John Michael LoPinto of New York New York a stockbroker formerly registered with Worden Capital Management and investment adviser representative of Keyport Venture Advisors LLC has been censured and fined $40,000.00 according to a Securities and Exchange Commission (SEC) Order containing findings that LoPinto made misrepresentations to investors concerning pooled investment vehicles. In the Matter of Keyport Venture Advisors LLC et al. Administrative Proceeding File No. 3-20029 (Sept. 18, 2020).
According to the Order, Keyport Fund was founded by LoPinto and his partner Robert R. Wilkos. The mission of the company was to identify, secure and direct pre-IPO shares in Keyport Fund. The regulator indicated that $1,500,000.00 had been raised from investors for this purpose between October of 2019 and July of 2020.
LoPinto misstated to Keyport Fund investors that the third series of Keyport Fund owned shares of its intended investment. It was not until July of 2020 that it actually secured an offer for shares. SEC determined that LoPinto’s misrepresentations were violative of Investment Advisers Act of 1940 Section 206(4) and Rule 206(4)-8.
LoPinto has been referenced in additional customer initiated investment related disputes containing allegations of his misconduct while employed by National Securities Corporation, JP Turner Company and Worden Capital Management. FINRA Public Disclosure reveals that a customer initiated investment related FINRA securities arbitration claim concerning LoPinto’s conduct was resolved for $50,000.00 in damages based upon accusations of breach of contract and breach of fiduciary duty by LoPinto while he was registered with National Securities Corporation. Trades were allegedly executed on an unsuitable and excessive basis. The claim also alleges negligence and fraud concerning private placements.
LoPinto is also the subject of a customer initiated investment related FINRA securities arbitration claim which was settled for $240,000.00 in damages supported by allegations that the customer’s account was churned and that the customer had been charged excessive markups and markdowns on securities. According to the claim, the customer was placed into unsuitable private placements and equities. The claim also alleges breach of contract by LoPinto while at JP Turner Company.
On April 20, 2018, another customer initiated investment related complaint involving LoPinto’s conduct was settled to resolve accusations of the stockbroker churning the customer’s Worden Capital Management account.
LoPinto was registered with Worden Capital Management between November 7, 2016 and November 4, 2019.