Francine Ann Lanaia – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Francine Ann Lanaia.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Francine Ann Lanaia. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Francine Lanaia
Francine Ann Lanaia is an Investment Adviser. Francine Ann Lanaia’s Central Registration Depository (CRD) number is 1415689 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1415689.
Click here to download a Detailed Audit Report for Francine Ann Lanaia.
Francine Ann Lanaia has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Francine Ann Lanaia’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 5/13/2022
- Disclosure Type: Civil
- Disclosure Resolution: Pending
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: Plaintiff Securities and Exchange Commission, for its Complaint against Defendants StraightPath Venture Partners LLC (the \SP Fund Manager\), StraightPath Management LLC (the \SP Adviser\), Brian K. Martinsen (\Martinsen\), Michael A. Castillero (\Castillero\), Francine A. Lanaia (\Lanaia\), and Eric D. Lachow (\Lachow\) (collectively, \Defendants\), alleges that from November 2017 through February 2022, Defendants raised at least $410 million from more than 2,200 investors. In exchange for their investments, investors received securities-interests in a subdivision (\Series\) of one of nine private investment funds (an \SP Fund\). Through both written materials and their vast network of sales agents, Defendants represented to investors that their investments would be directed to a specific Series that purportedly owned a specific number of shares of a specific private company that had the potential to undertake an initial public offering (\Pre-IPO Shares\). Defendants then told investors that their investment corresponded to a specific number of Pre-IPO Shares held by that Series. In essence, Defendants pitched the investment as a way for retail investors to own potentially lucrative, difficult-to-find Pre-IPO Shares that could not yet be purchased on a public stock exchange. Contrary to these representations, however, Defendants often were unable to obtain the number of Pre-IPO Shares they either claimed to already have or needed to back the interests they sold to investors. Rather than return the money investors paid them, Defendants kept it for themselves and continued to solicit new investors. Defendants also repeatedly told investors that each Series would be kept separate from all other Series, thus protecting their investments from losses from another Series backed by other Pre-IPO Shares that were less profitable. Instead, Defendants freely commingled investor funds, frequently transferring monies invested in one SP Fund to other SP Funds or to the SP Fund Manager in order to make purchases of Pre-IPO Shares or Ponzi-like payments back to earlier investors who wanted their money back. Defendants profited handsomely from their fraudulent scheme. Even as they told investors they were charging no upfront fees (or had waived the fees they could have charged), Martinsen, Castillero, Lanaia, and Lachow paid themselves more than $75 million and their sales agents nearly $48 million. Defendants also concealed from investors the continuing roles of Castillero and Lanaia, who were effectively barred from the brokerage industry but who operated behind the scenes to run the SP Funds and further the fraud. When the Commission staff sought copies of the emails of sales agents during its investigation, Castillero and Martinsen intentionally deleted them to avoid implicating themselves. In addition to the fraud, Defendants violated the securities and broker-dealer registration provisions of the securities laws. None of the interests in the SP Funds were registered with the Commission and no exemption from registration applied to these securities offerings because, among other reasons, Castillero was barred from the brokerage industry. Defendants ran an unregistered broker-dealer through their use of sales agents (including Lachow) who were not licensed brokers and to whom they paid commissions. As a result of the conduct described in this Complaint, Lanaia violated Sections 17(a), 5(a), and 5(c) of the Securities Act, Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206 and 207 of the Advisers Act and Rule 206(4)-8 thereunder. In addition, Lanaia is liable for aiding and abetting the SP Fund Manager’s and the SP Adviser’s violations of Securities Act Sections 5(a), 5(c), and 17(a), Exchange Act Sections 10(b) and 15(a) and Rule 10b-5 thereunder, the SP Adviser’s violations of Advisers Act Sections 206 and 207 and Rule 206(4)-8 thereunder, and Lachow’s violations of Exchange Act Section 15(a).
- Sanction Details ::
DISCLOSURE 2 –
- Event Date: 7/24/2018
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2017052475701
- DocketNumberAAO: 2017052475701
- Initiated By: FINRA
- Allegations: Respondent Lanaia failed to respond to FINRA request for information.
- Resolution: Letter
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All Capacities
- Duration: Indefinite
- Start Date: 10/29/2018
- Regulator Statement: Pursuant to FINRA Rule 9552(h) and in accordance with FINRA’s Notice of Suspension and Suspension from Association letters dated July 24, 2018, and August 17, 2018, respectively, on October 29, 2018, Lanaia is barred from association with any FINRA member in any capacity. Respondent failed to request termination of her suspension within three months of the date of the Notice of Suspension; therefore, she is automatically barred from association with any FINRA member in any capacity.
