Richard Aulicino Allegedly Engaged in Fraud and Unauthorized Trading

Richard Aulicino (CRD #: 1225947), a broker registered with Dawson Securities, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on October 1, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations 

On July 19, 2024, an investor alleged that Richard Aulicino engaged in fraud and misrepresentation. He also allegedly engaged in unauthorized trading and made unsuitable use of margin. The investor further alleges he made unsuitable recommendations and churned the investor account. 

The investor is seeking $300,000. 

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.” 

Unauthorized Trading

FINRA Rule 3260 limits discretionary trading by brokers to pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm. Discretionary trading that takes place in an account that has not been approved is unauthorized.

What is Margin Investing? 

Investing on margin is when an investor opens a margin account and borrows money from a brokerage firm in order to purchase more securities. Using borrowed money is called “leverage” and it increases the risk that the investor will lose money. Margin accounts may come with interest charges, significant broker fees, and the risk of a margin call. 

Margin calls happen when the broker needs more money in the account in order to cover the minimum margin requirement. If the investor does not deposit money in the margin account, the broker may liquidate securities in the investor’s account in order to cover the minimum. 

Utilizing margin is often unsuitable and investors should be made aware of the risks before purchasing securities on margin. 

Background Information 

Richard Aulicino 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 Representative Examination

He is a registered broker in 13 states and Puerto Rico. 

Richard Aulicino has registered with 16 firms. These are the five most recent: 

• Dawson James Securities (CRD #: 130645) 
• Viewtrade Securities (CRD #: 46987) 
• Divine Capital Markets (CRD #: 118212) 
• Sandgrain Securities (CRD #: 26004) 
• Sky Capital (CRD #: 114657) 

Kurta Law Can Help 

If you worked with Richard Aulicino and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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.