Giarrusso Law Group LLC continues its investigation into allegations of portfolio mismanagement—including purported excessive trading and churning—concerning Long Island, NY broker, Michael Venturino (Venturino, CRD# 5872439). Attorney Michael Giarrusso is currently representing investors in pending securities arbitration proceedings involving Mr. Venturino and is interested in speaking with other investors who may well have claims to recover their investment losses.

According to publicly available information, Michael Venturino has been named or is otherwise involved in a total of twelve (12) customer complaints over the course of his career. Mr. Venturino has a decade of industry experience as a licensed stockbroker. From 2014 until July 2017, Mr. Venturino was employed by Aegis Capital Corp. (Aegis Capital) in that firm’s Melville, NY branch office. Subsequently, from July 2017 through April 2018, Venturino was affiliated with Trident Partners Ltd. (Trident Partners), of Woodbury, New York. And most recently, since April 2018 through present, he has been affiliated with Spartan Capital Securities, LLC (Spartan Capital) in their Garden City, NY, office.

Mr. Venturino’s disciplinary history in the securities industry has been checkered, totaling twelve customer disputes. As of the date of this writing, four matters resulted in settlements in an aggregate amount of $535,000. Furthermore, four disputes remain pending. With respect to alleged wrongdoing, Mr. Venturino may have negligently mismanaged investor portfolios by engaging in excessive trading, or in some instances, churning. Most recently, on or about November 6, 2020, FINRA Enforcement disclosed that it had commenced an investigation concerning Mr. Venturino, with regard to allegations of purported violations of FINRA Rule 2111 (Suitability) and Rule 2010, as well Section 10(b)5 of the SEC Exchange Act of 1934.

Excessive trading occurs where (1) a financial advisor exercises control over a customer’s account, and (2) the level of activity in that account is inconsistent with the customer’s investment objectives, financial situation and needs. Excessive trading constitutes a violation of industry standards under FINRA Rule 2111 (Quantitative Suitability). In determining whether trading is excessive, the use of certain factors and corresponding statistical formulas is commonplace, including an account’s turnover rate, the cost-equity ratio, and the use of in-and-out trading in customer’s account.

Furthermore, pursuant to FINRA Rule 3110 (NASD Rule 3010), brokerage firms like Aegis Capital, Trident Partners, and Spartan Capital, must “establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance” with applicable FINRA rules, in addition to state and federal securities laws. It is critical for broker-dealers to not only establish such a supervisory system, but further to properly maintain their supervision, by among other things, periodically meeting with individual financial advisors to discuss the products they are selling and their sales methods, as well as to examine correspondence with customers. In instances where a customer suffers losses due to an inappropriate or unsuitable investment (or investment program), then the brokerage firm may be held liable for any failure to adequately supervise their employee.

The attorneys at Giarrusso Law Group LLC have significant experience in working closely with investors to resolve all manner of issues concerning investment losses, including losses suffered due to portfolio mismanagement or misconduct by a broker or financial advisor. Investors may pursue a claim to recover monies through securities arbitration before FINRA, or in some instances, through litigation. Investors who wish to discuss a possible claim are invited to contact us by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost, confidential consultation.