John Michael Lopinto of New York, New York, a stockbroker registered with Worden Capital Management LLC has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity for nine months based upon allegations that Lopinto engaged in the excessive and unauthorized trading of his customer accounts. FINRA Enforcement (AWC) Case No. 2019060753503 (Jan. 10, 2022).
According to the AWC, from November 2016 through September 2019, Lopinto excessively traded the accounts of five customers during the time that he was associated with Worden Capital Management LLC.
Specifically, Lopinto’s trading caused high cost-to-equity ratios and high turnover rates. For example, From April 2018 to August 2019, Lopinto executed 77 trades in a customer’s account, resulting in an annualized cost-to-equity ratio of 138.3% and an annualized turnover rate of 34.11. As a result of Lopinto’s trades, the customer accumulated total trading costs of $40,932.00, which includes $28,290.00 in commissions and $37,822.00 in realized losses.
Additionally, from April 2018 through June 2019, Lopinto executed 53 trades in a customer’s account by using discretion without the firm accepting the account as discretionary and without the customer’s prior written authorization. Lopinto charged the customer $21,632.00 in commissions to execute the trades. As a result, Lopinto violated FINRA Rules 2010, 3260(b), and NASD Rule 2510(b).
This is not the first time that Lopinto has been the subject of a regulatory action concerning his conduct in the securities industry. FINRA Public Disclosure shows that Lopinto has been fined $40,000.00 by Securities and Exchange Commission (SEC) based upon allegations that Lopinto made misrepresentations. Adminstraive Proceeding No. 3-20029 (Sept. 18, 2020).
FINRA Public Disclosure shows that Lopinto is referenced in nine (9) other customer initiated investment related disputes concerning Lopinto’s conduct while associated with securities broker dealers, including J.P. Turner Company LLC, National Securities Corp., and Worden Capital Management LLC. On September 9, 2013, a customer initiated investment related complaint involving Lopinto’s conduct was settled for $240,000.00 in damages based upon allegations that Lopinto was negligent, churned the customer’s account, made unsuitable transactions, defrauded the customer, and otherwise breached his fiduciary duties in connection with the recommendation and sale of investments when Lopinto was associated with J.P. Turner Company LLC.
On February 10, 2014, a customer initiated investment related complaint involving Lopinto’s conduct seeking damages of $4 million was also settled involving allegations that Lopinto was negligent, breached his fiduciary duties, made misrepresentations, and engaged in the unsuitable and excessive transactions of the customer’s account while Lopinto was associated with National Securities Corp.
Lopinto is also referenced in a complaint that was settled on April 20, 2018 for $5,000.00 in damages based upon allegations that Lopinto churned the customer’s account concerning the recommendation and sale of common stocks and preferred stocks when Lopinto was associated with Worden Capital Management LLC.
John Lopinto was associated with Worden Capital Management LLC from November 7, 2016 to November 4, 2019.
