Chad Lombardi Facing Allegations of Excessive Trading

Chad Lombardi (CRD #: 2846847), a broker registered with Morgan Stanley, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on 22, 2024. Keep reading if you have questions concerning his alleged conduct. 

Excessive Trading Allegations 

On December 1, 2023, an investor alleged that Chad Lombardi executed an excessive number of trades. The dispute was denied, but investors should know that firms can deny disputes without an external review. Investors may be able to recover their losses after a denial by pursuing FINRA arbitration.

What is Excessive Trading?

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. Trades must be quantitatively suitable, meaning the number of trades must suit an investor’s needs. Each trade comes with a transaction fee, so too many transactions will result in excessive fees for the investor. Excessive trading is also known as “churning.” 

High Standards of Commercial Honor 

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of Finra Rule 2111 also violate this rule. 

Kurta Law Can Help 

If you have worked with Chad Lombardi and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.