excessive trading

FINRA Bars Broker Mohamed Yassin

February 6, 2019 | Silver Law Group

Mohamed Racheed Yassin (CRD #1673281) is a previously registered broker and investment advisor whose last employer was National Securities Corporation (CRD #7569) of Westbury, NY. His previous employers include Morgan Stanley (CRD #149777) of Garden City, NY, UBS Financial Services Inc. (CRD #8174) of Uniondale, NY and Prudential Securities Incorporated (CRD #7471) of New York, NY. He has been in the industry since 1990.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200-300x200 Yassin is the subject of two FINRA disciplinary actions. The first, filed on 10/29/2018, suspends Yassin indefinitely for failure to comply with an arbitration award in a case of breach of promissory notes.

The earlier FINRA action on 8/21/2018 bars Yassin from any and all association with a FINRA member after he failed to respond to a request for information. FINRA then barred Yassin indefinitely from affiliation with any FINRA member effective 11/26/2018.

Justin Lopez Subject of Two Customer Disputes totaling over $5M

February 6, 2019 | Silver Law Group

Justin William Lopez (CRD #5162263) is a currently registered broker employed with J.P. Morgan Securities LLC (CRD #79) of Mineola, NY. His previous employers are Craig Scott Capital, LLC (CRD #155924, expelled by FINRA on 9/7/2017), Brookstone Securities, Inc. (CRD #13366, expelled by FINRA on 10/9/2012), both of Uniondale, NY, and JHS Capital Advisors, Inc. (CRD #112097) of Tampa, FL. He has been in the industry since 2006.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200-300x200 Lopez has two customer disputes in his FINRA record, the first of which was filed on 7/13/2018, alleging “unauthorized, unsuitable and excessive trading regarding the Equity Listed and Equity OTC investments.” This client requests damages of $5,563,792.00.

The second disclosure, filed on 5/09/2017, has similar allegations of “suitability and excessive trading regarding equity OTC and equity listed investments.” This client requests damages of $55,855.00.

AEGIS Capital Corp, Shadi T. Barakat

October 16, 2017 | Silver Law Group

Shadi T Barakat

CRD#5031281

Silver Law Group is investigating former New York, New York-based AEGIS Capital Corp broker Shadi T. Barakat after multiple clients filed FINRA complaints alleging excessive trading and churning. This complaint was settled in 2015 for $360,000.

David Sullivan Accused of Excessive Trading on More Than One Occasion

February 17, 2016 | Silver Law Group

David Sullivan Accused of Excessive Trading on More Than One Occasion on silverlaw.com

Other allegations include unsuitable investments and unauthorized trading.

In the securities industry for 28 years, New York broker David J. Sullivan is the subject of yet another customer complaint against his behavior as a securities broker.

This most recent complaint alleges that on or about September 2011 through approximately December 2014, while associated with J.P. Morgan, Sullivan effected numerous transactions in three accounts of a customer without obtaining prior written authorization from the customer and without J.P. Morgan having accepted the accounts as discretionary.

FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges

August 14, 2014 | Silver Law Group

Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (“Newport Coast”) and some of its current and former registered representatives, accusing them of using margin and risky securities to artificially generate huge commissions for themselves while wiping out most of their customers’ investment capital.

Newport Coast, a New York-based broker-dealer, by and through brokers Douglas Leone, Andre LaBarbera, David Levy, Antontio Costanzo, and Donald Bartlet, allegedly churned the accounts of twenty four customers — many of whom are retirees — causing more than $1,000,000 in losses to the investor-clients. “Churning,” as it is known in the industry, is the act of a broker who excessively and needlessly engages in trading in a client’s account primarily to generate commissions for the broker on each trade without regard for the client’s financial well-being. Churning is an illegal and unethical practice that violates SEC rules and securities laws. The brokers are also purported to have created new account forms for their victimized clients that misstated the clients’ net worth, investment experience, and objectives; and two of the brokers (Levy and Costanzo) attempted to dissuade several customers from cooperating with FINRA’s investigation into the matter — all of which was done to cover up the illegality of the brokers’ excessive activity in the client accounts.

According to FINRA, former Newport Coast supervisors Marc Arena and Roman Luckey saw what was transpiring but took no meaningful steps to curtail the misconduct. To the contrary, the firm’s managers, supervisors, and the former President of the company allegedly profited through overrides on the churned accounts.