Arive Capital Markets Investment Advisor Christian Luchetto Fined and Suspended for Excessive and Unsuitable Trading
Christian Luchetto (CRD#: 4648994) is a financial advisor with Arive Capital Markets, and entered the securities industry in 2008. He previously worked at New Castle Financial Services, LLC; First Midwest Securities, Inc., J.P. Turner & Company, LLC; Joseph Gunnar & Co., LLC; Cape Securities, Inc.; and First Standard Financial Company, LLC.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on January 19, 2021, FINRA sanctioned Christian Luchetto, suspending him for three months and fining him. Specifically, FINRA held: “Without admitting or denying the findings, Lucchetto consented to the sanctions and to the entry of findings that he excessively and unsuitably traded a customer’s account. The findings stated that Lucchetto recommended the trading in the customer’s account, and the customer followed Lucchetto’s recommendations. As a result, Lucchetto exercised de facto control over the customer’s account. Lucchetto’s recommendations resulted in the customer paying $30,454.86 in commissions during the relevant period. Lucchetto’s recommended trades also resulted in the customer’s account experiencing a realized loss of $64,402.09.” Christian Luchetto was fined $5,000 and must pay restitution of $30,454.86; he is suspended from all securities-related activities for three months beginning February 16, 2021.
For a copy of Christian Luchetto’s FINRA disciplinary action details, click here.
For a copy of Christian Luchetto’s CRD, click here.
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the financial advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
In addition, unauthorized trading is a serious allegation based upon a belief that the customer did not approve the purchase or sale of a security prior to execution of the trade. Financial Advisors who engage in unauthorized trading often do so to increase commissions earned from their clients’ accounts. FINRA Rules 2510(b) and 2020 explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. In the absence of prior authority given by a client, a trade is deemed unauthorized and subject to rescission.
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