Laurence Torres – Alexander Capital LP – Investigation
The White Law Group continues to investigate potential claims involving Alexander Capital LP and the liability it may have for failure to supervise Laurence M. Torres.
According to a press announcement yesterday, on September 28, 2017, the Securities and Exchange Commission (SEC) charged Laurence Torres with allegedly making unsuitable recommendations and churning customers’ accounts.
According to the SEC, during an investigation of the brokerage firm Alexander Capital LP, the alleged misconduct was discovered. Torres and two others were purportedly making unsuitable recommendations that resulted in substantial losses to customers and steep commissions for the brokers.
Torres allegedly engaged in churning and made unauthorized trades. According to the SEC’s order, he purportedly had no reasonable basis to believe it was suitable to recommend a high-cost pattern of frequent trading.
According to the SEC’s complaint, since customers incur costs with every transaction, the price of the security must increase significantly during the brief period it is held in an account for even a minimal profit to be realized.
According to the complaint, Torres must pay $225,359.36 in disgorgement plus $25,748.02 in interest, and a $160,000 penalty, and has agreed to be barred from the securities industry and penny stock trading.
According to Torres’ BrokerCheck report, he was registered with Alexander Capital from June 2012 until October 2014. He worked at First Standard Financial Company from October 2014 until September 2016. He has ten disclosure events listed on his broker report including 6 customer complaints.
Failure to Supervise
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 Laurence Torres and Alexander Capital LP? 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.