Barred Ohio Stockbroker Accused of Over 500 Unsuitable Exchange Traded Fund Transactions
Dominic Anthony Tropiano, a former registered broker in Ohio, is now facing US Securities and Exchange Commission (SEC) fraud charges. The regulator contends that Tropiano placed more than 500 unsuitable and unauthorized trades in 40 customer accounts belonging to retail customers, including elderly investors.
These transactions and investment strategies involved leveraged exchange-traded funds (ETFs), which are complex, very risky securities. As a result, customers allegedly lost over $1M. Meanwhile, Tropiano earned at least $115K in bonuses and commissions.
Although the SEC does not name any brokerage firms in its complaint, Tropiano was a Key Investment Services broker from 2008 to 2015 and an American Northcoast Securities broker during 2016.
He remains the subject of several FINRA arbitration complaints brought by former customers. FINRA barred Tropiano last year over these allegedly unsuitable ETF transactions. SSEK Law Firm is speaking to retail investors including conservative investors and senior investors who suffered financial losses while working with Dominic Tropiano. Our exchange-traded fund attorneys represent clients throughout the United States.
Tropiano is Named in Six Pending 6-Figure Stockbroker Fraud Claims Involving ETF Investors
Leveraged ETFs are meant to be traded by sophisticated investors with high-risk tolerance levels and should only be held for a day.
According to the SEC, Tropiano proceeded to make ETF trades for investors who had long-term investment goals and moderate risk tolerance levels. He held these risky securities in their accounts for weeks or even months. The former broker also allegedly fraudulently traded leveraged ETFs for some customers, failing to get their authorization.
According to Tropiano’s BrokerCheck Record, he has been named in eight customer disputes. One of the claims in 2014 involving a universal life insurance policy was denied. Another investor claim, from 2016 alleging unsuitable recommendations involving mutual funds, was settled for $85K.
Six other customer disputes are pending, all of them involving exchange-traded funds, including:
- August 2016: This customer is seeking $400K in damages after alleged instances of broker fraud, failure to supervise, unauthorized trading, negligence, breach of fiduciary duty, and other violations.
- August 2016: Another investor is requesting $330K in damages.
- August 2016: This customer makes similar allegations and wants $800K in damages.
- January 2017: This leveraged ETF investor is asking for $100K in damages.
- April 2017: The customer is requesting $150K in damages for ETF-related losses.
- May 2017: This investor fraud claim seeks $250K for losses.
Tropiano also used to be a registered broker for Natcity Investments and McDonald Investments. He worked 10 years in the industry.
Contact Our Investment Fraud Attorneys To Recover Your Losses
Our investment fraud lawyers are here to help retail customers. We work with ETF investors that experienced losses after their funds were invested in unsuitable, high-risk securities. Over the last 30 years, SSEK Law Firm has recovered many millions of dollars on investors’ behalf.