduciary obligations to the customer, and committed fraud in regard to the customer’s promissory note transactions. Subsequently, on January 16, 2013, a customer initiated investment related arbitration claim involving Lomedico’s conduct was settled for $10,000.00 in damages supported by allegations that Lomedico failed to conduct reasonable due diligence on a private placement.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
