Michael Christopher Venturino of Garden City, New York, a stockbroker registered with Aegis Capital Corp., is referenced in an enforcement action initiated by Financial Industry Regulatory Authority (FINRA) where the regulator is seeking sanctions against Venturino based upon allegations that Venturino committed fraud and made excessive and unsuitable transactions in Aegis Capital Corp customer accounts. FINRA Department of Enforcement Complaint No. 2021070337501 (August 22, 2022).
According to the Complaint, from July 2014 to June 2017, Venturino excessively traded and churned 12 accounts of 11 investors while he was associated with Aegis Capital Corp. During that period, Venturino allegedly had full control over the 12 accounts. The customers relied on Venturino to trade their accounts, and they regularly followed his recommendations.
Venturino is also accused of engaging in unauthorized trading. Due to Venturino’s allegedly frequent and excessive trading, compounded by the high trading costs, customers’ accounts contained annualized turnover rates between 8.39 and 49.61 and annualized cost to equity ratios between 34.67 percent and 164.75 percent. The customers sustained approximately $1,000,000.00 in total losses. The stockbroker allegedly made more than $325,00.00 in compensation from his trading in the 12 accounts.
Department of Enforcement alleges that Venturino violated Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and FINRA Rules 2010, 2020, and 2111.
FINRA Public Disclosure shows that Venturino is referenced in fifteen (15) customer initiated investment related disputes concerning Venturino’s activities while associated with securities broker dealers, including Aegis Capital Corp. On March 3, 2021, a customer filed an investment related FINRA securities arbitration claim involving Venturino’s conduct where the customer requested compensatory damages based upon accusations that Venturino breached a fiduciary duty, made misrepresentations and unsuitable transactions, and breached a contract in connection with the recommendation and sale of investments during the time that Venturino was associated with Aegis Capital Corp. FINRA Arbitration No. 21-00271.
On March 29, 2021, another customer initiated investment related FINRA securities arbitration claim involving Venturino’s activities was settled for $39,000.00 in damages based upon allegations that Venturino made unsuitable trades when Venturino was associated with Aegis Capital Corp. FINRA Arbitration No. 20-04146.
Venturino is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $175,000.00 in damages based upon accusations that Venturino breached a contract and made unsuitable recommendations when Venturino was associated with Aegis Capital Corp. FINRA Arbitration No. 20-01730 (June 16, 2021).
Venturino is referenced in a different customer initiated investment related FINRA securities arbitration claim that was settled for $235,000.00 in damages based upon alleged negligence, breach of contract, churning, breach of fiduciary duty, and unsuitable trading during the time that Venturino was associated with Spartan Capital Securities LLC and Aegis Capital Corp. FINRA Arbitration No. 20-01455 (September 2, 2021).
On April 6, 2022, another customer initiated investment related FINRA securities arbitration claim involving Venturino’s conduct was settled for $40,000.00 in damages based upon allegations that Venturino made misrepresentations, committed fraud, and churned the customer’s account in connection with the recommendation and sale of investments when Venturino was associated with Aegis Capital Corp. FINRA Arbitration No. 22-00002.
Venturino was associated with Aegis Capital Corp. from June 13, 2014, to July 28, 2017. Venturino has been registered with Spartan Capital Securities LLC since April 17, 2018.
