Rich Ceffalio Allegedly Recommended Unsuitable Investments

Rich Ceffalio (CRD# 2619565[1]), formerly a broker registered with LPL Financial, recommended unsuitable investments, according to a recent investor dispute. MDF Law is currently investigating the Arlington Heights, Virginia financial professional for similar conduct. If you have concerns about investments in your account, call us for a free consultation today. 

More information about the allegations against Mr. Ceffalio, currently registered with NewEdge Advisors, follows below. This post is based on a September 5, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.

Pending Complaints Allege Forgery, Unsuitable Recommendations

Three parties of investors filed disputes involving Mr. Ceffalio since 2023. The disputes allege that he forged customer signatures, directed customer funds outside the customers’ control, recommended unsuitable investments, and caused customers’ accounts to underperform. The disputes, which remain pending, seek more than $3.5 million in cumulative damages. 

Why Did LPL Financial Fire Ceffalio?

LPL Financial fired Mr. Ceffalio in May 2024, according to a disclosure on his BrokerCheck report. As the disclosure explains, the firm terminated his registration following allegations that he solicited a customer loan “without notice to and approval from Firm.” It explains further that he allegedly “[s]ubmitted trade corrections containing inaccurate basis for trade correction.”

Understanding FINRA Rules

The disputes involving Mr. Ceffalio concern a number of important FINRA rules. Specifically, the following rules generally prohibit unsuitable recommendations, forgery, and misappropriation:

• FINRA Rule 2111, also known as the suitability standard, requires brokers to tailor their recommendations to a customer’s background and objectives.
• Rule 2020 prohibits the use of fraudulent or deceptive devices to conduct securities transactions. 
• Rule 2010 requires brokers to uphold “high standards of commercial honor and just and equitable principles of trade” in the course of their business.

FINRA: Former LPL Broker Based in Arlington, Virginia

Rich Ceffalio began his career as a broker in 1995, when he joined Citicorp Investment Services in Long Island City, New York. In the years since, he’s registered with firms like Wachovia Securities, UBS Financial Services, Wells Fargo, and LPL Financial. According to his BrokerCheck record, he joined NewEdge Advisors as an investment adviser in 2019. He has remained at the firm’s Arlington Heights, Virginia office since. With 29 years of experience as a securities industry professional, he has completed seven industry exams, including the Series 10 and the Series 63. 

Call MDF Law About Your Broker Fraud Complaint

Have you lost funds on investments recommended by Rich Ceffalio? The investment fraud attorneys at MDF Law may be able to help you recover damages. We accept cases on contingency—clients only pay a fee if they collect a recovery—and offer free consultations nationwide. Call 800-767-8040 to speak with one of our experienced lawyers today.