A man whose account was churned down to $10,000 was awarded both compensatory damages of $375,000 for his original investment plus an additional $700,000 in punitive damages. The client, Herbert W. Voss, was awarded $1.075 million by FINRA.
Mr. Voss’ attorney was quoted as saying that “It was like the Wild, Wild West in terms of lack of controls at the firm. It was unconscionable.”
Legend Securities, expelled by FINRA in April of 2017, was also known as Marlin Trading, Inc. and SPC Securities, Inc. The company’s record lists 32 disclosures. Many of these are similar to Mr. Voss as well as multiple fines and censures.
FINRA held the firm and firm broker Danard Warthen Brown liable for $350,000 in compensatory damages. Brown and Frank Philip Fusco, the firm’s chief compliance officer, were also held liable for $25,000 in compensatory damages.
Additionally, Mr. Voss made claims against Legend chief executive Anthony Fusco, Salvatore Charles Caruso and Michael Salvatore Stanton. However, although Mr. Voss has reached an agreement with Stanton, he cases against Anthony Fusco and Mr. Caruso were stayed. After Mr. Voss filed his arbitration claim in April, both men declared bankruptcy. With the bankruptcy cases and the firm out of business, Mr. Voss may have a difficult time collecting on his award.
Brokers Brown and Fusco are currently employed at other broker firms. Brown, now employed at Joseph Stone Capital, also has three civil judgements and a tax lien disclosures worth $22,654 as well.
Did You Invest With Legend Securities?
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