Richard Russo Allegedly Facing Regulatory Action
Richard Russo (CRD #: 843283), a previously registered broker with Chelsea Financial Services, is the subject of a FINRA investigation. This is according to his BrokerCheck record, accessed on March 10, 2022.
On January 20, 2022, Richard Russo received a Wells Notice. These notices notify brokers that FINRA has made a preliminary determination to recommend disciplinary action. The disciplinary action is based on allegations that Richard Russo recommended unsuitable non-investment grade corporate bonds to two investors. He also allegedly exercised discretion in a customer’s accounts without authorization.
- According to FINRA Rule 2111, brokers must recommend suitable investments that fit their investors’ risk tolerance. Non-investment grade bonds are highly risky and will not suit most investors’ needs.
He also allegedly exercised discretion in customer accounts without prior written authorization.
- FINRA Rule 3260 states that brokers may only execute trades without the investor’s authorization in discretionary accounts. For non-discretionary accounts, investors must always seek their customer’s authorization.
On April 10, 2019, an investor alleged that Richard Russo recommended unsuitable investments that resulted in a loss of principal. The investor sought $225,000; the dispute settled for $57,500.
Richard Russo has passed the following exams:
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 3 National Commodity Futures Examination
- Series 5 Interest Rate Options Examination
- Series 7 General Securities Principal Examination
- Series 24 General Securities Principal Examination
- Series 8 General Securities Sales Supervisor Examination (Options Module & General Module)
- Series 4 Registered Options Principal Examination
He has worked for the following firms:
- Chelsea Financial Services (CRD #: 47770)
- IFS Securities (CRD #: 40375)
- Newport Coast Securities (CRD #: 16944)
- P. Turner & Company (CRD #: 43177)
- Brookstreet Securities Corporation (CRD #: 14667)
- Wedbush Morgan Securities (CRD #: 877)
- Prudential Securities Incorporation (CRD #: 7471)
- Dean Witter Reynolds (CRD #: 7556)
- Bateman Eichler, Hill, Richards, Incorporated (CRD #: 76)
Kurta Law Can Help
If you have worked with Richard Russo and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or email@example.com for a free consultation.
For nearly 20 years, Kurta Law has advocated on behalf of investors who have lost money following broker fraud or misconduct. Kurta Law is a nationally recognized law firm and exclusively represents investors on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Our attorneys will work tirelessly to restore your lost funds and get your financial future back on track.