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Articles Tagged with Unauthorized Trading

Boca-Raton-Financial-Advisor-Robert-Child-Faces-Yet-Another-Customer-Dispute-300x199Erik Patrick Pica (CRD #4829533) is a currently registered broker employed with Joseph Stone Capital L.L.C. (CRD #159744) of New York, NY. His previous employers include Global Arena Capital Corp (CRD #16871, expelled by FINRA on 4/1/2016), First Midwest Securities, Inc. (CRD #21786), Chicago Investment Group, LLC (CRD #11853, expelled by FINRA on 9/14/2010) and Eastbrook Capital Group LLC (CRD #39781, expelled by FINRA on 9/23/2009), all of New York City. He has been in the industry since 2004.

Pica is the subject of seven disclosures, all customer disputes. The first one was filed on 5/10/2018, alleging “unauthorized trade of 6000 shares Rite Aid Corp unauthorized trade of 550 shares Valeant Pharmaceutical.”  The client requests damages of $7,613.65. This case is currently pending.

The next customer dispute was filed on 5/4/2018, with allegations of negligence, over-concentration and suitability.” This client requests damages of $293,000. This case is also currently “pending.”

Roy Joseph Failla (CRD #2786551) is a registered broker who is currently employed with First Standard Financial Company LLC (CRD #168340) of Red Bank, NJ. His previous employers include Alexander Capital, L.P. (CRD #40077), Brookstone Securities, INC. (CRD #13366, expelled by FINRA on 10/09/2012) and J.P. Turner & Company, L.L.C. (CRD #43177), all of Staten Island, NY. He has been in the industry since 1998.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/FINRA-Permanently-Bars-Honetta-C.-Kao-After-Allegations-of-Unauthorized-Trading-and-Mishandled-Accounts-300x200.jpgA customer dispute filed on 5/29/2018 alleges that Failla engaged in “unauthorized trading and unsuitable investments,” and requests damages of $1,500,000. Failla denies the allegations.

Two of Failla’s previous disputes were filed during Failla’s tenure at Brookstone Securities. The first, filed on 2/19/2010, alleged “excessive and unauthorized trading, fraud, breach of fiduciary duty, misrepresentation and unsuitability.”  This customer requested damages of $299,817.48, and the case settled for $75,000. The second case, filed on 5/25/2010, alleged “churning, unsuitable trades and misrepresentation.”  The client requested damages of $417,000.00, and the case was settled for $40,000.

Raymond Adam Menna (CRD #1918097) is a registered broker and investment advisor currently employed with Planmember Securities Corporation (CRD #11869) of Farmingville, NY. His previous employers include Prime Capital Services, Inc. (CRD #18334) and Mutual Capital Corp. (CRD #106813), both of Ronkonkoma, NY. He has been in the industry since 1989.

Menna has a total of three disclosures, one regulatory and two customer disputes.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/FINRA-Permanently-Bars-Honetta-C.-Kao-After-Allegations-of-Unauthorized-Trading-and-Mishandled-Accounts-300x200.jpgOn 11/17/2017, a customer filed a dispute alleging that Menna engaged in unauthorized trading, unsuitable investing, misrepresentation and material omissions, and requested damages of $1,000,000. All parties agreed to a settlement of $260,000.00 to avoid the associated costs of litigation. The agreement included stipulations that there was no admission or denial of the charges, and all allegations were denied.

James Edward Lyons (CRD #1020397) is a former broker and investment advisor who was last registered with Raymond James & Associates, Inc. (CRD #705) of Shreveport, LA. He was previously employed by Morgan Keegan & Company, Inc. (CRD #4161), also of Shreveport, and Capitol Securities Group, Inc. (CRD #8094). No current employment information is available. He has been in the industry since 1981.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/FINRA-Permanently-Bars-Honetta-C.-Kao-After-Allegations-of-Unauthorized-Trading-and-Mishandled-Accounts-300x200.jpgLyons is the subject of a current customer dispute with multiple claimants alleging a number of complaints, including unauthorized trading, fraudulent concealment, overconcentration, unsuitability and others. The actions in question occurred between 2001 and 2017. The damages requested total $5,000,000. The case is currently pending.

A similar complaint was filed on 04/29/2016, with many of the same allegations from 2/17/2011 – 4/29/2016. The client alleges unauthorized trading, churning, fraudulent omissions, suitability, and securities law violations at both the federal and state (Louisiana) level. The client requested damages of $1,200,000, and the case was settled for $400,000.

Ronald Harris Rothchild (CRD #4491932) is a registered broker and investment advisor currently employed with National Securities Corporation (CRD #7569 of Melville, NY.) His previous employers include Raymond James Financial Services, Inc. (CRD #6694) of Garden City, NY, Wells Fargo Advisors, LLC (CRD #19616) of Melville, NY, and David Lerner Associates, Inc. (CRD #5397) of Syosett, NY. He has been in the industry since 2002.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200Rothchild is the subject of eight disclosures, the most recent of which was a customer dispute filed on 7/30/2018. In it, the client alleges “breach of contract, negligence, unsuitability, breach of fiduciary duty.”  Damages requested are $100,000. This case is listed as “pending.”

