Securities Fraud and Mismanagement

Attorney and Counselor at Law

303-300-5022 / 844-253-5858 Toll Free

Did the actions/inactions of my broker fall below the required standard of care?

We’ll tell you, for FREE.

If you were an investor of Len Marzocco please call 303-300-5022 to discuss whether you have been a victim of churning.  Churning is a type of fraud and investors who are victims of churning are entitled to recovery.

Churning is the action of a securities broker making excessive trades in an account that benefit the broker more than benefiting the investor.  Regulators require that trades be quantitatively and qualitatively suitable.  When a broker makes excessive trades, such trades are quantitatively unsuitable.

Regulators stated that Marzocco engaged in quantitatively was-unable trading in the accounts of multiple customers.

One way of determining the existence of churning is by analyzing the “turnover” in the account.  Turnover rate represents the number of times that a portfolio of securities is exchanged for another portfolio of securities. The cost-to-equity ratio measures the amount an account has to appreciate just to cover commissions and other expenses. In other words. it is the break-even point where a customer may begin to see a return. A turnover rate of six or a cost-to-equity ratio above 20 percent generally indicates that excessive trading has occurred.

Regulators found violations in at least three accounts:

• The first account exhibited an annualized cost-to-equity ratio of 179.29%. JMS’s accouim incurred losses of 5135.;: OD and paid 553,232 in commissions and 11et.s ($36,824 was charged at First Standard and $16,408 was charged at Spartan).’

• The second account exhibited an annualized turnover rate of 39.30 and an annualized cost-to-equity ratio of 76.86%. CR’s account incurred losses of 524.542 and paid $9,647 in commissions and fees.

• The third account exhibited a turnover rate of 37.88 and a cost-to-equity ratio of 54.44%. DG’s account incurred losses of 535.989 and paid 518,644 in commissions and fees.

Marzocco has a history of investor lawsuits, regulatory actions, felony criminal actions, and job terminations for fraud.  His employers had a duty to provide heightened supervision if they were to hire him at all.

Call for a free and confidential consultation.  Most representations handled on a contingency basis.