Victor Lessinger Suspended by FINRA: Suitability Allegations
Victor Lessinger (CRD# 830821), formerly a broker registered with Colorado Financial Service Corporation, recommended unsuitable investments, according to a recent disciplinary action. MDF Law is investigating the former Boca Raton, Florida-based financial professional for similar conduct. If you have concerns about investments in your accounts, contact us for a free consultation.
To learn more about the allegations against Mr. Lessinger, continue reading this post. The information below is based on a November 20, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Sanction Details Closed-End Fund Allegations
On October 28, 2024, FINRA released a Letter of Acceptance, Waiver, and Consent (# 2023077597701) concerning Mr. Lessinger. According to the disciplinary action, he recommended that a retail customer invest in three closed-end funds. The investments in question “resulted in a concentration of at least 28%, 23%, and 37% (respectively) of her net worth in these securities.” The customer in question was an 82-year-old woman with limited investment experience, income below $25,000, and a net worth of less than $99,999. The closed-end funds in question, meanwhile, involved significant risks, including the loss of principal.
As FINRA’s findings conclude, these recommendations were not in the customer’s best interest. Mr. Lessinger’s recommendations allegedly violated the SEC’s Regulation Best Interest as well as FINRA Rule 2010. The regulator suspended him from registering with any member firm for three months. It also ordered him to pay a fine of $5,000, as well as restitution exceeding $5,000.
Past Sanction Denied License Application
The 2024 disciplinary action against Mr. Lessinger is not the only one in his professional record. In 2007, the Ohio Division of Securities sanctioned him in an action that stemmed from allegations he did not have “good business repute.” As a result, the Division denied his application for a securities salesperson license in the state.
Why Did the SEC Sanction Victor Lessinger?
Two years before the Ohio Division of Securities sanctioned Mr. Lessinger, the Securities and Exchange Commission did too. This action stemmed from allegations that he failed in his supervisory duties. More specifically, it alleged that he authorized his firm to solicit penny stock transactions despite a prohibition against such. The SEC barred him from association with any broker or dealer in a supervisory capacity for two years.
FINRA: Broker Last Based in Boca Raton, Florida
Mr. Lessinger launched his career as a broker in 1976. That year, he registered with First Investor Corporation’s office in Edison, New Jersey. Over the following years, he worked with a variety of firms, including Preferred Securities, Vertical Capital Partners, and Brookstone Securities. He joined Colorado Financial Service Corporation’s Boca Raton office in 2012, remaining at the firm until 2023. With 44 years of experience as a broker, he has completed eight industry exams, including the Series 7 and the Series 8.
Investment Losses? Call MDF Law
Have you lost money on unsuitably risky investments recommended by Victor Lessinger? You have rights, including the right to pursue a recovery through the FINRA arbitration process. MDF Law’s experienced investment fraud attorneys have secured more than $100 million in recoveries for our clients. We take cases on contingency—clients only pay a fee if they successfully recover losses—and offer free consultations nationwide. Call 800-767-8040 today to speak with our team today.