August 14, 2015- Long Beach, CA
Roman Tyler Luckey, submitted 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.
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