- July 16, 2020
- Cabot Lodge Securities
Bruce Ciallella (CRD # 719050) is a Financial Advisor at Cabot Lodge Securities LLC in Boca Raton, FL. Bruce Ciallella has been in the securities industry since 1980 and previously worked at IFS Securities, Summit Brokerage Services, Inc., Pan-American Financial Advisors, and First Union Securities Financial Network, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA) Bruce Ciallella has been the subject of seven (7) customer complaints during his career, alleging sales practice misconduct. One of those complaints, which was filed in November 2019, remains pending:
• November 2019—”From 2015 to 2018 the client alleges self-dealing and fraud, excessive trading, unsuitable investments, concentrated stock positions, failure to properly manage account, unauthorized trading, breach of fiduciary duty, misrepresentation and omissions, violation of the Florida securities and investor protection act.” Alleged damages are $300,670.64 and the matter remains pending.
• October 2011—”CLIENT ALLEGES ILLEGAL INVESTMENT ADVICE.” The matter settled for $20,000.00.
• August 2006—”CLIENT STATES THAT FA RECOMMENDED UNSUITABLE SECURITIES WHILE AT JW GENESIS. NO LOSS SPECIFIED.” The claim was denied.
• November 1992—”MISREPRESENTATIONS REGARDING PRICING OF LOW QUALITY BONDS AND UNSUITABLE RECOMMENDATIONS OF BONDS PURCHASED DURING 1988 AND 1989. CLAIMS COMPENSATORY DECREASES OF $700,000.00.” The matter settled for $121,000.
• May 1992—“UNSUITABILITY.” The matter settled for $14,500.00.
• June 1988—”ALLEGED IMPROPER PURCHASE OF DEBT INSTRUMENTS, NOT CONFORMING TO PLANS’ REQUIREMENT.” The matter settled for $35,000.00.
• October 1986—”COMPLIANT FROM MR. CIALLELLA’S FATHER-IN-LAW THAT MR. CIALLELLA SOLD A ZERO CORPORATE BOND WITHOUT PROPER AUTHORIZATION, RESULTING IN A LOSS OF $18,750.00. THE COMPLAINT WAS LODGED SHORTLY AFTER MR. CIALLELLA INITIATED DIVORCE PROCEEDINGS AGAINST CLAIMANT’S DAUGHTER.” The matter settled for $9,425.00.
For a copy of Bruce Ciallella’s CRD, click https://brokercheck.finra.org/individual/summary/719050#disclosuresSection
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.
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.