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New York Financial Advisor John Santariello Involved in $307,042 Dispute Over Churning

John Santariello (CRD#: 5746158), formerly a registered representative with Arive Capital Markets (CRD#: 8060) in Coram, New York, is currently involved in a customer dispute in which a client alleges he engaged in churning, traded excessively, and recommended unsuitable investments, according to his BrokerCheck report accessed on October 1, 2019. The client is seeking $307,042 in damages. John Santariello is not currently registered as a broker.

John SantarielloWhat is churning? Churning occurs when your broker trades securities in your portfolio more often than is necessary. In this way, brokers generate excessive commissions. Churning is a violation of U.S. securities regulations and Financial Industry Regulatory Authority (FINRA) rules. How can you avoid churning? Consider choosing a brokerage account that allows you to compensate your broker with a percentage (say 1%) of the portfolio value. That way, when the value of your portfolio goes up, your broker makes money too. To avoid investment fraud, it’s important to stay informed about activity in your investment accounts and bring any concerns to FINRA or experienced securities attorneys like those of Fitapelli Kurta.

On November 11, 2014, John Santariello was involved in a customer dispute in which a client alleged “account losses covering [the] period 2-12 through May 2014, due to unsuitable excessive trading of high-risk speculative stocks.” The client originally sought $100,000 in damages, but the matter was settled for $30,000.

In addition to his work with Arie Capital Markets (CRD#: 9060), over his eight-year career in the securities industry, John Santariello has worked for six brokerage firms:

  • Cape Securities (CRD#: 7072) of Lake Grove, New York
  • Joseph Gunnar & Co. LLC (CRD#: 24795) of Melville, New York
  • Wilmington Capital Securities, LLC (CRD#: 133839) of Melville, New York
  • National Securities Corporation (CRD#: 7569) of Miller Place, New York
  • C. Ward Financial (CRD#: 145135) of Ronkonkoma, New York

If John Santariello was your broker or if you have questions about churning or unsuitable investments, please don’t hesitate to contact a securities attorney. Call (877) 238-4175 or email info@fkesq.com for your free consultation with the securities attorneys of Fitapelli Kurta.

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