Articles Tagged with Newport Coast Securities

According to a Disciplinary Proceeding with the Financial Industry Regulatory Authority (FINRA), former SW Financial broker Douglas Leone was accused of making potentially unsuitable and excessive transactions in multiple customer accounts. Mr. Leone also failed to appear and provide testimony regarding FINRA’s investigation of him. These are against securities laws and internal firm rules. Excessive trading, also referred to as “churning,” is a particularly egregious form of misconduct by a broker. It is when the broker trades in and out of securities, sometimes in the same stock on the same day, in order to generate large commissions for himself. This typically results in the customer having to pay unnecessary fees. SW Financial may be held liable for investment losses because the firm has a reasonable duty to only recommend and sell those investments that are suitable for customers, based on their age, net worth, investment objectives and investment sophistication. If he does not, the firm may be responsible for money losses in the FINRA arbitration forum on a contingency fee basis.

Douglas Anthony Leone, according to public FINRA records, was previously registered with Gruntal & Co., Gaines, Berland Inc., Renaissance Financial Securities Corp, La Jolla Capital Corp, Foster Jeffries Securities, Cambridge Capital, Whitehall Wellington Investments, Advanced Planning Securities, Joseph Stevens & Company, Basic Investors, Newport Coast Securities and Salomon Whitney Financial (SW Financial) in Melville, New York from March 2013 until March 2017. He has seven customer disputes against him, alleging failure to sell and misrepresentation, fraud and deceit, breach of contract, breach of fiduciary duty, unsuitability, unauthorized trades, failure to correct, excessive commissions, and churning. He has been suspended, and is not currently registered as a broker within the industry.

Stoltmann Law Offices is investigating David Braeger, a former advisor with Newport Coast Securities. Brager allegedly misappropriated or stole $30,000 from a couple. The couple gave the money to Braeger to invest in Rubicon Capital Appreciation Fund, a fund which he managed. Braeger then allegedly failed to deposit the money in the fund and deposited it elsewhere. He then allegedly told the couple until 2014 that Rubicon was still open, even though it closed in 2010. In December 2017, the Financial Industry Regulatory Authority (FINRA) found that Braeger made misappropriations about Rubicon. He was then barred from the industry for these violations. That is against securities laws and internal firm rules.

Mr. Braeger was previously registered with McLaughlin, Piven, Vogel Securities, Painewebber Inc., Bear, Stearns, Mesirow Financial Inc., Everen Securities, Raymond James, Sanders Morris Harris, Legg Mason Wood Walker, A.G. Edwards & Sons, Delta Equity Services, Brookstreet Securities, Newport Coast Securities in Irvine, California from October 2008 until January 2012, Accelerated Capital Group in Irvine from January 2012 until May 2012, Arque Capital in Gardena, California from May 2012 until February 2013 and Midtown Partners in New York, New York from January 2014 until July 2014. He has one regulatory action pending against him, and is not currently registered as a broker within the industry.

We are currently investigating New York based Newport Coast Securities brokers Douglas Leone, Marc Arena, Tyler Luckey, Andre LaBarbera, David Levy, Antonio Costanzo and Donald Bartelt. From approximately 2008 to 2013 these brokers allegedly committed churning fraud. They provided unsuitable investment recommendations involving inverse and/or leveraged ETFs , ETNs and Exchange Traded Products (ETPs). Many of their clients were elderly and/or retired, and had limited investment experience, risk tolerance, income, and net worth. The most common definition of churning, or a churned account, is when a financial advisor overtrades the securities in his customer’s account for the purpose of generating commissions.

Churning is a synonym for over-trading where a stockbroker advances his or her interests over the interests of the client. According to FINRA these particular brokers conducted extraordinary amounts of in-and-out trading and their customer accounts were highly margined and often concentrated in one security. In addition, these particular broker’s direct supervisors witnessed these events and did nothing to intervene. It was upper management who directly profited from excessive fees generated by churned client accounts. According to FINRA, after notices were issued to Levy and Costanzo, they attempted to dissuade clients from cooperating with FINRA’s investigation. Costanzo offered to compensate a customer for his losses but conditioned his offer on the client’s signing a letter stating that he would not testify at a hearing.

