Articles Tagged with Craig Scott Capital

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.

Did you or someone you know invest money with Edward Beyn, a former broker with New York-based Rothschild Lieberman? If so, you may be entitled to recover your losses. We may be able to help you bring a claim against Rothschild Lieberman for investment losses. The firm may be responsible for losses incurred with Edward Beyn, and we sue firms on a contingency fee basis in the Financial Industry Regulatory Authority (FINRA) arbitration process. Please call today. The call is free with no obligation. 312-332-4200.

Beyn was alleged to have “excessively traded and churned customer accounts, without regard to the suitability of his recommended trading.” He also, while employed at Craig Scott Capital, allegedly executed excessive and unauthorized trades and misrepresented material facts. He also was accused of breaching fiduciary duty and executing highly speculative trades. Some of these complaints are currently pending.

According to his FINRA online BrokerCheck report, Beyn was registered with Pointe Capital in Bethpage, New York from May 2008 until October 2008, Clark Dodge & Co. in Garden City, New York from October 2006 until March 2009, JHS Capital Advisors in Bethpage from May 2009 until May 2010, Brookstone Securities in Uniondale, New York from May 2010 until February 2012, Craig Scott Capital in Uniondale from February 2012 until September 2015, and Rothschild Lieberman in Syosset, New York from September 2015 until March 2016. He has seven customer disputes against him, two of which are currently pending. He is not licensed within the industry.

According to a Financial Industry Regulatory Authority (FINRA) complaint, Edward Beyn was accused of excessively trading and churning six customer accounts while he was registered as a representative with Craig Scott Capital (CSC). This is a tactic used by brokers to garner large commissions for themselves, even if it is not in the best interest of the client. Beyn allegedly used a short-term trading strategy in the customers’ accounts as a means to turn over the accounts quickly and generate outside commissions for himself. He relied heavily on buying and selling equities of companies releasing their earnings reports as a catalyst for excessively trading accounts. Each of these carried a markup. A broker must take into account a customer’s age, net worth, trading strategy and investment objectives when recommending and selling securities. If he does not, his firm can be held responsible for investment losses. This allegedly took place between March 2012 and August 2013. He executed 115 transactions in this time period, and generated approximately $188,704 in commissions and fees for himself. Many of his victims were over the age of 60.

Beyn was registered with Pointe Capital in Bethpage, New York from May 2008 until October 2008, Clark Dodge & Co. in Garden City, New York from October 2008 until March 2009, JHS Capital Advisors in Bethpage from May 2009 until may 2010, Brookstone Securities in Uniondale, New York from May 2010 until February 2012 and Craig Scott Capital in Uniondale, New York from February 2012 until September 2015. He is currently registered with Rothschild Lieberman in Syosset, New York and has been since September 2015. He has seven customer disputes against him, five of which are currently pending.

Stoltmann Law Offices is investigating Craig Scott Capital (CSC) and two of its owners Craig Scott Taddonio and Brent Morgan Porges. The firm and the two men recently had a Financial Industry Regulatory Authority (FINRA) Disciplinary Proceeding against them. According to the proceeding, CSC, Taddonio and Porges “fostered a culture of aggressive, excessive trading of customer accounts by encouraging the firm’s registered representatives to use upcoming earnings announcements as a catalyst for recommending hundreds, and in some cases, thousands, of short term trades in customer accounts.” CSC and its owners and brokers earned more than $5 million in commissions while customers suffered more than $9 million in losses in accounts where the annualized turnover rates were has high as over 200 and the annualized cost-to-equity ratios were has high as over 800%. Both men and brokers actively traded customer accounts so aggressively, that it resulted in fraudulent churning and quantitatively unsuitable trading. They also failed to establish a reasonable supervisory system, including a written supervisory system wherein they failed to detect the fraudulent churning activities. These are against securities rules and regulations.

Craig Scott Taddonio was registered with Gunnallen Financial in New York, New York from March 2004 until December 2005, JHS Capital Advisors in Bethpage, New York from December 2005 until May 2010 and Brookstone Securities in Uniondale, New York from May 2010 until February 2012. He is currently registered with Craig Scott Capital in Uniondale, New York and has been since February 2012. He has three customer disputes against him, one of which is currently pending.

Porges was registered with On-Site Trading, Andover Brokerage, First Montauk Securities, Gunnallen Financial, Benson York Group, Great Eastern Securities, Joseph Gunnar & Co., Pointe Capital Inc., New Castle Financial Services, Brookstone Securities, Prestige Financial Center, Rockwell Global Capital, Craig Scott Capital and Newbridge Securities Corp. He is currently registered with Newbridge Securities Corp in New York, New York and has been since November 2015. He has four customer disputes against him, one of which is currently pending.

Stoltmann Law Offices is investigating Zachary Bader, who was permanently barred from the industry by the Financial Industry Regulatory Authority (FINRA). Bader was the subject of two regulatory sanctions and five pending customer complaints. According to the customer complaints, Bader executed excessive trades with “reckless disregard” for his clients’ interests, recommended unsuitable investments, failed to conduct adequate due diligence, breached fiduciary duty, and churned accounts, among other transgressions. Churning is a violation of securities laws and is used to generate large commissions for the broker. Bader was registered with Brookstone Securities in Uniondale, New York from March 2011 until February 2012, Craig Scott Capital in Uniondale from February 2012 until August 2013 and National Securities Corporation in Melville, New York from August 2013 until August 2014. He has five customer disputes against him. He is not licensed and has been permanently barred from the industry. If you invested money with Zachary Bader, his former firm, National Securities Corp, can be sued in the FINRA arbitration forum to recover your investment losses. The call is free with no obligation. We take cases on a contingency fee basis only.

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