According to FA-Mag.com, the Financial Industry Regulatory Authority (FINRA) has accused five brokers of churning and excessive trading in clients account in order to generate commissions. FINRA alleges that the total losses amounted to more than $1 million. The five accused brokers, Douglas Leone, David Levy, Andre LaBarbera, Antonio Costanzo and Donald Bartelt, were working with the firm Newport Coast Securities Inc during the relevant time. Two of the firms supervisors, Marc Arena and Roman Luckey, were also named in FINRA’s complaint.
Allegedly, between September 2008 and May 2004 the five brokers used margin and risky securities to churn the accounts of 24 clients, nearly diminishing most of the clients capital. The complaint also alleges the brokers created fraudulent client account forms that misstated the clients net worth, investment experience and objectives.
Brokers have a fiduciary duty to make investment recommendations that are consistent, not only with the clients net worth, investment experience and objectives, but also risk tolerance, age, and liquidity needs among other factors. Furthermore, brokers are prohibited form engaging in underhanded businesses practice, like churning, that violate securities laws and regulations.
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. 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.
According to BrokerCheck, Donald Barter is the only broker still affiliated with Newport Coast Securities. Douglas Leone currently works with Salomon Whitney, LLC. Andre LaBarbera, Antonio Costanzo and and David Levy are currently working with the brokerage firm Titus Rockefeller.
If you worked with the aforementioned brokers or are a client of Newport Coast Securities, and have suffered significant financial losses, the attorneys of The White Law Group may be able to help recover your losses. For a free consultation with a securities attorney, please call (312)238-9650.
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.