Rocco Roveccio of Red Bank New Jersey a stockbroker formerly associated with First Standard Financial Company LLC has been suspended by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity supported by allegations that the stockbroker neglected to comply with a customer initiated investment related arbitration award or otherwise confirm his compliance with the regulator. FINRA Case No. 17-03364 (Nov. 15, 2019).
This is the latest in a string of enforcement actions taken against Roveccio for his misconduct in the securities industry. On September 28, 2017, he was charged by Securities and Exchange Commission (SEC) in a Complaint alleging that he committed fraud. Securities and Exchange Commission v. William C. Gennity and Rocco Roveccio Civil Action No. 1: 17-cv-07424.
According to the Complaint, customers received recommendations from Roveccio and William C. Gennity to engage in frequent securities trades without the stockbrokers having an adequate foundation to believe it was appropriate. The customers’ accounts had allegedly been churned and subject of unauthorized trades by the stockbroker. SEC also contended that recommendations made by Roveccio were not suitable for customers given the low likelihood of customers making profits. The Complaint stated that customers were misled by Roveccio who bragged about his ability to outperform the market while omitting the drastic costs to customers through frequent trading. Customers sustained $683,038.00 in losses according to SEC.
On May 3, 2019, Roveccio was fined $160,000.00 and ordered to both disgorge ill-gotten gains and refrain from engaging in any conduct violative of federal securities laws or regulations founded on accusations that the stockbroker committed fraud in violation of Securities Exchange Act of 1934 Section 10(b) and SEC Rule 10b-5. Securities and Exchange Commission v. William C. Gennity and Rocco Roveccio Civil Action No. 1: 17-cv-07424.
On May 6, 2019, Roveccio was barred by SEC from being a stockbroker or an investment advisor or otherwise associating with securities broker dealers or investment advisories given the allegations referenced in the Complaint and the judgement entered against Roveccio. In the Matter of Rocco Roveccio Administrative Proceeding File No. 3-19160.
FINRA Public Disclosure indicates that Roveccio is the subject of six customer initiated investment related disputes pertaining to allegations of his bad business practices during the period in which the stockbroker had been employed by securities broker dealers including Alexander Capital LP, LCP Capital Corp, Brookstone Securities, GunnAllen Financial and First Standard Financial. On May 29, 2018, a customer filed an investment related arbitration claim pertaining to Roveccio’s conduct in which the customer requested $1,500,000.00 in damages supported by allegations that common or preferred stock transactions effected by the stockbroker failed to be suitable and that equities were traded without consent from the customer when Roveccio was employed by Alexander Capital LP and First Standard Financial. FINRA Arbitration No. 18-01980.
On July 8, 2019, a customer filed an investment related arbitration claim in reference to Roveccio’s conduct where the customer sought $26,000.00 in damages based upon accusations that trades effected when Roveccio was associated with First Standard Financial lacked the customer’s permission. According to the claim, common or preferred stock transactions were unsuitable and led the customer to experience unwarranted losses. FINRA Arbitration No. 19-01842.
Roveccio has been identified in a customer initiated investment related arbitration claim where the customer was awarded $45,995.28 in compensatory damages based on Roveccio being found liable on claims including that the customer’s account was churned. According to the FINRA Arbitration, over the counter equities trades were effected without the customer’s permission when the stockbroker was employed by Alexander Capital LP. FINRA Arbitration No. 17-03364 (July 10, 2019).
First Standard Financial has been terminated as of January 28, 2019.