- November 14, 2020
- NBC Securities Inc
Marcello Lattuca (CRD # 2149434) is a Financial Advisor at NBC Securities, Inc. in Massapequa, NY. Marcello Lattuca has been in the securities industry since 1991 and previously worked at JHS Capital Adivisors, LLC, Gunnallen Financial, Inc, and Kirlin Securities, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Marcello Lattuca has been the subject of four (4) customer complaints, alleging sales practice misconduct:
• May 2020—”CLAIMANTS ALLEGE UNSUITABLE RECOMMENDATIONS, FRAUDULENT MISREPRESENTATION, CHURNING, BREACH OF CONTRACT, NEGLIGENT SUPERVISION, AND BREACH OF FIDUCIARY DUTY. EXACT DATE OF EVENTS IS NOT KNOWN BUT IS FROM PRIOR TO THE RR’S CURRENT EMPLOYMENT DATE AND CONTINUED THROUGH MARCH 2020.”
• May 2020—”CLAIMANT ALLEGES UNSUITABLE RECOMMENDATIONS, FRAUDULENT MISREPRESENTATION, CHURNING, BREACH OF CONTRACT, NEGLIGENT SUPERVISION BY THE FIRM, BREACH OF FIDUCIARY DUTY, AND ELDER ABUSE. EXACT DATE RANGE IS UNKNOWN, BUT IS ALLEGED TO BE FROM 2012 THROUGH MAY 2020.
• May 2020—”CLAIMANTS ALLEGE UNSUITABLE RECOMMENDATIONS, FRAUDULENT MISREPRESENTATION, CHURNING, BREACH OF CONTRACT, NEGLIGENT SUPERVISION BY THE FIRM, AND BREACH OF FIDUCIARY DUTY. EXACT DATES ARE NOT PROVIDED, BUT THE COMPLAINT ALLEGES THE CLIENTS MET THE RR IN 2013 WHILE HE WAS EMPLOYED BY JHS. CLIENTS TRANSFERRED THEIR ACCOUNTS FROM NBC SECURITIES IN MARCH/APRIL 2020.” Alleged damages are $500,000.00 and the matter remains pending.
• March 2000—”MISREPRESENTATION OF BRAZOS SPORTSWEAR, INC. BONDS PURCHASED IN 1997 AND 1998.” The matter settled for $24,000.
For a copy of Marcello Lattuca’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.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
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.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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