Articles Tagged with Churning

Former Spartan Capital Securities Broker Accused of Unauthorized Trading 

The Financial Industry Regulatory Authority (FINRA) has barred ex-Spartan Capital Securities registered representative Marc Augustus Reda. The broker is accused of excessively trading in the accounts of clients. During his 22 years in the industry, Reda worked at 15 brokerage firms. He has at least 20 disclosures on his BrokerCheck record that go as far back as 2000.

Our New York securities attorneys offer free, no-obligation case consultations to current and former customers of Marc Reda who suffered severe investment losses. If you would like to explore your legal options, contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.

Ex-NY Worden Capital Broker Barred After Allegedly Charging $1.6M in Commissions

The Financial Industry Regulatory Authority (FINRA) has barred ex-Worden Capital Management and former SW Financial registered representative, William Nicholas Athas. This bar comes in the wake of allegations that he engaged in excessive trading in customer accounts. 

According to the self-regulatory organization’s (SRO’s) complaint, Athas controlled the trading in these accounts, deciding the frequency and volume of trades. He also allegedly made the calls regarding which securities to purchase and sell, as well as the quantity and timing of each transaction. William Athas’ customers usually would go by his recommendations.

68 Customers To Receive Restitution From NY-Based Broker-Dealer, Aegis Capital 

The Financial Industry Regulatory Authority (FINRA) has sanctioned Aegis Capital, which will pay about $2.8M for the excessive and unsuitable trading that allegedly took place in dozens of customers’ accounts. 

Of this amount, $1.7M in restitution will go to 68 customers who were potentially harmed. The remaining $1.1M is a fine the broker-dealer will pay for related supervisory violations involving Aegis brokers Roberto Birardi and Joseph Giordano

FINRA Barred New York Financial Advisor Following Unsuitability & Churning Allegations

If you have suffered investment losses while working with ex-Worden Capital Management broker Christ Elias Baltas, you may be able to pursue damages by filing a Financial Industry Regulatory Authority (FINRA) arbitration claim. 

Baltas, who was based out of Melville, New York, is currently named in two pending customer disputes in which the claimants are seeking more than $614K in damage. FINRA barred him in 2020.  

SRO Was Investigating Trading Activity in Customers’ Accounts

The Financial Industry Regulatory Authority (FINRA) has barred Salvatore Pizzimenti from the industry. The ex-Worden Capital Management broker was under investigation for trades made in customers’ accounts. The industry bar came after Pizzimenti refused to give testimony in the self-regulatory organization’s (SRO’s) probe into the allegations.

Salvatore Pizzimenti, a former New York broker, has six disclosures on his BrokerCheck record. Aside from the bar, the other five are customer disputes.

Worden Capital Management’s Settlement Includes $1.2M in Customer Restitution

In December 2020, Worden Capital Management, a New York-based broker-dealer, arrived at an over $1.5M settlement with the Financial Industry Regulatory Authority (FINRA) over excessive trades made by the firm’s registered representatives. 

The self-regulatory organization (SRO) contends that from January 2015 to October 2019, the New York brokerage firm did not have the kind of supervisory system in place that would have allowed it to “achieve compliance” with rules having to do with churning and excessive trading.

Florida Pinnacle Investments Broker is Named in Two Pending Customer Disputes 

Paul Robert DiPietro, a broker with Pinnacle Investments in Boca Raton, has been named in at least 10 customer complaints over the 12 years. Two of these investor claims are recent and pending. 

In South Florida, our Boca Raton securities fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are speaking to current and former customers of Paul DiPietro throughout the United States who have suffered significant investment losses. 

Ex-New Hampshire Governor is Suing For Damages 

The New Hampshire Bureau of Securities Regulation is looking into allegations brought by the state’s former governor, Craig Benson, who is accusing ex-Merrill Lynch brokers Dermod Cavanaugh and Charles Kenahan of churning his account and causing over $50M in damages that with market adjustments, he claims, is now over $100M. Benson filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against the broker-dealer and the two men.

Merrill Lynch is a Bank of America (BAC) subsidiary. Churning is when a broker makes excessive trades in a customer’s account in order to earn commissions.

Former LifeMark Securities Broker Gets Banned By FINRA 

If you are an investor who suffered losses while Stephen Carver handled your investments and wish to file an investor claim, our broker misconduct attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) want to talk to you. 

Carver, who most recently was a LifeMark Securities broker and before that a Cetera Advisors financial representative — Cetera and LifeMark both fired him — was just barred by the Financial Industry Regulatory Authority (FINRA). 

Morgan Stanley Ordered To Pay Over $300K In Fines And Restitution

Secretary of the Commonwealth of Massachusetts, William Galvin, is ordering Morgan Stanley (MS) to pay a $200K fine, as well as $182K in restitution to four customers who suffered losses while working with former broker Justin E. Amaral. 

The ex-Morgan Stanley financial advisor was barred by the Financial Industry Regulatory Authority (FINRA) in 2015. 

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