FINRA Investigates Douglas Leone – Allegations of Excessive Trading, Unsuitable Investments
According to the Financial Industry Regulatory Authority (FINRA) on Tuesday, the regulator has barred New York Financial Advisor Douglas Anthony Leone Respondent from associating with any FINRA member firm in any capacity for failing to attend an on-the-record interview during an investigation.
Enforcement reportedly initiated its investigation into Leone in 2016 after learning of possible unsuitable recommendations and excessive trading in multiple customers’ accounts, according to the Default Decision on April 23.The investigation reportedly led to the filing of the Complaint in this matter.
According to his FINRA BrokerCheck report, Leone was registered with Salomon Whitney Financial in Melville, NY from March 2013 until March 2017. Prior to that, he was affiliated with Newport Coast Securities in New York, NY, from October 2008 until March 2013.
Leone has 7 customer disputes listed on his broker report. Allegations include misrepresentation, excessive trades, unauthorized trades and unsuitable investments, among others.
Failure to Supervise
The White Law Group is investigating potential claims involving the liability Leone’s employers may have for failure to properly supervise him.
Brokers are prohibited from engaging in underhanded businesses practice, like churning or unauthorized trading, that violate securities laws and regulations. They have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
Have you suffered losses investing with financial advisor Douglas Leone? If so, the securities attorneys of The White Law Group may be able to help you recover your losses. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit www.WhiteSecurtiesLaw.com.