Advisor Agrees to Settle SEC Allegations Involving ETFs

From the Desk of Jim Eccleston at Eccleston Law LLC:

Dominic A. Tropiano has agreed to settle allegations from the U.S. Securities and Exchange Commission (“SEC”) that he lost customers more than $1 million investing in risky and complex products. The SEC also alleged that some of these transactions were done without authorization from the customer.

According to the SEC, Tropiano made more than 500 transactions in leveraged exchange traded funds (“ETFs”). The SEC alleged that Tropiano recommended leveraged ETFS, which were unsuitable for his clients. The SEC also claimed that, while leveraged ETFs are designed to be traded daily, Tropiano held these products in customer accounts for weeks or even months.

Furthermore, the SEC alleged that Tropiano traded in customer accounts despite that fact that he was not registered with a broker-dealer. According to separate SEC filings, Tropiano was working with America Northcoast Securities, Inc., which allowed him to trade in customer accounts despite the fact that he was not a registered representative.

Tropiano settled the allegations without admitting or denying the allegations. The civil penalty, disgorgement, and prejudgment interested that Tropiano will owe has not yet been determined.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Tags: SEC, ETFs, Settlement, Eccleston Law