Joseph Tranchina Suspended by FINRA for Alleged Excessive Trading

Joseph Tranchina (CRD #: 6085344), a broker registered with Ceros Financial Services, has been suspended by FINRA, according to his BrokerCheck record, accessed on June 21, 2025. Keep reading to learn more about his alleged conduct as a broker.

FINRA Suspension

On May 8, 2025, Joseph Tranchina consented to the entry of findings that he allegedly recommended a series of excessive trades to two clients between January 2018 and March 2022.

According to a Letter of Acceptance, Waiver & Consent (AWC), these clients allegedly had investment objectives of speculation:

• Customer A: Joseph Tranchina allegedly recommended 43 trades that resulted in an annualized turnover rate of eight and an annualized cost-to-equity ratio of 32%. This allegedly generated $49,645 in commissions and led to $74,331 in realized losses.
• Customer B: Joseph Tranchina allegedly recommended 27 trades that resulted in a turnover rate of 21 and a cost-to-equity ratio of more than 90%. This trading allegedly generated $11,330 in commissions and led to $23,818 in realized losses.

When evaluating potentially excessive trading, a turnover rate of six or more and/or a cost-to-equity ratio over 20% are considered red flags.

Further, the AWC alleged that Joseph Tranchina’s trading recommendations were not in the best interest of Customer A and unsuitable for Customer B.

The AWC concluded that these allegations constituted violations of FINRA Rules 2111 and 2010 and Regulation Best Interest.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile. These profiles describe investors’ tax status, risk tolerance, age, and investment goals.

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Sanctions

Joseph Tranchina consented to the following sanctions:

• Five-month suspension from associating with FINRA members
• $5,000 fine
• Restitution of $60,975 plus interest

His suspension began on June 2, 2025, and will end on November 1, 2025. You can read a copy of the AWC here.

Background Information

Joseph Tranchina has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

Joseph Tranchina is a registered broker in 37 states and the District of Columbia.

He has also worked for the following firms:

• Spartan Capital Securities (CRD#:146251) 
• Worden Capital Management (CRD#:148366)
• Legend Securities (CRD#:44952) 

Kurta Law Can Help

If you worked with Joseph Tranchina and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.