{"id":3077,"date":"2014-08-14T00:00:00","date_gmt":"2014-08-14T04:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/"},"modified":"2017-12-22T14:21:36","modified_gmt":"2017-12-22T19:21:36","slug":"finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/","title":{"rendered":"FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges"},"content":{"rendered":"<\/p>\n<p>Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (\u201cNewport Coast\u201d) and some of its current and former registered representatives, accusing them of using margin and risky securities to artificially generate huge <a title=\"commissions\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">commissions<\/a> for themselves while wiping out most of their customers\u2019 investment capital.<\/p>\n<p>Newport Coast, a New York-based broker-dealer, by and through brokers Douglas Leone, Andre LaBarbera, David Levy, Antontio Costanzo, and Donald Bartlet, allegedly <a title=\"churned\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">churned<\/a> the accounts of twenty four customers &#8212; many of whom are retirees &#8212; causing more than $1,000,000 in losses to the investor-clients.\u00a0 \u201c<a title=\"churning\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">Churning<\/a>,\u201d as it is known in the industry, is the act of a broker who <a title=\"excessively\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">excessively<\/a> and needlessly engages in trading in a client\u2019s account primarily to generate <a title=\"commissions\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">commissions<\/a> for the broker on each trade without regard for the client\u2019s financial well-being.\u00a0 <a title=\"churning\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">Churning<\/a> is an illegal and unethical practice that <a title=\"violates\" href=\"https:\/\/www.silverlaw.com\/conflicts-of-interest.html\"  target=\"_blank\">violates<\/a> SEC rules and securities laws.\u00a0 The brokers are also purported to have created new account forms for their victimized clients that misstated the clients\u2019 net worth, investment experience, and objectives; and two of the brokers (Levy and Costanzo) attempted to dissuade several customers from cooperating with FINRA\u2019s investigation into the matter &#8212; all of which was done to cover up the illegality of the brokers\u2019 <a title=\"excessive\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">excessive<\/a> activity in the client accounts.<\/p>\n<p>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.\u00a0 To the contrary, the firm\u2019s managers, supervisors, and the former President of the company allegedly profited through overrides on the <a title=\"churned\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\"  target=\"_blank\">churned<\/a> accounts.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/\"  title=\"Continue Reading FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (\u201cNewport Coast\u201d) 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\u2019 investment capital. Newport Coast, a New York-based [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[589,605,595,606,609,580],"tags":[301,341,397,503,534,315,428,456],"class_list":["post-3077","post","type-post","status-publish","format-standard","hentry","category-churning-2","category-finra-regulatory-notice","category-investment-fraud","category-margin","category-sales-practice-violations","category-stockbroker-misconduct","tag-churning","tag-commissions","tag-excessive-trading","tag-finra-regulatory-notice-2","tag-margin-calls","tag-securities-fraud","tag-securities-violations","tag-stockbroker-misconduct-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges &#8212; Securities Arbitration Lawyers Blog &#8212; August 14, 2014<\/title>\n<meta name=\"description\" content=\"Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (\u201cNewport Coast\u201d) and some of its &#8212; August 14, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges &#8212; Securities Arbitration Lawyers Blog &#8212; August 14, 2014\" \/>\n<meta name=\"twitter:description\" content=\"Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (\u201cNewport Coast\u201d) and some of its &#8212; August 14, 2014\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Silver Law Group\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges &#8212; Securities Arbitration Lawyers Blog &#8212; August 14, 2014","description":"Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (\u201cNewport Coast\u201d) and some of its &#8212; August 14, 2014","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/","twitter_card":"summary_large_image","twitter_title":"FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges &#8212; Securities Arbitration Lawyers Blog &#8212; August 14, 2014","twitter_description":"Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (\u201cNewport Coast\u201d) and some of its &#8212; August 14, 2014","twitter_misc":{"Written by":"Silver Law Group","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/#article","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/"},"author":{"name":"Silver Law Group","@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"headline":"FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges","datePublished":"2014-08-14T04:00:00+00:00","dateModified":"2017-12-22T19:21:36+00:00","mainEntityOfPage":{"@id":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/"},"wordCount":395,"keywords":["churning","commissions","excessive trading","finra regulatory notice","margin calls","securities fraud","securities violations","stockbroker misconduct"],"articleSection":["Churning","FINRA Regulatory Notice","Investment Fraud","Margin","sales practice violations","Stockbroker Misconduct"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/","url":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/","name":"FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges &#8212; Securities Arbitration Lawyers Blog &#8212; August 14, 2014","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/#website"},"datePublished":"2014-08-14T04:00:00+00:00","dateModified":"2017-12-22T19:21:36+00:00","author":{"@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"description":"Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (\u201cNewport Coast\u201d) and some of its &#8212; August 14, 2014","breadcrumb":{"@id":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.silverlaw.com\/blog\/finra-hits-newport-coast-securities-and-its-representatives-with-churning-charges\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.silverlaw.com\/blog\/"},{"@type":"ListItem","position":2,"name":"FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges"}]},{"@type":"WebSite","@id":"https:\/\/www.silverlaw.com\/blog\/#website","url":"https:\/\/www.silverlaw.com\/blog\/","name":"Securities Arbitration Lawyers Blog","description":"Published by Securities Arbitration Lawyers \u2014 Silver Law Group","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.silverlaw.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752","name":"Silver Law Group","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/9eb0a691642ae95c68ee1c45b5f50f35bae76a41f3d9f861c7bfd40c87661746?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9eb0a691642ae95c68ee1c45b5f50f35bae76a41f3d9f861c7bfd40c87661746?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9eb0a691642ae95c68ee1c45b5f50f35bae76a41f3d9f861c7bfd40c87661746?s=96&d=mm&r=g","caption":"Silver Law Group"}}]}},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts\/3077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/comments?post=3077"}],"version-history":[{"count":4,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts\/3077\/revisions"}],"predecessor-version":[{"id":5572,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts\/3077\/revisions\/5572"}],"wp:attachment":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/media?parent=3077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/categories?post=3077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/tags?post=3077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}