National investment loss lawyers KlaymanToskes is continuing its investigation of financial advisor Todd Anthony Cirella (CRD# 2396336) of Laidlaw & Company, after the law firm filed numerous FINRA arbitration claims alleging Cirella unsuitably recommended investors illiquid alternative investments.
Investors that suffered losses with financial advisor Todd Cirella are encouraged to contact attorney Lawrence Klayman at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes has filed a FINRA arbitration claim (Case No. 25-01991) against Laidlaw & Company, Ltd. on behalf of an investor seeking to recover $350,000 in damages. According to the claim, the customer was advised by Laidlaw and its brokers, Todd Anthony Cirella (CRD# 2396336) and Jason Anthony Russo (CRD# 2588652) to engage in aggressive margin trading while simultaneously investing heavily in high-risk, illiquid alternative investments, despite having limited investment experience.
According to the claim filing, the alternative investments recommended to the customer included Red Zone Investments, Cutwater Capital Partners, and LPE Special Opportunities. These investments were allegedly represented as appropriate growth opportunities, but were in fact speculative, illiquid, and unsuitable, and now reportedly show no value on the investor’s account statements.
According to public regulatory records, in January 2023, Todd Anthony Cirella entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with FINRA. Under the AWC, FINRA imposed the following sanctions:
According to FINRA’s findings, between June 2020 and January 2021, Cirella recommended a series of transactions in a retail customer’s account that generated:
FINRA stated that this level of trading required the customer’s account to grow by more than 37% annually just to break even, concluding that the trading was excessive, unsuitable, and not in the customer’s best interest.
The investigation into Todd Cirella arose in connection with broader regulatory concerns at Laidlaw & Company. In the same FINRA enforcement action, another Laidlaw broker, Edward Scott Short (CRD# 2462752), entered into an AWC involving excessive trading and restitution exceeding $100,000. These actions raised concerns regarding supervisory failures at the firm level.
Broker-dealers are required to maintain and enforce supervisory systems reasonably designed to ensure compliance with securities laws, suitability obligations, and Regulation Best Interest. When firms fail to adequately supervise advisors, they may be held liable for resulting investor losses.
As an investor, there are a few signs that you should look out for if you believe you may have a claim against your financial advisor. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered losses with broker Todd Cirella, or have concerns regarding your investment portfolio at Laidlaw & Company, or with any other financial advisor or firm, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.