FINRA Investigates Richard Ceffalio for Alleged Misrepresentations

Richard Ceffalio (CRD #: 2619565), a broker formerly registered with LPL Financial, has been investigated by FINRA, according to his BrokerCheck record, accessed on November 15, 2024. Keep reading to learn more about his alleged conduct as a broker.

FINRA Investigation

On October 2, 2024, FINRA made a preliminary determination to recommend disciplinary action against Richard Ceffalio, alleging that he borrowed money from a client without meeting the requirements of FINRA Rule 3240.

FINRA further alleged that Richard Ceffalio violated FINRA Rule 2010 by making misrepresentations concerning whether he had borrowed funds from a client on firm compliance questionnaires.

FINRA Rule 3240

FINRA Rule 3240 describes the limited circumstances under which brokers may borrow from or lend to clients, such as loans between immediate family members.

FINRA Rule 2010

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

Termination from LPL Financial

On May 31, 2024, Richard Ceffalio was fired from LPL Financial for allegedly soliciting a loan from a client without notifying the firm and receiving approval. He allegedly also submitted trade corrections containing an inaccurate basis for the correction.

Investor Disputes

Four pending disputes have been filed against Richard Ceffalio.

On September 23, 2024, multiple investors filed a dispute alleging Richard Ceffalio misrepresented the total value of their accounts and managed them unsuitably from 2012 to 2023.

On May 31, 2024, several investors filed a dispute alleging Richard Ceffalio recommended unsuitable investments.

In a dispute filed on May 28, 2024, several investors alleged that Richard Ceffalio forged their signatures on a line of credit agreement in March 2022 and misdirected the funds outside their control. They seek $3,530,379.93 in damages.

On July 21, 2023, multiple clients filed a dispute alleging that Richard Ceffalio forged documents.

FINRA Rule 2020

FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s charges, expenses, and fees.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which describes characteristics such as their risk tolerance, investing experience, tax status, and age.

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

FINRA Rule 2150

FINRA Rule 2150 forbids brokers from misusing investors’ funds.

Background Information

Richard Ceffalio has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 9 – General Securities Sales Supervisor – Options Module Examination

He previously worked for the following firms:

• LPL Financial (CRD#:6413)
• Wells Fargo Clearing Services (CRD#:19616)
• UBS Financial Services (CRD#:8174)
• Wachovia Securities (CRD#:19616)
• A. G. Edwards & Sons (CRD#:4)
• Citicorp Investment Services (CRD#:23988)

Kurta Law Can Help

If you worked with Richard Ceffalio 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.