The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Rocco Roveccio. According to his publicly available FINRA BrokerCheck report, Rocco Roveccio has been the subject of multiple customer disputes.

Rocco Roveccio was a New Jersey based securities broker. He worked in the securities industry for twenty-one years. During his career, he was registered with fourteen different securities firms.

His Registrations

  • Northeast Securities (1996-1997)
  • Taglich Brothers, D’amadeo, Wagner and & Co. (1997)
  • J.P. Turner & Company (1997-1998, 2006-2008)
  • LCP Capital Corp (1999-2001)
  • Stone Harbor Financial Services (2001)
  • Cantone Research (2001)
  • Cybervest Securities (2001-2002)
  • Synergy Investment Group (2002)
  • Joseph Stevens & Company (2002-2005)
  • Gunnallen Financial (2005-2006)
  • Mercer Capital LTD (2008-2009)
  • Brookstone Securities (2009-2012)
  • Alexander Capital (2012-2014)
  • First Standard Financial Company (2014-2019)

The Allegations

  • In December 2000, a customer alleged that Rocco Roveccio engaged in unauthorized trading, recommended unsuitable securities, breached his fiduciary duty, and churned their account. This case went to arbitration where the customer was awarded $216,275 in damages.
  • In August 2006, a customer alleged that Rocco Roveccio engaged in unauthorized trading. This case was settled for $8,011 in damages.
  • In June 2013, a customer alleged that Rocco Roveccio executed unauthorized trades, breached his fiduciary duty, and recommended unsuitable securities. This case was settled for $87,500 in damages.
  • In December 2017, a customer alleged that Rocco Roveccio churned their account and executed unauthorized trades. This case went to arbitration where the customer was awarded approximately $46,000 in damages.
  • In May 2018, a customer alleged that Rocco Roveccio engaged in unauthorized trading and recommended unsuitable investments. This case is currently pending. The customer is seeking $1.5 million in damages.
  • In May 2019, Rocco Roveccio was officially sanctioned by the United States Securities and Exchange Commission. The findings in this matter state that Roveccio recommended to multiple customers a pattern of high cost, in-and-out trading. According to the SEC, Rocco Roveccio lacked a reasonable basis to believe that this trading pattern was suitable for these customers–especially for three of them whose investment objectives and financial needs were in direct opposition with this investment strategy. The findings also state that Roveccio made material misrepresentations about the investments to these three customers, concealed material information, churned their accounts, and made trades in their accounts without their authorization. Due to these alleged actions, Rocco Roveccio was barred by the SEC from acting as a securities broker in any fashion.
  • In May 2019, a customer alleged that Rocco Roveccio executed unauthorized trades, recommended unsuitable investments, and charged them excessive commissions. This case is currently pending. The customer is seeking $26,000 in damages.

Churning

Securities brokers receive a percentage of an investor’s principal investment whenever they execute a trade on their behalf. This percentage is the broker’s commission they receive for brokering the trade. There is a deceptive trading practice known as churning in which securities brokers trade the accounts of their customers excessively in order to increase the number of commissions they receive. This practice is often detrimental to investors due to the unnecessary fees and trading losses that it can lead to.

Unauthorized Trading

Securities brokers like Rocco Roveccio are required to obtain their customers’ authorization before executing trades on their behalf. Just because an investor has hired a securities broker does not mean they have forfeited their right to decide what securities they want to be invested in. The job of the securities broker is to recommend investments, not to take it upon themselves to make every decision unilaterally.

Unsuitable Investments

Most investors do not have the ability to invest suitably on their own. This ability requires the investment knowledge and experience that securities brokers possess. This is the exact reason that investors hire brokers in the first place. Determining suitability is one of the most important aspects of a securities broker’s job. Brokers can determine if a particular investment is suitable for a particular customer based on factors like investment objectives, age, risk tolerance, liquidity needs, and financial situation. Being placed in investments that they are not financially suited for can be detrimental to investors. It is the obligation of the broker to conduct the necessary due diligence required to determine suitability by analyzing the above mentioned factors. Securities brokers cannot excuse themselves by claiming they were unaware of an investment’s unsuitability.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Rocco Roveccio, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged  unless we collect for you.