Richard Urciuoli Fined by the SEC
Richard Urciuoli (CRD #: 1239283), a previously registered broker with LPL Financial, has been fined by the Securities and Exchange Commission. This disclosure appears on his BrokerCheck record, accessed on October 31, 2023. Keep reading if you have questions about his alleged conduct.
On September 18, 2023, the SEC alleged that Richard Urciuoli, the sole owner and investment adviser of Summit Planning Group, held complex investments for extended periods that resulted in unnecessary losses for his clients. VXX is a futures-linked exchange-traded note that is designed to provide short-term exposure to a futures index derived from the Chicago Board Options Exchange Volatility Index.
The ETN came with a warning: “If you hold your ETNs as a long-term investment, it is likely that you will lose all or a substantial portion of your investment.” The SEC alleges that Richard Urciuoli did not review this important disclosure before purchasing VXX for his clients. He allegedly sold approximately half of the VXX positions 34 days later and the remaining shares 86 days later.
The client accounts holding VXX allegedly lost $443,809. Summit allegedly charged clients $8,476.36 in fees in connection with the VXX investments.
The SEC alleges Summit and Richard Urciuoli did not have a reasonable basis for buying and holding VXX for extended periods. The SEC further alleges that Summit did not implement written policies designed to ensure the firm understood the risks of these complex products. As a result, the SEC alleged he violated Rule (206)4-7 of the Investment Advisers Act.
Investment Advisers Act – Rule (206) 4-7
Rule 206(4)–7 under the Investment Advisers Act of 1940 (“Advisers Act”) requires each investment adviser registered with the Commission to (1) adopt and implement written policies and procedures reasonably designed to prevent violations of the Advisers Act and its rules, (2) review those compliance policies and procedures annually, and (3) designate a chief compliance officer who is responsible for administering the compliance policies and procedures.
Terms of the SEC Action
The SEC imposed a civil penalty of $100,000 and ordered Richard Urciuoli to return $8,476.36 to his clients.
There is also an employment separation on Richard Urciuoli’s record. On June 13, 2020, LPL Financial fired him following allegations that he did notify the firm of customer complaints in a timely manner.
Richard Urciuoli 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 Principal Examination
During his 35 years of experience, Richard Urciuoli has registered with three firms:
- LPL Financial (CRD #: 6413)
- Linsco Financial Group (CRD #: 524)
- MHA Financial Corp (CRD #: 7462)
Kurta Law Can Help
If you worked with Richard Urciuoli and have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.