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Jason Collichio’s License Restricted in Two States

Feb 22, 2022 FINRA Fine

Jason Collichio (CRD #:4727199), a broker registered with Landolt Securities, is involved in a regulatory disclosure, according to his BrokerCheck record, accessed on February 12, 2022. 

On December 21, 2021, the Massachusetts Securities Division decided to place Jason Collichio's registration as a broker-dealer agent in Massachusetts under a five-year heightened supervision plan.

The decision was made following a review of Jason Collichio's disclosure history. Heightened supervision means a supervisor will have to review Jason Collichio's transactions and recommendations on a regular basis.

Colorado Division of Securities License Suspension

On September 22, 2021, Jason Collichio consented to a two-year suspension from acting in any supervisory, managerial, or principal capacity for any agent licensed in the State of Colorado or any account of a Colorado resident.

FINRA Fine and Suspension

On December 31, 2021, Jason Collichio was the subject of a FINRA fine and suspension after he allegedly failed to supervise two former registered representatives at Worden Capital Management, who allegedly engaged in churning.

What is Excessive Trading?

Churning is another term for excessive trading, which occurs when brokers execute trades simply for the sake of generating commissions for themselves, without any financial benefit for their investors. It is prohibited under FINRA Rule 2111, under "quantitative suitability." This means that the number of trades, as well as the type of trades, must fit the customer's needs. 

The alleged trading of the accounts by the two Worden Capital Management representatives resulted in high turnover rates and cost-to-equity ratios. 

  • The turnover rate represents the number of times that a portfolio of securities is exchanged for another portfolio of securities. 
  • The cost-to-equity ratio measures the amount an account has to appreciate just to cover the commissions and other expenses. 

The findings state that Jason Collichio was aware of multiple red flags of excessive trading. The two WCM representatives allegedly churned and excessively traded in eleven customers' accounts. The eleven customers allegedly realized losses of $3,005,469 from this trading while paying $1,469,761 in commissions.

What is FINRA's Failure to Supervise Rule?

FINRA Rule 3110 requires that firms supervise their brokers and financial advisers. 

FINRA 3110 requires firms to maintain a supervisory system reasonably designed to comply with FINRA rules. It also requires that the firm designate a registered principle whose job it is to carry out supervisory responsibilities. The firm must make reasonable efforts to determine that all supervisory personnel are qualified, either by experience or training. This unethical conduct violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.

Sanctions

As part of the terms of the AWC, Jason Collicchio consented to:

  1. A three-month suspension from associating with any FINRA member in all capacities. 
  2. A $5,000 fine
  3. Attend and satisfactorily complete 20 hours of continuing education concerning supervisory responsibilities

You can read a copy of the AWC here.

Background Information

Jason Collichio has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination
  • Series 24 - General Securities Principal Examination

He is a registered broker in 36 states. 

Jason Collichio has also worked with Olympia Asset Management (CRD#:126331).

Kurta Law Can Help

If you have worked with Jason Collichio and have concerns about your investments, don't hesitate to contact us today 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 and 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.