Joseph Lianzo: FINRA Alleges Excessive Trades, Big Investor Losses
Joseph Lianzo (CRD #: 4516842), a broker registered with SW Financial, has been suspended by FINRA, according to his BrokerCheck record, accessed on October 12, 2021. FINRA alleges that Joseph Lianzo executed excessive trades in several customer accounts. This is a type of misconduct also known as “churning.”
FINRA Acceptance, Waiver, and Consent Agreement
On August 31, 2021, Joseph Lianzo entered into an Acceptance, Waiver, and Consent agreement in which he consented to the findings that he executed excessive trading. This allegedly resulted in investor losses and excessive commissions.
A turnover rate of more than six or a cost-to-equity ratio of more than 20% indicates excessive trading.
- The cost-to-equity ratio is also called the “break-even” ratio. It indicates how much of a return the account has to generate in order to make a profit.
- The turnover rate indicates how frequently the broker executed trades.
Customer A: Between March 2016 and March 2017, this investor’s account had an annualized turnover rate of 35 and an annualized cost-to-equity ratio of 45%. Customer A allegedly endured losses of $42,487 and paid $15,169 in commissions.
Customer A was not the only investor who allegedly lost money due to Joseph Lianzo’s excessive trading.
- Customer B had an annualized turnover rate of 15 and an annualized cost-to-equity ratio of 65%. The investor alleged losses of $95,570 and paid $22,975 in commissions.
- Customer C had an annualized turnover rate of 18 and a cost-to-equity ratio of 78%. They allegedly incurred losses of $112,173 and paid $51,781 in commissions.
The same AWC also alleged that Joseph Lianzo engaged in unauthorized trading.
Fine and Suspension
Joseph Lianzo has consented to an eight-month suspension. The AWC also states that Joseph Lianzo submitted a statement of financial condition and demonstrated his inability to pay a fine. In light of his financial status, FINRA did not impose a monetary sanction.
You can read a copy of the AWC here.
On September 19, 2018, Joseph Lianzo became the subject of a tax lien for $11,499.
Joseph Lianzo Background Information
Joseph Lianzo has passed the following exams:
- Series 63 Uniform Securities Agent State Law Examination
- Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
He is a registered broker in nine states.
Joseph Lianzo has worked with the following firms:
- Arive Capital Markets (CRD #: 8060)
- Laidlaw & Company (UK) (CRD #: 119037)
- Cape Securities (CRD #: 7072)
- Salomon Whitney (CRD #: 145012)
- P. Turner & Company (CRD #: 43177)
- New Castle Financial Group (CRD #: 102380)
- Newbridge Securities Corporation (CRD #: 104065)
- Harrison Securities (CRD #: 14103)
- Milestone Financial Services (CRD #: 43295)
Kurta Law Can Help
If you lost money after working with Joseph Lianzo, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.