According to FINRA, Lucas Dylan Lichtman (CRD #5542092, Nanuet, New York) submitted an Offer of Settlement in which he was assessed a deferred fine of $7,500 and suspended from association with any FINRA member in any capacity for nine months. Without admitting or denying the allegations, Lichtman consented to the sanctions and to the entry of findings that he allegedly made unsuitable recommendations of an active trading investment strategy to his customer.
The findings stated that Lichtman allegedly recommended that his customer engage in the unsuitable active trading investment strategy, despite the fact that he purportedly failed to understand the risks of the investment strategy being recommended, or the impact the allegedly staggering commissions and fees generated by this active trading investment strategy would have on his customer’s account.
Lichtman purportedly did not have any reasonable basis to recommend such a strategy to his customer. As a result of the recommendations Lichtman and other representatives of his member firm made, 15 customer accounts allegedly paid over $1 million in commissions and fees.
Additionally, Lichtman purportedly did not know how to calculate or even understand cost-to-equity ratios and turnover rates, which are standard industry metrics used to measure whether an account is being excessively traded. Lichtman also allegedly did not understand the impact of trading and costs on his customer’s account and on the specific transactions recommended as part of an investment strategy.
The AWC further alleges that Lichtman did not conduct any due diligence into the active trading investment strategy he was recommending, and he allegedly never reviewed his customer’s account, either individually or collectively, to determine if the active trading investment strategy was successful or suitable for his customer.
Lichtman allegedly failed to perform any analysis of the active trading investment strategy’s costs, risks, potential benefits, volatility, or likely performance in a variety of market and economic conditions. The suspension is in effect from October 3, 2016, through July 2, 2017.
For FINRA’s full finding see FINRA Case #2014039091903.
According to FINRA Broker Check, Lichtman was registered with Caldwell International Securities in Englewood Cliffs, NJ from 04/2011 – 05/2016.
Brokerage firms are required to properly supervise all advisors they employ and to ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Lichtman’s former employer failed to properly supervise him, his employer may be held responsible for the losses in a FINRA arbitration claim.
If you suffered losses investing with Lucas Lichtman and Caldwell International Securities and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.