DISCLOSURE 3 –
- Event Date: 1/16/2018
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2017053382301
- DocketNumberAAO: 2017053382301
- Initiated By: FINRA
- Allegations: Without admitting or denying the findings, Lanaia consented to the sanction and to the entry of findings that she willfully failed to disclose (or timely disclose) three judgments on her Uniform Application for Securities Industry Registration or Transfer (Form U4). The findings stated that Lanaia was aware of these outstanding judgments but failed to update her Form U4 to disclose them within 30 days of receiving notice of each.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Suspension
- Sanction Details :: Registration Capacities Affected: All capacities
- Duration: three months
- Start Date: 1/16/2018
- End Date: 4/15/2018
- Sanctions: The settlement includes a finding that Lanaia willfully failed to disclose a material fact on a Form U4, and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission make her subject to a statutory disqualification with respect to association with a member. In light of Lanaia’s financial status, no monetary sanction has been imposed.
DISCLOSURE 4 –
- Event Date: 9/8/2017
- Disclosure Type: Financial
- Disclosure Resolution: Pending
- Disclosure Detail :: Type: Bankruptcy
DISCLOSURE 5 –
- Event Date: 4/10/2015
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: UNSUITABILITY, FRAUDULENT UNAUTHORIZED TRADES, ETC
- Damage Amount Requested: $757,287.00
- Arbitration Docket Number:
DISCLOSURE 6 –
- Event Date: 2/25/2013
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $142,854.00
- Judgment/Lien Type: Civil
- Broker Comment: NOTICE OF THE JUDGMENT WAS NOT RECIEVED UNTIL LATE MAY 2013 DUE TO IMPROPER SERVICE BY THE PLAINTIFF.
DISCLOSURE 7 –
- Event Date: 10/9/2012
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $37,674.00
- Judgment/Lien Type: Civil
- Broker Comment: Preparing to petition the court to re-open the case
DISCLOSURE 8 –
- Event Date: 7/17/2009
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2008015470201
- DocketNumberAAO: 2008015470201
- Initiated By: FINRA
- Allegations: NASD RULES 2110 AND 3010(A): RESPONDENT FRANCINE A. LANAIA FAILED TO ADEQUATELY SUPERVISE A REGISTERED REPRESENTATIVE, WHO ENGAGED IN UNSUITABLE TRADING IN CUSTOMERS’ ACCOUNTS.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $5,000.00 Sanctions: Suspension
- Sanction Details :: Registration Capacities Affected: ANY PRINCIPAL CAPACITY
- Duration: 20 BUSINESS DAYS
- Start Date: 8/17/2009
- End Date: 9/14/2009
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, LANAIA CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, SHE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY PRINCIPAL CAPACITY FOR 20 BUSINESS DAYS. THE SUSPENSION IS IN EFFECT FROM AUGUST 17, 2009 THROUGH SEPTEMBER 14, 2009.
- Broker Comment: WITHOUT ADMITTING OR DENYING THE FINDINGS THAT WHILE REGISTERED AS A GENERAL SECURITIES PRINCIPAL THROUGH TRIDENT PARTNERS, I FAILED TO SUPERVISE A REGISTERED REP THAT WAS NOT UNDER MY SUPERVISION.
DISCLOSURE 9 –
- Event Date: 1/31/2008
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: CLIENT ALLEGED UNAUTHORIZED TRADES RESULTED IN DAMAGES OF 50,000.00.
- Damage Amount Requested: $50,000.00
- Broker Comment: TRIDENT PARTNERS INVESTIGATED THE ALLEGATIONS OF UNAUTHORIZED TRADES AND DETERMINED THEY WERE IN FACT MARGIN SELL OUTS EFFECTED DUE TO CLIENTS FAILURE TO MEET MAINTENANCE CALLS. COMPLAINT WAS DENIED IN ITS ENTIRETY.
DISCLOSURE 10 –
- Event Date: 9/14/2007
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: I WAS ADDED TO A PENDING CLAIM ALLEGING THAT I FAILED TO SUPERVISE A FORMER BROKER
- Damage Amount Requested: $305,000.00
- Settlement Amount: $205,000.00
- Arbitration Claim File Detail: 07-00369
- Broker Comment: THIS MATTER WAS SETTLED TO AVOID THE COST OF CONTINUED LITIGATION.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- WINDSOR STREET CAPITAL, LP (CRD#: 34171) :: 4/17/2015 – 11/15/2017 :: NEW YORK, NY
- ALEXANDER CAPITAL, L.P. (CRD#: 40077) :: 4/23/2008 – 12/31/2013 :: NEW YORK, NY
- TRIDENT PARTNERS LTD. (CRD#: 41258) :: 5/15/2003 – 4/22/2008 :: HAPPAUGE, NY
- GLENN MICHAEL FINANCIAL, INC. (CRD#: 37912) :: 3/27/1996 – 2/10/2003 :: MELVILLE, NY
- INVESTORS ASSOCIATES, INC. (CRD#: 958) :: 10/13/1989 – 6/13/1996 :: HACKENSACK, NJ
- INDIVIDUAL’S SECURITIES LTD. (CRD#: 7279) :: 4/23/1986 – 5/17/1989
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Francine Ann Lanaia, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Francine Lanaia
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Francine Ann Lanaia – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (1415689) for the broker – Francine Ann Lanaia
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.