FINRA has filed charges against five stockbrokers formerly employed by Newport Coast Securities Inc., as well as the firm itself and two supervisors, alleging that the firm excessively traded customer accounts for the purpose of generating commissions- a type of violation known as “churning.”

Newport Coast Securities, based in New York, as well as two former supervisors at the firm, Marc Arena and Roman Luckey, were also named in the FINRA complaint.  According to FINRA, from 2008 through 2013, brokers Douglas Leone, Andre LaBarbera, David Levy, Antonio Costanzo and Donald Bartelt churned the accounts of 24 customers, utilizing margin to trade risky securities and charging excessive commissions, causing the customers losses in the sum of over $1 million.  Brokers also allegedly completed new account forms for clients that misstated the customers’ net worth, investment experience and objectives.  FINRA also alleges that Levy, of West Palm Beach, Fla., and Costanzo, based in Chesapeake, Va., attempted to discourage several customers from speaking with FINRA investigators.

According to the Securities and Exchange Commission, “churning refers to the excessive buying and selling of securities in your account by your broker, for the purpose of generating commissions and without regard to your investment objectives.” In short, churning is a form of broker misconduct in which the broker performs excessive trading to generate personal profit. If an investor feels they may be a victim of churning, he should check his monthly statements for numerous stock trades and then contact a stock broker fraud attorney. If you believe you are a victim of churning, you may contact the law office of Christopher J. Gray, P.C. to explore the possibility of asserting a claim in FINRA arbitration. 

If you have suffered significant losses as a result of your investment with Newport Coast Securities or another firm, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities fraud attorney at The Law Office of Christopher J. Gray at (866) 966-9598 or for a no-cost, confidential consultation.

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Stockbroker arbitration lawyers are looking into accusations made against First Allied Securities, Inc. and broker Rami Yahalom regarding risky investments in AE Luxtera Investments II, LLC, a private technology start-up company. According to reports of a FINRA arbitration claim filed by investors, First Allied and Yahalom offered Luxtera to customers without disclosing sufficient information regarding the investment.  

Allegations Made Against First Allied Regarding Private Equities

According to the allegations, Luxtera was represented as a late stage equity, which means that it was due for an initial public offering (IPO) within 12-36 months. Additionally, the complaints report that First Allied indicated expected revenues in excess of $300 million, when in reality the company had not achieved sales above $1 million.

This is not the first time stockbroker arbitration lawyers have received complaints regarding First Allied and private equity investments.  If you suffered significant losses as a result of doing business with Rami Yahalom or First Allied, or received an unsuitable recommendation of advanced private equities from another stockbroker or financial advisor, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a stock fraud lawyer at the Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or for a no-cost, confidential consultation.

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FINRA Bars Wade James Lawrence from Financial Industry

June 19, 2014

Recently, Wade James Lawrence was barred from the financial industry by the Financial Industry Regulatory Authority (FINRA). Investors’ rights lawyers are exploring accusations made against Lawrence regarding misappropriation of funds during his time as a broker.  According to the FINRA report, Lawrence failed to respond to these allegations, and in doing so forfeited his opportunity […]

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Ameriprise Told to Pay $1.17 Million to Elderly Couple after Unsuitable Real Estate Investment

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The Risk of Unregistered Investments like DCM Alpha Fund

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David Zeng, Most Recently of Merrill Lynch, is Barred from Financial Industry

June 10, 2014

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Supervisory Failure Leaves LPL Financial with Heavy Fines

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First Allied Securities Brokers Under Investigation for Allegedly Misleading Investors on Private Equities

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Investor lawyers currently are looking into allegations of misleading financial advice offered by Cynthia Couyoumjian and other First Allied Securities Inc. brokers selling private equities. Couyoumjian and her co-workers have been alleged in various instances to have not performed due diligence when recommending investments to clients.  A private equity includes any investment in a company […]

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Equi-Vest, Accumulator Variable Annuity Investors Could Recover Losses

May 2, 2014

Securities arbitration attorneys are currently investigating claims on behalf of investors who suffered significant losses in AXA Equitable Life Insurance Company Equi-Vest or Accumulator variable annuity contracts — specifically those invested in the managed funds, AXA Tactical Manager Strategy or ATM-managed funds. Reportedly, the New York State Department of Financial Services (“DFS”) launched an investigation […]

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Investors May Recoup Losses as SEC Charges Robert J. Vitale with Fraud

May 1, 2014

While former stock promoter Robert J. Vitale sits in prison for two years for lying to investigators in a previous investigation about another matter, the U.S. Securities & Exchange Commission (SEC) has decided to file fraud charges against him. The complaint, filed in the U.S. District Court for the Southern District of Florida, accuses Vitale […]

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