To learn about legal choices for recovering securities fraud losses with Newport Coast Securities through FINRA arbitration on a contingency fee basis, please call our law firm for a free evaluation at 312–332–4200.

AdobeStock_112465076-1-300x164Did you lose investment money with Gregory McCloskey, formerly of Newport Coast Securities? If so, the attorneys at Stoltmann Law Offices are interested in speaking with you about those losses. Recently, McCloskey entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). He allegedly participated in a series of private securities transactions without the knowledge or consent of his firm. He personally invested $50,000 in CW, a lighting and energy networking company, without the approval of Newport Coast Securities. He also told two customers about the investment and they invested a total of $50,000 as well. This is against securities laws and Newport Coast can be sued in order to recover those losses. Please call us at 312-332-4200 to find out how to recover your losses on a contingency fee basis in the FINRA arbitration forum. The call is free with no obligation.
McCloskey was previously registered with Centaurus Financial, Dean Witter Reynolds, SII Investments, Jefferson Pilot Securities, Brookstreet Securities, Wedbush Morgan Securities, National Securities Corp, and Newport Coast Securities in Irvine, California from December 2007 until July 2016. He is currently registered with Westpark Capital in Irvine and has been since July 2016, according to his FINRA BrokerCheck report.

Stoltmann Law Offices is investigating David O. Braeger, a former registered representative with Newport Coast Securities in Irvine, California. The Financial Industry Regulatory Authority (FINRA) filed a complaint against him, alleging that he misappropriated or stole $30,000 from a couple. The couple gave Braeger the money in 2009 in order to invest in Rubicon Capital Appreciation Fund, a fund managed by Braeger. Braeger never invested the money in the fund, and told the couple that Rubicon was still an open fund, when, in fact, it wasn’t. Rubicon closed in 2010. This is against securities rules and regulations.

Braeger was previously registered with McLaughlin, Piven, Vogel Securities Inc., Painewebber Inc., Bear, Stearns & Co., Mesirow Financial, Everen Securities, Raymond James, Sanders Morris Harris, Legg Mason Wood Walker, AG Edwards & Sons, Delta Equity Services Corp, Brookstreet Securities Corp, Newport Coast Securities in Irvine, California from October 2008 until May 2012, Accelerated Capital Group, Arque Capital Ltd., and Midtown Partners in New York, New York from January 2014 until July 2014. He has one regulatory matter against him which is currently pending and is not licensed within the industry, according to his public, online FINRA BrokerCheck report.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Robert B. Silva, a former registered representative with Arete Wealth Management, allegedly engaged in outside business activity while registered there. Silva as the owner and sole officer and director of Premier Standard Equities Inc. Between January and February 2015, Silva, acting through Premier, demanded payment for forensic analysis he conducted, prior to joining Arete, of an individual’s investment portfolio held at another FINRA member and pension plan assets, with the expectation of receiving compensation in the amount of $10,000. For this he was suspended for 20 business days and fined $5,000.

Silva was registered with First Allied Securities in Pasadena, California from January 2007 until March 2009, Western International Securities in Pasadena from March 2009 until August 2012, GBS Financial Corp in Pasadena from July 2012 until December 2013, Arete Wealth Management in Chicago, Illinois from December 2013 until March 2015, MS Howells & Co. in Scottsdale, Arizona from April 2015 until April 2015 and Newport Coast Securities in New York, New York from October 2015 until November 2015. He has one customer dispute against him and is not licensed within the industry. Please call our Chicago-based law offices today to speak to an attorney about your options of recovering financial losses.

