Recover John LoPinto Worden Capital Investment Losses

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Updated on: January 14, 2022

John LoPinto Worden Capital investment losses? KlaymanToskes investigates ex-broker in light of FINRA suspension for excessively trading in customer accounts

National investment fraud lawyers KlaymanToskes is investigating former Worden Capital broker John LoPinto (CRD #4563735) (“John LoPinto Worden Capital Investigation”) in light of a recent FINRA disciplinary action regarding excessive trading.

What is a Letter of Acceptance, Waiver and Consent?

If FINRA’s Department of Enforcement has reason to believe a violation has occurred and the FINRA member does not dispute the violation, FINRA’s Department of Enforcement may prepare and request that the member:

  • execute a letter accepting a finding of violation
  • consent to the imposition of sanctions, and
  • agree to waive such member’s or associated person’s right to a hearing before a Hearing Panel or, if applicable, an Extended Hearing Panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted.

The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

John LoPinto Excessively Traded Customer Account

According to a FINRA Letter of Acceptance, Waiver and Consent, John LoPinto excessively traded five customers’ accounts. He allegedly excessively traded the accounts from November 2016 to September 2016.

In one customer account, the former Worden Capital broker effected 53 trades using discretion without the customer’s prior written authorization and without the firm accepting that the account as discretionary in writing.

What is Excessive Trading?

Brokerage firms and its financial advisors that excessively traded or “churn” a brokerage account are in violation securities industry rules and regulations.

In a FINRA arbitration claim of excessive trading or “churning” in a brokerage account, Claimants may allege a breach of fiduciary duty and conflict of interest for recommended investment strategies whose sole purpose is to enrich the brokerage firm and/or its financial advisor through excessive commissions, fees or costs. FINRA arbitrations will generally be successful in an excessive trading or “churning” claim if a customer can prove two case facts:

  1. The panel must conclude the financial advisor controlled or solicited the activity in the account; and
  2. The activity in the account was excessive based on the Claimant’s risk tolerance and investment objectives.

There are many factors an arbitration panel will consider to determine whether a financial advisor had control over the activity in a financial brokerage account. Several factors that may be considered include:

  • Client Level of Sophistication;
  • Unsuitable Investment Strategy Based on Objectives;
  • Prior Transactions of a Similar Nature and Frequency;
  • Client Trust and Reliance Upon a Financial Advisor;
  • Time Client Devotes to Independent Research;
  • Number of Transactions Solicited vs. Unsolicited;
  • Similar Positions with Different Brokerage Firms; and
  • Client Understanding of Investment Strategy.

KlaymanToskes, P.A. can help you determine whether an investment loss is the result of a financial brokerage firm and their financial advisor’s excessive trading or “churning of an investment account. If an investor suffers losses as a result of excessive trading or “churning they may be able recover their losses in a FINRA arbitration claim.

John LoPinto Suspended, Fined By FINRA for Excessive Trading

The former Worden Capital broker consented to sanctions for violating FINRA rules in this matter, which includes a 9-month suspension from associating with any FINRA member in all capacities, a $7,500 fine, and restitution of $135,333 plus interest.

FINRA BrokerCheck of John LoPinto

According to FINRA BrokerCheck, John LoPinto has 4 customer disputes, including 1 that is pending. One customer dispute, which was settled in 2018, alleged LoPinto of churning, and claimed $8,878 in damages.

LoPinto also is currently facing a FINRA customer dispute that was filed in January 2021. The allegations relate to churning and suitability, and allege over $89,000 in damages.

Securities & Exchange Commission’s 2020 Cease and Desist Regarding LoPinto, Keyport Venture Advisors

In 2020, the Securities & Exchange Commission charged New Jersey-based investment adviser Keyport Venture Advisors LLC and its two managing partners, John M. LoPinto and Robert R. Wilkos, with misleading investors while selling them interests in a pooled investment fund focused on pre-IPO companies.

LoPinto and Wilkos allegedly founded the Keyport Fund to invest in the shares of pre-IPO companies, and established Keyport Venture Advisors to manage the fund and to identify, secure, and direct pre-IPO investments in the fund.

The SEC order finds that starting in October 2019, LoPinto and his other managing partner solicited investors for various series of the fund focused on different pre-IPO companies, and in December 2019, they represented to potential investors that the third series of the fund already held shares of its intended investment, a pre-IPO online rental marketplace.

In reality, according to the order, LoPinto was having difficulty locating shares of this company, and did not secure an offer for shares until July 2020, several months after investors had invested $198,000 in the new series. As stated in the order, LoPinto and his fellow managing partner nonetheless took all fees associated with the fund, including their management fee, in March 2020 and did not correct their prior misstatements.

Registration History of John LoPinto

LoPinto was most recently registered with Worden Capital Management, LLC (CRD#148366) in New York, New York from November 2016 to November 2019. Before Worden Capital, LoPinto was registered with the following firms:

  • Legend Securities, Inc.
  • J.P. Turner & Company, LLC
  • National Securities Corporation
  • Pointe Capital, Inc.
  • Great Eastern Securities, Inc.
  • Salomon Grey Financial Corporation

KlaymanToskes John LoPinto Worden Capital Investigation

Former customers of John LoPinto at Worden Capital whose accounts were excessively traded with investment losses exceeding $100,000, and who have information relating to sales practices and financial misconduct of John LoPinto at Worden Capital, are encouraged to contact Lawrence L. Klayman, Esq. at (561) 542-5131, and download our Special Investor Report.

About Klayman Toskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $225 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.