Jason Paul Collichio, Broker with Landolt Securities, Facing Customer Disputes Alleging Unsuitable Investment Recommendations

INVESTORS: Landolt Securities broker Jason Paul Collichio is facing multiple pending customer disputes alleging recommendation of unsuitable investments.

Jason Paul Collichio (CRD#: 4727199) is registered as a broker with Landolt Securities, where he’s been employed since September 2021. Previously, Collichio was registered as a broker with Worden Capital Management from 2009 until 2021.

Collichio has five disclosures on his BrokerCheck report. 

March 2022 Customer Dispute

Status: Pending

Allegations: Unsuitable recommendations

Damage Amount Requested: $49,343.00

Broker Comment: Rep vehemently denies any wrongdoing. This is part of a mass claim filed against over 50 brokers by over 50 unrelated customers who were solicited by the notorious non-attorney group CSAG, which promises recoveries to unsuspecting investors and then extorts money out of innocent brokers and their firms by filing frivolous claims and trying to force settlements in order to avoid expensive litigation. This claim has no merit whatsoever, as the customer was a very experienced and affluent investor who sought to speculate with less than 5% of his net worth, and now only wants to recover his market losses as promised by CSAG. I will vigorously defend this false claim and seek all damages and costs from this customer and CSAG.

March 2022 Customer Dispute

Status: Pending

Allegations: Unsuitable recommendations

Damage Amount Requested: $20,000.00

Broker Comment: Rep vehemently denies any wrongdoing. This is part of a mass claim filed against over 50 brokers by over 50 unrelated customers who were solicited by the notorious non-attorney group CSAG, which promises recoveries to unsuspecting investors and then extorts money out of innocent brokers and their firms by filing frivolous claims and trying to force settlements in order to avoid expensive litigation. This claim has no merit whatsoever, as the customer was a very experienced and affluent investor who sought to speculate with less than 5% of his net worth, and now only wants to recover his market losses as promised by CSAG. I will vigorously defend this false claim and seek all damages and costs from this customer and CSAG.

December 2021 Regulatory Judgment

Status: Final

Initiated By: Massachusetts

Allegations: Given Collichio’s disclosure history, the Massachusetts Securities Division allowed Collichio’s registration as a broker-dealer agent in Massachusetts pursuant to a five (5) year plan of heightened supervision.

Resolution: Consent 

Sanctions: Undertaking

Sanctions: Consent Order

September 2021 Regulatory Judgment

Status: Final

Initiated By: Colorado Division of Securities

Allegations: Restrictions were placed on Jason Paul Collichio’s Colorado sales representative license after reviewing his disclosure history. The licensee will not act in any supervisory, managerial, or principal capacity for any agent licensed in the State of Colorado or any account of a Colorado resident for a period of two years from the effective date of the license.

Resolution: Consent 

Sanctions: The licensee will not act in any supervisory, managerial, or principal capacity for any agent licensed in the State of Colorado or any account of a Colorado resident for a period of two years from the effective date of the license. The license was declared effective as of November 17, 2021.

December 2020 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Collichio consented to the sanctions and to the entry of findings that he failed to reasonably supervise two former registered representatives at his member firm who engaged in a pattern of recommending unsuitable active trading strategies to customers and churned customer account. The findings stated that Collichio, the firm’s principal responsible for supervising the registered representatives, was aware of multiple red flags of excessive, unsuitable use of margin, and churning, including high cost-to-equity ratios and high turnover rates in customer account. Collichio did not reasonably investigate those red flags or otherwise take meaningful action to stop the misconduct. Notably, the firm placed the representatives on heightened supervision because each had three or more customer complaints alleging sales practice abuses within the preceding two years. Collichio’s responsibilities, among other things, included reviewing, on a daily basis, trading activity for excessive commissions or suitability issues. Yet, Collichio did not reasonably investigate the red flags. Rather, he generally assumed that such trading was reasonable for a customer with high net worth and speculative investment objective. Pursuant to the heightened supervision plans, Collichio was responsible for verifying with customers new account information when an account was opened, contacting customers, and conducting a monthly review of book and sales practices. Collichio, however, did not investigate the suitability of the trading in the customers’ accounts. One representative churned and excessively traded seven customers’ accounts who incurred realized losses of $1,834,834 from trading while paying $529,056 in commissions. Similarly, another representative churned and excessively traded the account for four customers who incurred realized losses of $1,170,635 from this trading, while paying $940,705 in commissions. Although Collichio sometimes suggested that representatives reduce future commissions or lower margin balances, he did not otherwise limit the trading or margin use in the accounts or discipline the representatives.

Resolution: Acceptance, Waiver & Consent (AWC)

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $5,000.00

Sanctions: Suspension

Registration Capacities Affected: Any Principal Capacity

Duration: Three months

Start Date: 1/19/2021

End Date: 4/18/2021

Sanctions: Undertaking

Sanctions: Collichio shall undertake to, within 90 days, attend and satisfactorily complete 20 hours of continuing education concerning supervisory responsibilities by a provider not unacceptable to FINRA.

Regulator Statement: Fine paid in full on January 6, 2021.

Broker Comment: In Jan 2015 I was given the responsibility to supervise 2 RR’s who were the branch owners. At no time prior to being assigned as supervisor was I ever given any education or training on how to properly supervise these individuals. I did the best I could at the time with the information given to me which was minimal. The firm was also sanctioned for failure to have the proper supervision procedures in place for its supervisors.

If you have any information about Jason Paul Collichio that you would like to share or discuss, please call our firm for a confidential consultation. 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.