Lon Charles Faccini Jr. of Coram, New York, a stockbroker registered with Arive Capital Markets, has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Faccini engaged in excessive and unsuitable trading and had inappropriately used margin in customer accounts. Letter of Acceptance, Waiver, and Consent No. 2018056483903 (February 16, 2023).
According to the AWC, between March of 2017 and January of 2019, Faccini engaged in excessive and unsuitable trading, which included his use of margin, in the accounts of his customers. FINRA stated that Faccini advised the customers to execute trades in their accounts, with most of the trades involving the use of margin for one customer and all trades involving margin for the other customer. Those customers regularly accepted Faccini’s advice.
Despite the average month-end equity in one customer’s account being approximately $116,900.00 over a period of 19 months, Faccini advised the customer to make purchases with a $2,410,300.00 total principal value, resulting in an annualized turnover rate of approximately 13. His unsuitable recommendations caused the customer to incur a loss of approximately $36,700.00. FINRA also stated that the trades recommended by Faccini resulted in the customer paying $55,389.00 in commissions and fees, along with an additional $12,997.00 in margin interest, totaling approximately $68,385.00.
The other customer’s account maintained an average month-end equity of approximately $26,856.00 over a sixteen month period; however, Faccini pushed for purchases with a $522,438.00 total principal value, leading to a 14.59 annualized turnover rate. Faccini’s unsuitable advice caused the other customer to suffer a loss of approximately $17,395.00 The trades recommended by Faccini caused that customer to pay commissions and fees of approximately $16,074.00 as well as an additional $2,696.00 in margin interest. Therefore, Faccini violated FINRA Rules 2010 and 2111.
FINRA Public Disclosure shows that Faccini is referenced in nine customer initiated investment related disputes concerning Faccini’s conduct while associated with securities broker dealers, including Liberty Partners Financial Services LLC. On October 14, 2016, a customer initiated investment related FINRA securities arbitration claim involving Faccini’s conduct resulted in the customer being awarded $42,983.00 in compensatory damages because Liberty Partners Financial Services LLC was held liable on the customer’s claims which included that the securities broker dealer breached its fiduciary duties, committed fraud, made misrepresentations and omissions of material fact, breached a contract, churned accounts, and made unsuitable recommendations. FINRA Arbitration No. 15-01451.
On February 12, 2017, another customer initiated investment related FINRA securities arbitration claim involving Faccini’s conduct was settled for $9,000.00 in damages based upon allegations that Faccini made unsuitable recommendations of over the counter equities when Faccini was associated with Cape Securities Inc. FINRA Arbitration No. 16-02112.
Faccini is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $36,000.00 in damages based upon allegations that Faccini was negligent and churned accounts in connection with the sale of stocks when Faccini was associated with Arive Capital Markets. FINRA Arbitration No. 20-02821 (November 30, 2020).
On May 21, 2021, a different customer initiated investment related FINRA securities arbitration claim involving Faccini’s conduct was settled for $115,000.00 in damages based upon allegations that Faccini engaged in excessive trading, made unsuitable recommendations, and churned accounts in connection with the sale of stocks when Faccini was associated with Arive Capital Markets. FINRA Arbitration No. 19-02196.
Faccini is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $453,406.47 in damages based upon allegations that Faccini made unsuitable recommendations and churned the customer’s stock holdings. FINRA Arbitration No. 22-02555 (November 22, 2022).
On March 22, 2023, a Cape Securities Inc. customer initiated investment related FINRA securities arbitration claim involving Faccini’s conduct was settled for $40,000.00 in damages based upon allegations that Faccini made misrepresentations of material fact and made unsuitable recommendations of stocks. FINRA Arbitration No. 18-03200.
Faccini’s registration with Cape Securities Inc. was terminated on June 23, 2016. Faccini’s registration with Arive Capital Markets was terminated on January 25, 2023.
