Did you lose money investing with Steven Luftschein (CRD# 2690117)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Steven Luftschein. If you suffered losses investing with Steven Luftschein, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of March 18, 2023, Steven Luftschein’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
18 Customer Disputes
1 Regulatory Event
January 13, 2021 – An Offer of Settlement was issued in which Luftschein was barred from association with any FINRA member in all capacities. Without admitting or denying the allegations, Luftschein consented to the sanction and to the entry of findings that he willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and also violated FINRA Rule 2020 by churning customer accounts. The findings stated that Luftschein controlled the trading and the volume and frequency of trading in the accounts, deciding what securities to buy and sell, the quantities, the price and when each transaction would occur. Luftschein deliberately incurred unreasonably high trading costs in the customers’ accounts, which made it virtually impossible for the accounts to be profitable. Indeed, Luftschein’s trading caused more than $261,000 in combined losses, while generating gross sales credits and commissions of approximately $136,200, with him receiving a substantial percentage of this amount. Luftschein also masked the true costs of his trading from customers by placing a high percentage of the trades as riskless principal trades. The findings also stated that Luftschein’s trading was excessive and quantitatively unsuitable for each of the customers, as evidenced by the high annualized turnover rates and cost-to-equity ratios, the size and frequency of the transactions, the transaction costs incurred and the customers’ investment objectives and needs. Luftschein did not have a reasonable basis to believe that his trading was suitable. The findings also included that Luftschein effected trades in the customers’ accounts without first discussing with, and obtaining authorization for the trades from, the customers. (FINRA Case #2016051704303)
Current and Previous Registrations
05/16/2017 – 05/21/2018 JOSEPH STONE CAPITAL L.L.C. (CRD#:159744) HUNTINGTON, NY
B
06/06/2013 – 10/21/2016 AEGIS CAPITAL CORP. (CRD#:15007) MELVILLE, NY
10/09/2012 – 06/06/2013 JOHN THOMAS FINANCIAL (CRD#:40982)
FINRA expelled the firm on 10/31/2013
NEW YORK, NY
08/03/2011 – 10/23/2012 ROCKWELL GLOBAL CAPITAL LLC (CRD#:142485) MELVILLE, NY
01/04/2010 – 08/03/2011 PAULSON INVESTMENT COMPANY, INC. (CRD#:5670) HAUPPAUGE, NY
10/22/2004 – 01/13/2010 GUNNALLEN FINANCIAL, INC (CRD#:17609) HAUPPAUGE, NY
10/23/2002 – 11/15/2004 MAXIM GROUP LLC (CRD#:120708) NEW YORK, NY
01/04/2001 – 10/23/2002 INVESTEC ERNST & COMPANY (CRD#:266) NEW YORK, NY
07/22/1996 – 01/16/2001 JOSEPHTHAL & CO., INC. (CRD#:3227) NEW YORK, NY
04/03/1996 – 08/14/1996 J.W. BARCLAY & CO., INC. (CRD#:23350) WOODBRIDGE, NJ
12/11/1995 – 01/18/1996 METLIFE SECURITIES INC. (CRD#:14251) SPRINGFIELD, MA
12/11/1995 – 01/18/1996 METROPOLITAN LIFE INSURANCE COMPANY (CRD#:4095) NEW YORK, NY
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Steven Luftschein and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
