Financial Industry Regulatory Authority, Inc. (FINRA) Initiates a Review of Luftschein’s Previous Customers’ Account Churning Complaints Related to His Work at AEGIS Capital Corp.
Unsuitable investment attorney Alan Rosca is currently reviewing Steven Robert Luftschein‘s FINRA Brokercheck Report. An entry from May 13, 2020 by FINRA shows that regulators are actively investigating customer reports of account churning, which often involves the frequent, unauthorized trading of securities. The customers affected by this trading strategy are claiming $261,000 in losses. FINRA alleges that Luftschein pocketed significant income as a result of making such trades.
His Brokercheck Report cites other customer complaints during his 21-year career.
Unsuitable investment attorney Alan Rosca and his Rosca Scarlato LLC colleagues have built their practice on advocating on behalf of investors who have lost significant financial assets due to alleged broker misconduct. Generally speaking, investment advisers and brokers often times have a fiduciary duty to their clients. They’re typically required to seek their consent before performing trades, advise them of their pros and cons of making such choices and handle their investments in a financially-prudent way.
Attorney Rosca and the firm’s other lawyers are investigating customer claims filed against New York broker Steven Luftschein aka Steven Lerner during the past year. Luftschein’s investors should consult with Alan Rosca or one of his fellow attorneys at arosca@rscounsel.law or 888-998-0530 to discuss their experiences working with this broker and how they can best protect their rights in their case.
Steven Luftschein’s FINRA Reports Show Settlements with More Than a Dozen Customers
Luftschein’s FINRA Brokercheck Report shows that he’s worked for 12 different brokerages since his 21-year career began in 1995. The report reflects moves from one brokerage to the next after working there for a few days or months.
The standout firms that he worked at for more than a year include Josephthal & Co., Inc., where he worked from 1996 to 2001. Maxim Group LLC employed Luftschein as a broker for two years between 2002 and 2004 before he left to work for the New York-based Gunnallen Financial, Inc. for five years between 2004 and 2010. The final brokerage firm that he worked for more than a year was Aegis Capital Corp., where he remained employed from 2013 to 2016.
Luftschein worked at the other eight firms for a year or less during his 21-year career. His FINRA Brokercheck Report doesn’t show any affiliation with a brokerage since 2018. Luftschein’s report indicates that his customers at virtually every brokerage firm he worked at have ultimately filed disputes against him.
Complaints Filed by Customers Against Luftschein
Four of Luftschein’s customers successfully filed complaints against him during his two years working for Maxim Group LLC. At least one of his clients settled with him for $40,000 after accusing him of engaging in excessive, unauthorized and unsuitable trading within her account. Three other customers accused him of taking excessive commissions. They collectively received over $98,000 in damages as a result of this.
Luftschein settled another dispute with a customer in 2006 for $15,000 after reportedly accepting excessive commissions, engaging in unsuitability, and making unauthorized trades. Steven Luftschein went on to work at a few different brokerages during which time his clients won three more settlements against him for allegations such as failing to monitor client investments resulting in losses and overuse of margin. He settled those three claims for $571,378.
Steven Luftschein settled another five disputes for a collective $2.38 million while working at his last two brokerages. The customers that he settled with accused him of unsuitability, mismanaging their accounts, excessive and unauthorized trading, fiduciary duty breaches and negligent supervision, among others. All of these activities allegedly took place beginning in 2013 and continued through 2018.
Outstanding Disputes Against Broker Steven Luftschein Linger
One of Luftschein’s former clients filed a claim against him, alleging that he made misleading statements and engaged in both unsuitable and excessive trading during his time working with the broker. He claims losses of $200,000. FINRA is currently investigating a similar case with reported losses of $261,000.
Luftschein reportedly masked the above-average trading costs from customers and invested a high percentage of the proceeds in riskless principal trades despite allegedly knowing that doing so was unsuitable. He reportedly didn’t discuss any of these trades with his customers, nor did they give him discretionary authority to make them without their consent.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated, and any discussion of various duties that financial professionals may have are general considerations, not necessarily applicable to any one case, and do not constitute legal advice. Investors looking for legal advice for their particular situation should contact a qualified lawyer and discuss about the facts applicable to their specific case.
What You Can Do If You Worked with Steven Luftschein
Rosca Scarlato’s unsuitable investment attorneys collectively have decades of experience working with clients who have lost money at the hands of alleged unscrupulous brokers. Investor rights attorney Alan Rosca is preparing to investigate customer disputes filed against broker Steven Luftschein. He plans to file suit on behalf of victims who have lost substantial savings if he determines that any impropriety occurred.
You should consult with an attorney at Rosca Scarlato LLC if you’re concerned about how Steven Luftschein handled your investment portfolio. You can call Alan Rosca or one of the firm’s other unsuitable investment attorneys for a free review of your case and overview of your rights at 888-998-0530 or reach out to them by filling in this web page’s contact form or by emailing arosca@rscounsel.law. Please note that the attorneys at Rosca Scarlato LLC take most of their cases on a contingency basis, which means that the firm’s lawyers typically advance the costs associated with representing clients, do not ask for any money down, and only get paid for their fees and case expenses at the conclusion of your case (the case expenses are deducted before fees). The client typically owes no fees or expenses if there is no recovery. Also, each case is different and prior successes in any one case are not necessarily indicative of future success in other cases.
