Ohio Broker Dominic A. Tropiano Charged by SEC with Fraud

Tropiano was previously barred by FINRA for recommending unsuitable ETF transactions. 

The Sonn Law Group is investigating allegations that Dominic Tropiano committed fraud. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Dominic Anthony Tropiano (CRD#: 4761462) was charged with fraud by the SEC on August  27, 2020, based on allegations he committed fraud by engaging in unsuitable and unauthorized trading in the accounts of retail customers. The SEC’s complaint alleges that Tropiano placed more than 500 trades of complex, high-risk securities called leveraged exchange-traded funds (ETFs) for at least 40 retail customer accounts. 

The complaint alleged that the leveraged ETFs Tropiano purchased were high-risk securities intended to be traded by sophisticated investors and not held for periods longer than one day. Tropiano recommended the ETFs to retail investors who had only moderate risk profiles and long-term investment objectives. He then held the ETFs in their accounts for weeks and months in some cases. Tropiano also allegedly fraudulently traded ETFs for certain customers without their authorization. Tropiano’s fraudulent trading allegedly caused his customers to suffer combined losses of over $1 million. 

Without admitting or denying the SEC’s allegations, Tropiano agreed to the entry of a judgment that permanently enjoins him from violating the charged provisions of the federal securities laws, and provides that the amount of disgorgement, prejudgment interest, and civil penalties will be determined by the court at a future date.

In May 2019, Tropiano was barred by FINRA based on allegations that he recommended transactions involving non-traditional exchange-traded funds (ETFs) to customers, without having a reasonable basis to believe those transactions were suitable for anyone, due to his lack of understanding of the unique risks, terms and features of the products. 

FINRA’s findings stated that Tropiano’s recommendations involving non-traditional ETFs were also unsuitable for those customers in light of their investment profiles, which included conservative investment objectives. The findings also stated that Tropiano caused non-traditional ETF transactions to be placed in customers’ securities accounts without the customers’ knowledge or consent, and in the absence of written or oral authorization for him to place such trades. The findings also included that Tropiano was not properly registered with FINRA while engaging in the securities business of a firm by soliciting the purchase and sale of non-traditional ETFs in the accounts of firm customers.

Tropiano has eight other disclosures on his BrokerCheck report.

May 2017 Customer Dispute

• Status: Pending
• Allegations: Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs made by another individual, including negligence, violations of FINRA rules, breach of fiduciary duty, unsuitability, unauthorized trading, and failure to supervise. 
• Damage Amount Requested: $250,000.00

• April 2017 Customer Dispute
• Status: Pending
• Allegations: Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of the Ohio Securities Act and FINRA rules, negligence, unsuitability, failure to supervise, unauthorized trading, breach of fiduciary duty, and breach of contract.
• Damage Amount Requested: $150,000.00

January 2017 Customer Dispute

• Status: Pending
• Allegations: Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of FINRA rules and recommendations, negligence, unsuitability, failure to supervise and unauthorized trading.
• Damage Amount Requested: $100,000.00
• November 2016 Customer Dispute
• Status: Settled
• Allegations: Client alleges RR’s recommendations to purchase various mutual funds totaling $446,740 from 2014 to March 2015 were unsuitable. 
• Damage Amount Requested: $120,000.00
• Settlement Amount: $85,000.00

August 2016 Customer Dispute

• Status: Pending
• Allegations: Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of the Ohio Securities Act and FINRA rules, negligence, unsuitability, failure to supervise, unauthorized trading, breach of fiduciary duty, fraud, and breach of contract.
• Damage Amount Requested: $800,000.00

August 2016 Customer Dispute

• Status: Pending
• Allegations: Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including negligence, violation of FINRA rules, breach of fiduciary duty, unsuitability, unauthorized trading, and failure to supervise.
• Damage Amount Requested: $330,000.00

August 2016 Customer Dispute

• Status: Pending
• Allegations: Claimants asserted numerous claims in connection with their 2015 and 2016 investments in leveraged ETFs, including violations of the Ohio Securities Act and FINRA rules, negligence, unsuitability, failure to supervise, unauthorized trading, breach of fiduciary duty, fraud, and breach of contract.
• Damage Amount Requested: $400,000.00

August 2016 Customer Dispute

• Status: Denied
• Allegations: Client alleges the registered representative misrepresented the features of a universal life insurance policy that was purchased in May of 2012.
• Damage Amount Requested: $36,000.00

Contact Us Today

The Sonn Law Group is currently investigating allegations that Dominic Tropiano committed fraud. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.