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Robert Guidicipietro Suspended by FINRA For Allegedly Executing Excessive Trades

Feb 15, 2022 Excessive Trading

Robert Guidicipietro (CRD #: 1588069), a broker registered with Alexander Capital, was suspended by FINRA, according to his BrokerCheck record, accessed on January 25, 2022. 

Excessive Trading

According to an Acceptance, Waiver, and Consent agreement dated November 29, 2021, Robert Guidicipietro consented to the findings that he excessively and unsuitably traded one Customer's account in violation between January 2019 and November 2019 of FINRA Rules 2111 and 2010.

What is Excessive Trading?

Churning is another term for excessive trading, which occurs when brokers execute trades simply for the sake of generating commissions for themselves, without any financial benefit for their investors. It is prohibited under FINRA Rule 2111, under "quantitative suitability." Quantitative refers to the fact that the number of securities can be unsuitable as well as the number of securities. 

Robert Guidicipietro's alleged trading of his client's account resulted in high turnover rates and cost-to-equity ratios. 

  • The turnover rate represents the number of times that a portfolio of securities is exchanged for another portfolio of securities. 
  • The cost-to-equity ratio measures the amount an account has to appreciate just to cover the commissions and other expenses. 

For context, FINRA has stated that a turnover rate of six and an annualized cost-to-equity ratio above 20% indicates excessive trading. 

Robert Guidicipietro recommended that Customer A place 56 margin trades. Margin trades are particularly risky. 

This results in a cost-to-equity ratio of 34%, which means the Customer's investments had to grow by more than 34% just to break even. As a result of Robert Guidicipietro's unsuitable recommendations, Customer A allegedly realized a loss of approximately $35,000.

Sanctions

As part of the terms of the AWC, Robert Guidicipietro consented to 

  1. A four-month suspension from associating with any FINRA member in all capacities. 
  2. A $5,000 fine
  3. Restitution of $35,219.74 plus interest. 

You can read the full copy of the AWC here.

Background Information

Robert Guidicipietro has passed the following exams: 

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

He is a registered broker in four states.

He has also worked with the following firms:

  • Arive Capital Markets (CRD#:8060)
  • Aegis Capital Corp. (CRD#:15007)          
  • Obsidian Financial Group (CRD#:104255)
  • J.P. Turner & Company (CRD#:43177)
  • First Metropolitan Securities (CRD#:7594)         
  • State Capital Markets Corporation (CRD#:13685
  • Gruntal & Co. Incorporated (CRD#:372)

Kurta Law Can Help

If you have been victimized after working with Robert Guidicipietro, don't hesitate to contact us today at 877-600-0098 or 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 and 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.