Two previous customer disputes have been settled. The first, filed on 3/28/2018, alleges that from 7/26/2011 through 4/11/2016, Rothchild misrepresented certain investments that were unsuitable for her objectives. The client also alleges that her risk tolerance and investment objectives were incorrectly documented on her updated account paperwork.  This customer requested damages of $149,236.86, and the case was settled for $75,000.

Daniel John Flores (CRD #2908027) is a previously registered broker and investment advisor whose last employer was Woodbury Financial Services, Inc. (CRD #421) of Appleton, WI. His previous employers include Princor Financial Services Corporation (CRD #1137) of Neenah, WI, Gunnallen Financial, Inc (CRD #17609) and Sii Investments, Inc. (CRD #2225), both of Appleton. No current employment information is available. He has been in the industry since 1997.

Flores has three disclosures in his record, all from 2018. On 4/16/2018, he was discharged from Woodbury for engaging in an unapproved financial transaction with a client.”  No additional information is available for this case.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/FINRA-Permanently-Bars-Honetta-C.-Kao-After-Allegations-of-Unauthorized-Trading-and-Mishandled-Accounts-300x200.jpgOn 7/27/2018, FINRA reported that Flores failed to respond for a request for information. Two letters were sent to Flores on 7/27/2018, and 8/20/2018, respectively, with no response. On October 30, 2018, FINRA barred Flores indefinitely and in all capacities from any association with a FINRA member.

Cory Bataan (CRD #2755223) has been employed with Emoire Asset Management Company since April 2008. Previous employment includes Empire Asset Management Company from April 2008 to August 2012, Ameritas Investment Corp. from December 2007 to April 2008 and Joseph Stevens & Company, Inc. from October 1996 to July 2001.

According to the FINRA BrokerCheck, there have been complaints against Mr Bataan.

Churning-Other-Allegations-Made-Against-Broker-Michael-Doyle-300x200In 2015, while employed by Aegis Capital Corp., Claimant alleges unsuitable recommendations and excessive fees & commissions.  Complaint was settled for $25,000.00.

Nick Son (CRD #1178523) has been employed with Aegis Capital Corp since August 2014 and was also registered with Aegis from March 2010 to April 2011.  Previous employment includes Alexander Capital, L.P. from March 2012 to August 2014, WTS Proprietary trading Group LLC from December 2011 to June 2012, Gunnallen Financial, Inc. form July 2002 to March 2010, Investprivate, Inc. from June 2001 to July 2002, Josephthal & Co., Inc. from July 1998 to May 2001, JW Charles Securities, Inc. from May 1997 to August 1997, Whale Securities Co., L.P. from September 1996 to May 1997 and State Capital Markets Corporation from December 1995 to September 1996.

According to the FINRA BrokerCheck, there have been complaints against Nick Son.

Margin-Account-Guidelines-300x200In 1996, while employed by State Capital Markets Corporation, Client alleges the stock offering from Cable and Fun Tyme were not registered in Texas; The sale of non-registered stock is a violation of Texas State securities Act 7A and is therefore illegal.  Complaint was settled for $14,500.00.

Jonathan William Iraggi (CRD #5857254) is a former registered broker whose last employer was National Securities Corporation (CRD #7569) of Morganville, NJ. His previous employers include Garden State Securities, Inc. (CRD #10083) of Red Bank, NJ, Spartan Capital Securities, LLC (CRD #146251) and Portfolio Advisors Alliance, Inc. (CRD #101680) of New York, NY.  No current employment information is available. He has been in the industry since 2011.

David-Ledoux-Fined-and-Suspended-by-FINRA-After-Failing-to-Disclose-Liens-on-His-Registration-300x200Iraggi is the subject of four disclosures, the most recent a disciplinary action by FINRA, as well as one employment discharge and two denied customer disputes. In the FINRA action, filed on 8/23/2018, Iraggi failed to notify his employer firm, Garden State Securities, that he had verbal authorization to exercise discretion in three customer accounts. Iraggi did not obtain written authorization from the clients, nor written authorization from the firm to service the accounts on a discretionary basis.

Later, when filling out an annual compliance questionnaire in December of 2016, Iraggi failed to disclose to the firm that he had exercised discretion with a customer’s account, answering “no” when he actually had. Iraggi was fined $5,000 and a 30-day suspension from any association with a FINRA member firm, consented to the findings and signed a letter of Acceptance, Waiver & Consent (AWC.)

The Silver Law Group in collaboration with the Law Firm of David Chase recently filed a FINRA arbitration claim on behalf of a legally blind 86-year old customer against Moloney Securities Co. and its broker, Joseph Weinrich, which alleges counts of unsuitability, unauthorized trading and churning, and seeks the recovery of his investment losses.

The arbitration complaint alleges that, over the course of at least a five-year period, Weinrich made unsuitable investment recommendations, including oil and gas master limited partnerships, inconsistent with his elderly customer’s financial situation and stated investment goals, which caused significant account losses.  The complaint further alleges that Weinrich excessively traded or “churned” the account, which was on margin, to improperly generate significant fees and commissions, and engaged in unauthorized trading.  Due to Weinrich’s misconduct, and Moloney Securities Co.’s failure to reasonably supervise, as alleged by the complaint, the customer suffered losses of over $450,000, and paid significant commissions and margin interest.

Unauthorized trading occurs when a stockbroker facilitates a transaction without the permission of the customer in a non-discretionary account. 

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