New York Broker Allegedly Cost Customers Six-Figure Losses, Trading Costs, and Commissions
The Financial Industry Regulatory Authority (FINRA) has suspended Spartan Capital Securities financial advisor James Robert Pecoraro for nine months. FINRA ordered him to pay a $10K penalty and nearly $69K restitution for allegedly excessively unauthorized trading in customers’ accounts. The New York broker consented to the sanctions without denying or admitting to the findings.
According to the self-regulatory organization (SRO), Pecoraro recommended to certain clients a pattern of very costly, high-velocity trading that involved him making frequent stop loss orders, resulting in the liquidation of securities positions. At this point, he would allegedly recommend new purchases to the investors. FINRA said these trades were excessive and unsuitable for the investors, given their investing profiles. The trades cost them investment losses of over $166K and total trading costs of more than $184K, including over $165K in commissions.
Our New York broker misconduct attorneys are looking into claims of investor losses involving James Pecoraro, who has worked in the industry for twenty-two years. Other firms where he was a registered representative include SW Financial, Primary Capital, Rockwell Global Capital, Prestige Financial Center, JP Turner & Co., Brundyn Securities, LH Ross & Co., Harrison Securities, and GBI Capital Partners. He has been a Spartan Capital broker since 2019. This is not the first time that Pecoraro has been accused of excessive unauthorized trading, which can lead to additional commissions for a financial advisor.
According to James Pecoraro’s CRD, he has nineteen disclosures on record, which include:
February 2019: A negligence and unsuitability claim was settled for $36K.
June 2017: This breach of the fiduciary case was resolved with a $13,500 settlement
August 2010: FINRA suspended Pecoraro for 30 days over allegedly excessive trading allegations.
April 2008: This unauthorized trading case was settled for $55K.
December 2003: Another unauthorized trading case with nearly $234K in damages. Pecoraro eventually settled with claimants for about 15% of the total award.
Seasoned Excessive Trading Lawyers
Making unauthorized or excessive trades in a customer’s account, especially when they are unsuitable for the investor, is broker misconduct and can lead to significant investment and bond losses for the client.
If you worked with New York financial advisor James Pecoraro and you are wondering whether your investment and stock losses may be grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to pursue damages, contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today at (866) 901-3784. If you’re in New York and want to connect with our bond loss lawyer or stock loss attorney, call (716) 402-1521.