Another First Standard Stockbroker Bites The Dust

Leonard Joseph Marzocco (also known as Lenny Marzocco and as Len Marzocco) of Garden City New York a stockbroker formerly registered with First Standard Financial Company has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings of the stockbroker making unsuitable trades in the accounts of First Standard Financial Company customers. Letter of Acceptance Waiver and Consent No. 2017052466304 (July 1, 2020).

According to the AWC, between November of 2015 and December of 2017, quantitatively unsuitable trades were executed by Marzocco in the accounts of customers DG, CR and JMS. The customers were advised by Marzocco as to all of the trades placed in their accounts. FINRA found that their accounts were in essence controlled by the stockbroker.

In customer DG’s account, Marzocco produced a cost-to-equity ratio of 54.44 percent and a turnover rate of 37.88 which caused DG to pay fees and commissions of $18,644.00 while incurring losses of $35,989.00. In CR’s account, Marzocco’s trading led to an annual cost-to-equity ratio of 76.86 percent and an annual turnover rate of 39.30 which allowed Marzocco to accumulate $9,647.00 in fees and commissions while causing the customer $24,542.00 in losses. Customer JMS’s account was subject to an annual cost-to-equity ratio of 179.29 percent which caused the customer to pay fees and commissions of $53,232.00 while incurring losses of $135,800.00.

The AWC stated that a substantial number of trades were recommended using margin. FINRA noted that margin trading was in no way suitable given JMS’s financial situation and risk tolerance. Marzocco was also aware that JMS’s investments were funded through a home equity line of credit.

FINRA determined that Marzocco’s trading in the three customers’ accounts was excessive and failed to align with the customers’ investment profiles. FINRA determined that the stockbroker violated Rules 2010 and 2111 for this reason.

Marzocco has been identified in seven customer initiated investment related disputes containing allegations of his misconduct while registered with securities broker dealers including Ladenburg Capital Management, Ehrenkrantz King Nussbaum, Institutional Equity Corporation, Rockwell Global and Spartan Capital Securities. FINRA Public Disclosure reveals that a customer filed an investment related complaint involving Marzocco’s conduct in which the customer requested $7,500.00 in damages based upon allegations of margin use without the customer’s consent and misrepresentations being made to the customer by Marzocco.

Marzocco has been identified in a customer initiated investment related written complaint where the customer sought $8,500.00 in damages founded on accusations that unauthorized trades were executed in the customer’s account. Another customer initiated investment related complaint concerning Marzocco’s activities was resolved for $70,000.00 in damages founded on accusations of his failure to execute a trade.

Marzocco has also been referenced in a customer initiated investment related arbitration claim which was settled for $25,000.00 in damages supported by allegations of suitability and misrepresentation with regard to Marzocco’s over-the-counter equities trading while associated with Ehrenkrantz King Nussbaum. According to the claim, a fiduciary duty that was owed to the customer had been breached and Marzocco’s negligence resulted in the customer’s losses. Transactions were allegedly facilitated on margin by the stockbroker without the customer’s consent.

On July 4, 2017, another customer filed an investment related complaint in reference to Marzocco’s conduct where the customer sought unspecified damages based upon accusations that unauthorized over-the-counter equities trades were effected in the customer’s account by Marzocco during the time that he was associated with Spartan Capital Securities.

Marzocco is also the subject of a customer initiated investment related arbitration claim which was settled for $10,500.00 in damages based upon allegations of the breach of a fiduciary duty by the stockbroker and misrepresentations being made in reference to over-the-counter equities transactions effected in the customer’s Rockwell Global account. FINRA Arbitration No. 17-02508 (Oct. 1, 2018). The claim also alleges fraud and churning of the customer’s account by the stockbroker.

Marzocco’s registration with First Standard Financial Company was terminated on July 16, 2019. Between June 21, 2019 and December 10, 2019, he was associated with Woodstock Financial Group.