Another Ex-Broker of Shuttered BD First Standard Suspended by FINRA

Between July 2016 and November 2018, Venturelli excessively traded three customers' accounts in violation of FINRA Rules 2111 (governing suitability of investment strategies) and 2010 (governing standards of commercial honor and principles of trade).

During that period, Venturelli engaged in "quantitatively unsuitable trading in the accounts of customers AR, LK, and RK," FINRA claimed, adding the rep "recommended the trading in the three customers' accounts and they followed his recommendations." His trading of the three accounts "resulted in high turnover rates and cost-to-equity ratios as well as significant losses," FINRA alleged.

AR's account incurred losses of $96,985 and paid $57,355 in commissions and fees, while LK's account incurred losses of $133,748 and paid $49,641 in commissions and fees and RK's account incurred losses of $142,493 and paid $62,807 in commissions and fees, FINRA claimed.

Four other employees at First Standard, Andre Pierre Davis, Michael Leahy, Philip Joseph Sparacino and Gabriel Block had also been previously sanctioned by FINRA.

On Oct. 31, 2019, the New Jersey Bureau of Securities issued a Summary Revocation Order against First Standard, revoking its registration in that state for, among other things, engaging in what the agency called a "fraudulent course of business that consisted of excessive, unsuitable, and frequently unauthorized short-term trading in customer accounts that generated commissions for First Standard and its agents at its customers' expense."

First Standard filed a Uniform Request Withdrawal from Broker-Dealer Registration on or around Nov. 5, 2019. FINRA went on to cancel its license in January, according to the firm's profile on FINRA's BrokerCheck website.