Roman T. Luckey- Former Newport Coast Broker Sanctioned for Failing to Detect Churning and Abuse of Customer Accounts

Roman T. Luckey- Former Newport Coast Broker Sanctioned for Failing to Detect Churning and Abuse of Customer Accounts 150 150 Robert Rex, Esq.

August 14,  2015- Long Beach, CA

Roman Tyler Luckeysubmitted an Offer of Settlement to  the Financial Industry Regulatory Authority (FINRA) to resolve allegations that as Manager of Trading for Newport Coast Securities (formerly Grant Betting, Inc. ) he never focussed his supervisory responsibilities and  failed to supervise Newport brokers who excessively traded, churned accounts and made unsuitable recommendations to customers.

According to FINRA filings, Luckey failed to take any meaningful actions to address the misconduct and to ensure that the brokers he was charged with supervising acted in a manner that was compliant with applicable laws, regulations and industry rules. FINRA pleadings indicate that the customer accounts at issue should have attracted scrutiny because:

  • cost to equity ratios were high, sometimes over 100%
  • extraordinary in and out trading
  • turnover rates in excess of 100%
  • highly margined accounts that were overly concentrated in one security
  • large number of trades where commissions exceeded 3 and sometimes 4%
  • riskless principal and agent trading in same account
  • nearly all of the accounts exhibited large losses

AWC No. 2012030564701

Luckey  was  assessed a deferred fine of $15,000 and suspended from acting in a principal capacity for 14 months.

According to FINRA records, Luckey was registered with Newport Coast Securities  from 7/2008-11/2012  Prior to that he was registered with C.K. Cooper & Company  from 9/2007-7/2008. FINRA cancelled the license of C.K. Cooper & Company in October 2013. Luckey is not currently registered.

If you believe your brokerage account has been excessively traded or otherwise abused by your broker contact us to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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