Stoltmann Law Offices is investigating Joseph Mahalick from Chicago, Illinois. The Financial Industry Regulatory Authority (FINRA) alleged that he intentionally misidentified a broker of record on account applications, in an attempt to cover up for another representative who allegedly violated securities regulations. This is against securities rules and regulations. Mahalick was registered with Garden State Securities in Chicago, Illinois from September 2008 until November 2009, Jesup & Lamont Securities Corp in Chicago from November 2009 until July 2010, Anderson & Strudwick Inc. in Chicago from July 2010 until December 2011, Meyers Associates in Chicago from November 2011 until May 2013 and Newport Coast Securities in Chicago from April 2013 until October 2015. He has been permanently barred by FINRA.

Joseph-Mahalick-FINRA-AWC

Stoltmann Law Offices is investigating Michael Egan, a registered broker with Brittanica Capital Partners in New York, New York since September 2015. According to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report, Egan is the subject of two judgments or liens. Egan was registered with Royce Investment Group, Waterhouse Securities, Wall Street Access, First Union Brokerage Services, DB Alex Brown, Deutsche Bank Securities, JP Morgan Securities, Chase Investment Services, Citigroup Global Markets, Abax Brokerage Services, Stock USA Execution Services, Four Points Capital Partners, John Thomas Financial, Blackbook Capital and Newport Coast Securities. He is currently registered with Brittanica Capital Partners in New York, New York and has been since September 2015. If you invested money with Michael Egan, you may be able to recover your investment losses by calling our securities law firm in Chicago. The call is free with no obligation. We take cases on a contingency fee basis only.

Stoltmann Law Offices is investigating Kenneth Finnell, a broker registered with Centaurus Financial in Temecula, California. According to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report, he is the subject of two tax liens. Kenneth Finnell was registered with Penn Mutual Equity Services in Horsham, Pennsylvania from April 1986 until September 1991, John Hancock Distributors in Boston, Massachusetts from September 1991 until December 1995, The Advisors Group in Bethesda, Maryland July 1995 to September 2006, Raymond James Financial in Houston, Texas from May 2006, LPL Financial Corporation in El Segundo, California from August 2007 until November 2009 and Newport Coast Securities in Temecula, California from November 2009 until 2012. He is currently registered with Centaurus Financial in Temecula, California and has been since April 2012. Please call our securities law firm in Chicago for a free consultation.

Stoltmann Law Offices is investigating Andre V. Labarbera, a former broker with Newport Coast Securities in New York. The Financial Industry Regulatory Authority (FINRA) accused Labarbera of excessively trading and churning customer accounts. FINRA alleged that Labarbera’s customer’s accounts were highly margined and concentrated in one security, and this should have drawn scrutiny by his firm. There were also higher cost trades where markups almost always exceeded three percent and were executed on a reckless principal basis. Also, exchange traded funds (ETFs) and leveraged exchange traded notes (ETNs) remained in accounts for multiple trading sessions and solicited trades were inaccurately characterized as unsolicited. Almost all of these customer accounts exhibited large losses. The trading was not consistent with the customers’ investment objectives and financial situations. In FINRA’s claim it was noted that:

“It is further alleged that Labarbera, the firm and the other representatives engaged in a manipulative, deceptive and fraudulent scheme by churning the accounts of customers. They acted with intent to defraud and/or with reckless disregard of their customers’ interests by seeking to maximize their own remuneration in disregard of the interests of their customers and as a result, willfully violated FINRA rules.”

Labarbera was registered with Stratton Oakmont in Lake Success, New York from September 1990 until April 1992, Whale Securities in New York from May 1992 until May 1994, Gruntal & Co. in New York, New York from May 1994 until April 1996, Whale Securities in New York from April 1996 until June 1997, State Street Securities in Great Neck, New York from June 1997 until November 1998, Tasin & Company in Hauppauge, New York from December 1998 until February 2001, Brookstreet Securities in Dix Hill, New York from February 2001 until July 2007, Wedbush Morgan Securities in Dix Hills from June 2007 until July 2008, Newport Coast Securities in Dix Hills from July 2008 until August 2012 and IFS Securities in Dix Hills from July 2012 until December 2012. His is currently registered with Titus Rockefeller in Dix Hills and has been since January 2013. He has three customer disputes against him, three of which are pending. He has one criminal dispute against him.

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