Did Steven Luftschein Cause You Investment Losses?
An Office of Hearing Officers decision became final in which Steven Robert Luftschein of Plainview, New York was barred from association from any FINRA member in all capacities. The sanction was based on findings that Luftschein allegedly churned and excessively traded in three customers’ accounts in violation of Section 10(b) of the Securities Exchange Act of 1934 (the Exchange Act) and Rule 10b-5 thereunder, and also FINRA Rules 2111, 2020 and 2010.
From June 2013 through early October 2016, Steven Robert Luftschein was registered with Aegis Capital Corp. as a General Securities Representative. According to FINRA’s findings, Luftschein executed approximately 430 trades in three firm customers’ accounts resulting in high annualized turnover rates ranging from 12.5 to 96.3 and annualized cost-to-equity ratios ranging from 35.6% to 123.8%. The findings state that Luftschein did not have a reasonable basis to believe that his excessive trading was suitable and caused more than $261,000 in combined losses and approximately $136,200 in sales and commissions. The findings further state that Luftschein allegedly failed to seek or obtain approval from the customers or his firm before trading in the accounts. Although Steven Robert Luftschein is no longer registered or associated with a FINRA member, he remains subject to FINRA’s jurisdiction.
Do You Need a Plainview, New York Securities Account Churning Attorney?
Section 10(b) of the Exchange Act, Rule l0b-5, and FINRA Rule 2020 are anti-fraud rules. They prohibit associated persons from using manipulative, deceptive or other fraudulent devices or contrivances in connection with the purchase or sale of any security (Rule 10b-5) or to induce the purchase or sale of any security (FINRA Rule 2020).
FINRA Rule 2111 requires, among other things, an associated person “who has actual or de facto control over a customer account to have a reasonable basis for believing that a series of recommended transactions, even if suitable when viewed in isolation, are not excessive and unsuitable for the customer when taken together” in light of the customer’s investment profile. A violation of FINRA Rule 2111 also constitutes a violation of FINRA Rule 2010.
Are you a Plainview, New York investor who has suffered significant losses in your stock brokerage and investment accounts? Did your Plainview, New York stockbroker or investment advisor excessively trade or churn or otherwise mismanage your investment account? If so, you will need to have representation from an experienced, highly-rated and nationally recognized FINRA arbitration securities churning law attorney—an attorney who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases as well as other complex legal issues.
Free Initial Consultation With Experienced Securities Churning Attorneys Serving Plainview, New York Residents In FINRA Arbitrations
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout New York, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities and investment law disputes serving New York citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.