According to public records by the Financial Industry Regulatory Authority (FINRA), David Cannata was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. FINRA claimed that Cannata excessively traded and churned three customer accounts while associated with Craig Scott Capital. In the claim, it was alleged that he used excessive trading as a means to turn over the accounts quickly to generate large commissions for himself and used an aggressive, short-term trading strategy in the accounts that had relied heavily on buying and selling equities of companies releasing their earnings reports. He then reportedly solicited to buy transactions just prior to the earnings’ announcements and then sold the positions shortly after the earnings were released in order to avoid losses. He allegedly did this with hundreds of trades for customers in their accounts. Some of the customers allegedly had losses in the millions of dollars, while Cannata made hundreds of thousands of dollars in commissions for himself.
Churning, also known as excessive trading is fraudulent conduct in a brokerage account where a broker over-trades an account to generate inflated commissions. This can cause high fees for the investor and is a particularly egregious form of securities law violation. Cannata was also accused of “willfully failing to amend and timely disclose on his Form U4 tax liens totaling $189,449 and was ordered to pay almost $1.6 million in restitution. Cannata was also accused of breaching contract, breaching duty of good faith and fair dealing, and intentional torts and negligence. These are all against securities rules and regulations and Craig Scott Capital, his former firm, can be held responsible for these losses in the arbitration forum. The firm is responsible for its brokers actions and if it does not reasonably supervise them, can be held responsible for financial investment losses. Please call our securities law firm today at 312-332-4200 to speak to an attorney about how you may be able to bring a claim against Mr. Cannata and Craig Scott Capital. The call is free with no obligation.
David Charles Cannata was registered with Continental Broker-Dealer Corp, First United Equities Corp, Institutional Equities Corp, Advanced Planning Securities, JP Turner & Co., JHS Capital Advisors, Brookstone Securities and Craig Scott Capital in Uniondale, New York from February 2012 until September 2014. He has seven customer disputes against him, three of which are currently pending. According to his online, FINRA BrokerCheck report, he is not licensed and has ben barred from the industry.