Lon Charles Faccini Jr. is a stockbroker with Arive Capital Markets LLC (“Arive Capital Markets”) in Brooklyn, NY, with a history of customer complaints and associations with disreputable broker-dealers.
Mr. Faccini has been the subject of seven customer complaints, which include two pending disputes. The pending disputes are securities arbitration claims filed by customers of Mr. Faccini. At least one of the customers was also a client of Arive Capital Markets. The Arive Capital Markets customer alleged excessive trading, churning, and unsuitability. The second customer alleged misrepresentation and unsuitability.
Financial Advisor Lon Charles Faccini Jr. (CRD No. 2736849)
Mr. Faccini has 24 years of experience in the securities industry and has been employed by 11 different brokerage firms. He averages just over two years at each firm but has been associated with Arive Capital Markets since 2016.
According to a 2017 investigation by Reuters, Arive Capital Markets hired more brokers with a history of significant disclosures than all but two other firms in the country. In 2021, Iorio Altamirano LLP set out to update that analysis.
The investigation revealed that eighty percent (80%) of Arive Capital Markets’ brokers and supervisors have significant red flag public disclosures. Significant red flag disclosures include:
- regulatory sanctions,
- terminations of employment after allegations of misconduct,
- customer disputes that result in an award or settlement, and
- prior association with a firm that FINRA has expelled.
You can read the full investigative report here: Investigative Report: Iorio Altamirano LLP Investigation into Arive Capital Markets Reveals Troubling Pasts for Owners, Executives, and Brokers.
Mr. Faccini, with numerous serious incidents reported on his BrokerCheck report, appears to fit right in at Arive Capital Markets.
Mr. Faccini himself has a history of associating himself with disreputable firms. In fact, five of the eleven firms that Mr. Faccini Jr. has been associated with, five have been expelled from the securities industry by FINRA:
- LH Ross & Company, Inc. (1/9/2004 – 12/17/2004).
- Continental Broker-Dealer Corp. (5/22/2003 – 1/21/2004).
- Seaboard Securities, Inc. (6/5/1997 – 5/16/2002).
- J. Meyers & Co., Inc. (4/21/1997 – 6/6/1997).
- Investors Associates, Inc. (7/15/1996 – 4/18/1997).
Mr. Faccini also has a history of customer complaints, which appear to allege the use of “boiler room” tactics, including unfair, dishonest, and high-pressure sales tactics. Currently, he has been the subject of six customer complaints that are either pending or have resulted in a settlement or judgement:
- In 2019, a customer filed a securities arbitration complaint alleging excessive trading, unsuitability, and churning while Arive Capital Markets employed Mr. Faccini. Mr. Faccini denies the allegations, and the complaint is pending.
- In 2018, a customer filed a securities arbitration complaint alleging misrepresentation and unsuitability. The complaint is pending.
- In 2015, a customer filed a securities arbitration complaint alleging breach of fiduciary duty, common law fraud, negligence/negligent misrepresentation, omissions, breach of contract, churning, and unsuitability related to exchange-traded funds. An arbitration Panel found liability and awarded the customer monetary compensatory damages. Faccini was employed by Liberty Partners Financial Services, LLC when the alleged conduct occurred.
- In 2016, a customer filed a securities arbitration complaint alleging unsuitability related to equities. The dispute was settled by the firm that employed Mr. Faccini when the alleged conduct occurred, Cape Securities, Inc.
- In 2013, a customer filed a securities arbitration complaint alleging harassment and charging $40,000 in excess commissions. The dispute was settled by the firm that employed Mr. Faccini when the alleged conduct occurred, Liberty Partners Financial Services, LLC.
- In 2010, a customer filed a securities arbitration complaint alleging a failure to follow instructions related to stop-loss orders. The dispute was settled by the firm that employed Mr. Faccini when the alleged conduct occurred, Liberty Partners Financial Services, LLC.
Several of the complaints against Mr. Faccini alleged excessive trading and churning.
Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.
Churning is a more egregious variation of excessive trading. Churning refers to a situation where the broker executed an excessive amount of trades and did so with the intent to defraud or reckless disregard for the customer’s interest.
Excessive trading and churning are unethical and illegal. They are also violations of securities rules and regulations and can cause enormous harm to customers.
Arive Capital Markets, LLC – Supervisory Duties
Brokerage firms like Arive Capital Markets, LLC must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as excessive trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise their financial advisors or the investment account activity, they may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
Securities arbitration is a unique and complex practice area. Investors should seek out experienced counsel who understands the FINRA forum and can navigate the arbitration process to effectively advocate on their behalf.
If you or a loved one were a customer of Lon Faccini or Arive Capital Markets and either sustained financial losses or suspect that Mr. Faccini did not have your best interest in mind when recommending investments or account transactions, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at firstname.lastname@example.org or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.