March, 2025 | Based in Arlington Heights, IL
Looking to recover investment losses caused by financial advisor misconduct? Take immediate action to protect your rights. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation. Time limitations apply to investment fraud claims, so don’t delay.
Critical Information About Richard Allen Ceffalio Jr
- Full Name: Richard Allen Ceffalio Jr
- CRD Number: 2619565
- Current Status: Not currently registered (terminated May 2024)
- Last Known Location: Arlington Heights, IL
- Former Employers: LPL Financial LLC (2019-2024), Wells Fargo Clearing Services (2012-2019), UBS Financial Services (2008-2012)
- Registration History: Previously registered in multiple states
- Disclosure Events: 5 customer disputes (4 pending), 1 employment termination
- FINRA BrokerCheck: Multiple serious allegations including forgery, unauthorized trading, and unsuitable investment recommendations
- Current Legal Status: Facing federal lawsuit alleging over $3.5 million in damages
- Recovery Potential: Investors may seek recovery through FINRA arbitration or civil litigation
A Disturbing Pattern of Alleged Misconduct
Richard Allen Ceffalio Jr, a former financial advisor most recently affiliated with LPL Financial LLC in Arlington Heights, Illinois, is currently at the center of multiple serious fraud investigations. After nearly three decades in the financial services industry, Ceffalio’s career came to an abrupt end in May 2024 when LPL Financial terminated his employment following allegations of soliciting loans from clients without firm approval and submitting trade corrections containing inaccurate information.
Our law firm’s investigation into Ceffalio’s professional activities has uncovered a disturbing pattern of alleged misconduct spanning multiple firms and affecting numerous investors. The allegations against Ceffalio are particularly alarming, including claims of document forgery, misrepresentation, and unsuitable investment recommendations that may have caused substantial losses for trusting clients.
Detailed Analysis of the Allegations Against Ceffalio
Federal Court Allegations of Forgery and Fraud
One of the most serious claims against Ceffalio is currently being litigated in the U.S. District Court for the Northern District of Illinois (Case 24-CV-04322). According to court documents, Ceffalio allegedly forged clients’ signatures on line of credit agreements in March 2022 and then directed the funds outside of the clients’ control. This lawsuit seeks damages of approximately $3.53 million and represents one of several pending legal actions against the former advisor.
The alleged forgery case is particularly troubling as it suggests not merely unsuitable investment recommendations but potentially criminal conduct. If proven, these allegations would constitute serious violations of securities laws and FINRA rules governing professional conduct in the industry.
FINRA Arbitration Claims
In addition to the federal lawsuit, Ceffalio faces multiple FINRA arbitration claims (including cases 24-02027, 24-01188) from former clients. These arbitration proceedings contain allegations that:
- Between 2012 and 2023, Ceffalio managed client accounts in an unsuitable manner and misrepresented the total value of clients’ accounts.
- Ceffalio made unsuitable investment recommendations causing clients’ accounts to underperform and sustain substantial losses.
- Clients received misinformation about their annuities that caused them to overspend from their accounts.
These allegations span Ceffalio’s employment at multiple firms, suggesting that the alleged misconduct wasn’t isolated to a particular period or employer. This pattern raises serious questions about supervision failures at LPL Financial, Wells Fargo, and potentially other firms that employed Ceffalio during the relevant timeframes.
Termination from LPL Financial
On May 31, 2024, LPL Financial terminated Ceffalio’s employment following allegations that he had solicited loans from customers without proper notice to or approval from the firm. Additionally, LPL cited concerns regarding trade corrections containing inaccurate information as grounds for termination.
This termination represents a significant black mark on Ceffalio’s record and raises important questions about the adequacy of LPL’s supervision. As a broker-dealer, LPL had a duty to supervise its representatives and implement reasonable systems to detect and prevent misconduct. The alleged misconduct, particularly loan solicitation from clients, should have raised red flags within the firm’s compliance systems.
Red Flags: Warning Signs Investors Should Have Recognized
While financial advisors like Ceffalio often build strong relationships of trust with their clients, there were several potential warning signs that investors might have noticed:
1. Excessive Concentration in Complex Products
Several complaints mention variable annuities, which are complex investment products that often carry high fees, surrender charges, and complicated structures. While these products can be appropriate for some investors, they are frequently misused due to the high commissions they generate for advisors.
Warning signs include:
- Recommendations to invest significant portions of a portfolio in annuities
- Pressure to replace existing annuities with new ones (known as “churning“)
- Difficulty understanding the fee structure or surrender penalties
2. Misrepresentations About Account Performance
Multiple complainants allege that Ceffalio misrepresented the total value of their accounts. This type of misrepresentation can prevent investors from making informed decisions about their financial future.
Potential red flags include:
- Account values that seem inconsistent with market performance
- Verbal assurances about account performance that don’t match written statements
- Reluctance to provide clear, written documentation of investment performance
3. Personal Loans and Unusual Financial Arrangements
Ceffalio’s termination from LPL Financial specifically mentioned soliciting loans from customers. This type of arrangement represents a serious conflict of interest and is typically prohibited by brokerage firms.
