Leonard Joseph Marzocco (also known as Lenny Marzocco and Len Marzocco) of Nesconset New York a stockbroker formerly registered with Woodstock Financial Group has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Marzocco made unsuitable recommendations to a customer when he was registered with Woodstock Financial Group. Letter of Acceptance Waiver and Consent No. 2019061956601 (November 5, 2021).

According to the AWC, from June of 2019 to December of 2019, excessive and unsuitable trades were made by Marzocco in a customer’s account. The AWC states that the customer was advised to make 160 options transactions which involved buying call options with short-term expirations. The customer took Marzocco’s advice on all these trades but experienced losses.

FINRA indicated that trades resulted in the customer paying $27,078.00 in trading costs and commissions over six months, while the customer’s average equity stood at approximately $40,000.00. The AWC states that the customer’s account contained a 112 percent annualized cost-to-equity ratio, placing the customer in a position to have to generate 112 percent annually to avoid incurring a loss.

The regulator determined that Marzocco violated FINRA Rules 2010 and 2111 by providing unsuitable investment advice.

This is not the first time that Marzocco has been sanctioned by FINRA for suitability. He was suspended for 11 months from associating with any FINRA member in any capacity founded on findings that he made unsuitable recommendations while he was employed by Spartan Capital Securities LLC and First Standard Financial Company LLC. Letter of Acceptance Waiver and Consent No. 2017052466304 (July 1, 2020).

According to the AWC, between November of 2015 and December of 2017, three customers’ accounts were excessively traded. Those customers followed Marzocco’s recommendations which enabled him to have control over their accounts.

The first customer’s account contained an annualized cost-to-equity ratio of 179.29. They were charged $53,232.00 in fees and commissions and suffered $135,800.00 in losses. The second customer’s account contained a 76.86 percent annualized cost-to-equity ratio and a 39.30 annualized turnover rate, resulting in $24,542.00 in losses. The third customer’s account had a 54.44 percent cost-to-equity ratio and an annualized turnover rate of 37.88, resulting in $35,989.00 in losses. Marzocco violated FINRA Rules 2010 and 2111 for this reason.

Marzocco has been identified in seven customer initiated investment related disputes regarding accusations of his misconduct while employed by Rockwell Global, Ehrenkrantz King Nussbaum, Ladenburg Capital Management, Institutional Equity Corporation, and Spartan Capital Securities. FINRA Public Disclosure shows that a customer initiated investment related FINRA securities arbitration claim regarding Marzocco’s activities was settled for $25,000.00 in damages supported by allegations of unsuitable and misrepresented over-the-counter equities transactions. The claim also alleges breach of fiduciary duty and negligence.

On July 4, 2017, a different customer filed an investment related complaint involving Marzocco’s conduct. They sought compensatory damages based upon accusations that unauthorized trades were executed in their account when Marzocco was associated with Spartan Capital Securities.

Marzocco is also referenced in a customer initiated investment related FINRA securities arbitration claim that was resolved for $10,500.00 in damages founded on allegations that the customer’s account was churned and exposed to unsuitable over-the-counter equities trades and commission abuse. FINRA Arbitration No. 17-02508 (October 1, 2018). The claim also contains allegations of breach of fiduciary duty and fraud because of Marzocco at Rockwell Global.

Marzocco was registered with Spartan Capital Securities between January 30, 2017, and July 19, 2017, First Standard Financial Company between June 20, 2017, and July 16, 2019, and Woodstock Financial Group between June 21, 2019, and December 10, 2019.

Tags: , ,

Comments are closed.