Joseph Augustien Lianzo, Broker with SW Financial, Suspended by FINRA Following Allegations of Failure to Supervise

INVESTORS: FINRA suspended SW Financial broker Joseph Augustine Lianzo for making unauthorized trades in customers’ accounts.

Joseph Agustien Lianzo (CRD: 4516842) is registered as a broker with SW Financial, where he has been employed since 2017. Previously, Lianzo was registered as a broker with Arive Capital Markets in 2017.

Lianzo has seven disclosures on his BrokerCheck report. Three disclosures relate to Lianzo’s personal finances.

November 2021 Regulatory Judgment

• Status: Final
• Initiated By: Maryland
• Allegations: Lianzo, without admitting or denying the findings, consented to sanction and to the entry of findings that he excessively traded customer accounts which incurred losses of $293,308 and the customers paid $127,506 in commissions. Lianzo was suspended by FINRA for a period of eight (8) months. The Division issued an Order to Show Cause and an Order of Summary Suspension that ordered that failure of Lianzo to file a written answer, including a request for a hearing with 15 days from the date of service of these Orders would result in the entry of an Order of Revocation of Agent Registration
• Resolution: Revocation
• Sanctions: Revocation

August 2021 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Lianzo consented to the sanction and to the entry of findings that he excessively traded customer accounts. The findings stated that Lianzo recommended the quantitatively unsuitable trading in the accounts for the customers and they routinely followed his recommendations. As a result, Lianzo exercised de facto control over the customer accounts. Lianzo’s trading of the accounts resulted in high turnover rates and cost-to-equity ratios as well as significant losses. Specifically, the customer accounts incurred losses of $293,308 and the customers paid $127,506 in commissions. The findings also stated that Lianzo placed trades in customer accounts without their prior authorization, knowledge or consent.
• Resolutation: Acceptance, Waiver & Consent (AWC)
• Sanctions: Suspension
• Registration Capacities Affected: All Capacities
• Duration: Eight months
• Start Date: 9/20/2021
• End Date: 5/19/2022
• Sanctions: In light of Lianzo’s financial status, no monetary sanction has been imposed.

April 2018 Customer Dispute

• Status: Settled
• Allegations: Churning, negligence, unsuitability, unauthorized trading, breach of contract
• Damage Amount Requested: $108,215.00
• Settlement Amount: $14,999.00
• Broker Comment: Mr. Lianzo denies all accusations made by claimant. The client knew and approved of all transactions prior to being entered. All the trades were suitable and in line with the client’s investment objectives. To avoid further litigation costs, Mr. Lianzo has decided to settle this matter.

April 2018 Customer Dispute

• Status: Settled
• Allegations: Client alleges churning, negligence, breach of contract, unauthorized transactions, failure to follow instructions, margin fraud, misrepresentation and unsuitable recommendations.
• Damage Amount Requested: $197,500.00
• Settlement Amount: $100,000.00
• Broker Comment: [Customer] was a client of mine at J.P. Turner & Co. beginning in 2007. During the time frame of the account we had a very amicable relationship to a point where he wrote in a letter to praise my services regarding the handling of his account. He also had other accounts at the firm that I was not aware of at the time prior to commencing business together. Had I been advised about this, I would never have solicited him. His personal account was coded as short term trading and speculation, and prior to each and every transaction; the client approved it before execution. In conclusion, I find all the allegations made by the client to be untrue, inaccurate and appalling.

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Joseph Augustien Lianzo. 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.