Mario Charles Sclafani (CRD #4374097) Has Disclosures on FINRA BrokerCheck
Mario Charles Sclafani (CRD #4374097) has been the subject of customer complaints and other disclosures. According to Mario Sclafani’s FINRA BrokerCheck report, he has five disclosure events, including two customer disputes, two financial disclosures, and one judgment/lien disclosure. If you invested with Mario Charles Sclafani and you have concerns about his activity, keep reading.
BrokerCheck link: BrokerCheck
BrokerCheck report: BrokerCheck Report
Rule summary #1: FINRA Rule 2111 (Suitability)
FINRA Rule 2111 generally requires brokers to have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile (including factors like age, objectives, risk tolerance, liquidity needs, and time horizon).
Rule summary #2: FINRA Rule 2330 (Deferred Variable Annuities)
FINRA Rule 2330 establishes sales-practice standards for recommended purchases and exchanges of deferred variable annuities, including documentation and supervisory review requirements tied to variable annuity recommendations.
Investor disputes / customer complaints
Mario Sclafani’s FINRA BrokerCheck report reflects 2 customer dispute disclosures. Below are two examples:
Example 1 (Pending): Mario Sclafani FINRA BrokerCheck report reflects a pending customer complaint received on 12/02/2025, in which the customer alleges she was provided with the incorrect free look period on her annuity. The product type was Annuity-Variable and the alleged damages were $5,068.00. The employing firm reported for the event is LPL ENTERPRISE, LLC.
Example 2 (Withdrawn): Mario Sclafani FINRA BrokerCheck report reflects a customer dispute that was withdrawn with a status date of 05/15/2019. The allegations included mismanagement and churning of the account, with product types listed as Equity-OTC and Options. The alleged damages were $125,273.00, and the arbitration forum was FINRA (Case # 15-00484). The employing firm reported for the event is Legend Securities.
Financial disclosures
Mario Sclafani’s FINRA BrokerCheck report reflects 2 financial disclosures. Both are reported as compromises with a creditor and show a disposition of Satisfied/Released dated 08/15/2021.
Example 1: Mario Sclafani FINRA BrokerCheck report reflects a Compromise action dated 05/01/2020 involving the creditor Chase. The original amount owed was $1,015.84 and the terms reached were $547.00. The report lists the disposition as Satisfied/Released with a disposition date of 08/15/2021.
Example 2: Mario Sclafani FINRA BrokerCheck report reflects a second Compromise action dated 05/01/2020 involving the creditor Chase. The original amount owed was $3,133.24 and the terms reached were $1,687.14. The report lists the disposition as Satisfied/Released with a disposition date of 08/15/2021.
Judgment / lien
Mario Sclafani’s FINRA BrokerCheck report reflects 1 judgment/lien disclosure:
Example 1: Mario Sclafani FINRA BrokerCheck report reflects a Tax lien in the amount of $71,832.00, with the lien holder listed as the IRS. The lien was filed on 10/30/2013, is marked as outstanding, and lists the court as RECORDER OF DEEDS in New York, New York with docket/case number 01800877008. The broker statement indicates a payment plan is in place and payments are being made.
Why this matters to investors (Regulation Best Interest)
Regulation Best Interest (Reg BI) is a U.S. securities regulation designed to strengthen the standard of conduct that broker-dealers owe to retail investors when making recommendations about securities transactions or investment strategies. Adopted by the U.S. Securities and Exchange Commission and effective as of June 30, 2020, Reg BI aims to enhance investor protection while preserving investor access to brokerage products and services.
Reg BI requires broker-dealers and financial advisors to act in the best interest of the retail customer at the time a recommendation is made, and not to place their own financial or other interests ahead of the customer’s. This represents a higher standard than the historical “suitability” requirement, which only required that recommendations be suitable, not necessarily optimal or conflict-free.
Reg BI is built around four key obligations:
- Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and recommendations, including fees, scope of services, and conflicts of interest.
- Care Obligation – Recommendations must be made with reasonable diligence, care, and skill, considering costs, risks, and alternatives.
- Conflict of Interest Obligation – Firms must identify, disclose, and mitigate or eliminate conflicts, particularly those that create incentives to favor one product over another.
- Compliance Obligation – Firms must establish policies and procedures designed to ensure compliance with Reg BI as a whole.
Importantly, Reg BI applies at the recommendation level, not as a continuous duty like the fiduciary standard applicable to registered investment advisers. Still, it significantly narrows the gap by emphasizing cost considerations, conflict management, and investor-focused decision-making.
Overall, Regulation Best Interest seeks to promote transparency, improve the quality of investment recommendations, and reinforce trust between retail investors and broker-dealers in the U.S. securities markets.
Background information (from BrokerCheck)
Based on his BrokerCheck Report, Mario Sclafani reportedly:
Is currently employed by and registered with LPL ENTERPRISE, LLC (registered with the firm since 11/14/2024).
Was previously registered with firms that include PRUDENTIAL FINANCIAL PLANNING SERVICES and PRUCO SECURITIES, LLC.
Kurta Law Can Help
If you have worked with Mario Sclafani and you have concerns about his reported disclosures, Kurta Law may be able to help you understand your options.
Helpful resources: Unsuitable Investments | Stockbroker Fraud
To discuss your situation, you can contact Kurta Law at (877) 600-0098 or by email at info@kurtalawfirm.com.
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