Investors should be wary when financial advisors:
- Request personal loans or investments in private ventures
- Suggest moving money outside normal investment channels
- Discourage clients from discussing certain investments with others
4. Document Irregularities
The allegations of forgery in the federal lawsuit point to perhaps the most serious form of misconduct. Any indication that an advisor is completing or altering documents without proper authorization should be an immediate cause for concern.
Legal and Regulatory Framework: How Advisors Must Behave
Financial advisors like Ceffalio are governed by various rules and regulations designed to protect investors:
FINRA Rule 2010: Standards of Commercial Honor
This fundamental rule requires brokers to “observe high standards of commercial honor and just and equitable principles of trade.” The allegations against Ceffalio, if proven, would represent clear violations of this basic ethical standard.
FINRA Rule 2111: Suitability
This rule requires that brokers have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer based on the customer’s investment profile. The claims of unsuitable investment recommendations directly implicate this rule.
FINRA Rule 2090: Know Your Customer
Brokers must use reasonable diligence to understand the essential facts concerning every customer. This understanding should inform all recommendations and ensure they align with the customer’s investment objectives, risk tolerance, and financial situation.
FINRA Rule 3240: Borrowing From or Lending to Customers
This rule generally prohibits registered persons from borrowing money from or lending money to customers unless the firm has written procedures allowing such arrangements and specific conditions are met. Ceffalio’s alleged solicitation of loans from customers would likely violate this rule.
SEC Rule 10b-5: Anti-Fraud Provisions
This Securities and Exchange Commission rule prohibits employing devices, schemes, or artifices to defraud in connection with the purchase or sale of securities. Allegations of forgery and misrepresentation potentially implicate this rule.
Options for Victims Seeking Recovery
If you’ve suffered losses while working with Richard Allen Ceffalio Jr, several potential avenues for recovery exist:
1. FINRA Arbitration
FINRA provides an arbitration forum specifically designed to resolve disputes between investors and brokers. Benefits of FINRA arbitration include:
- Typically faster and less expensive than court litigation
- Arbitrators often have industry expertise
- Less formal than court proceedings
- Binding decisions
It’s important to note that FINRA arbitration claims generally must be filed within six years of the events giving rise to the dispute.
2. Civil Litigation
As demonstrated by the pending federal lawsuit against Ceffalio, investors can also pursue recovery through the court system. This approach may be particularly appropriate in cases involving fraud allegations or where other non-securities claims exist.
3. Firm Liability for Supervision Failures
Brokerage firms have a duty to supervise their registered representatives. When advisors like Ceffalio engage in misconduct, their employing firms may be held liable for failing to detect and prevent such behavior. Both LPL Financial and Wells Fargo Clearing Services are named in pending complaints, suggesting investors are pursuing this avenue of recovery.
Practical Steps for Affected Investors
If you’ve worked with Richard Allen Ceffalio Jr and are concerned about your investments, consider these immediate steps:
1. Secure Your Documents
Gather all relevant documents, including:
- Account statements and confirmations
- Emails and other communications
- Investment applications and agreements
- Notes from meetings or calls with Ceffalio
2. Request Complete Account Information
Request comprehensive account information from the brokerage firm, including:
- Complete transaction history
- Fee disclosures
- Account applications and agreements
3. Analyze Investment Suitability
Review your investments with an independent professional to determine if they were appropriate given your:
- Investment objectives
- Risk tolerance
- Financial situation
- Tax status
- Time horizon
4. Document Damages
Work with a financial expert to calculate potential damages, including:
- Direct investment losses
- Excessive fees or commissions
- Opportunity costs (what you could have earned in suitable investments)
- Tax consequences
5. Consult with a Securities Attorney
An experienced securities attorney can evaluate your potential claims, advise you on the statute of limitations, and recommend the best course of action for your specific situation.
How Our Investment Fraud Attorneys Can Help
Our law firm specializes in representing investors who have suffered losses due to financial advisor misconduct. Our attorneys have extensive experience with cases involving allegations similar to those made against Richard Allen Ceffalio Jr.
We offer:
Comprehensive Case Evaluation
Our team will thoroughly review your investment history, identify potential violations, and provide a clear assessment of your recovery options.
Expert FINRA Arbitration Representation
With deep experience in FINRA arbitration, our attorneys know how to effectively present your case and advocate for maximum recovery.
No Recovery, No Fee
We handle investment fraud cases on a contingency fee basis, meaning you pay nothing unless we recover money for you.
Access to Financial Experts
Our firm works with qualified financial experts who can analyze your portfolio, calculate damages, and provide expert testimony when needed.
Time is Critical in Investment Fraud Cases
Securities laws impose strict time limitations on bringing claims for investment fraud. In most cases, FINRA arbitration claims must be filed within six years of the events giving rise to the dispute. State securities laws may impose even shorter deadlines.
Given that some of the allegations against Ceffalio date back to 2012, prompt action is essential to preserve your legal rights. Delay could result in potentially valid claims becoming time-barred.
If you’ve experienced investment losses while working with Richard Allen Ceffalio Jr, don’t wait to seek professional advice. Our experienced investment fraud attorneys are ready to evaluate your situation and help you pursue the recovery you deserve. Call 800-950-6553 today or complete our online form to schedule your confidential, no-obligation consultation.
