Securities Lawyers Blog
The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints concerning alleged misrepresentation and an employment separation filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Elaine Marie Zito (Zito). According to BrokerCheck records, Zito has been in the securities industry since 1997 and is currently working for Newbridge Securities Corporation (Newbridge) in Scottsdale, Arizona.
The most recent customer complaint against Zito was filed in April 2017 alleging that she misrepresented the client’s account regarding the purchase of a variable annuity back in 2006. Zito was employed at Woodbury Financial Services, Inc during the alleged misrepresentation. The case is currently pending.
During November 2016, Zito was discharged from Questar Capital Corporation (Questar) for allegedly violating the firm’s rules and regulations in relation to unauthorized use of discretion of mutual funds.
In addition, a complaint was filed against Zito in April 2017 alleging that the broker misrepresented the client’s account during her employment at Woodbury Financial Services. The customer claimed that Zito allegedly misrepresented a variable annuity product as having a guarantee that its account value would double after 10 years. The alleged damages were worth $35,000 and the case was later denied.
False representations include either written or oral statements containing misrepresentations or omissions of information that are material to an investor and induce the purchase, sale, or holding of a security. FINRA Rule 2210 also require representations to investors be balanced in light of all the information being provided to the investor. Advisers are prohibited from only listing the positive aspects of a security without disclosing downside risk and negative features in a balanced and fair manner. An intentional omission of the downside risk of an investment can also be a basis for a fraud claim. The benefit of the FINRA rules is that the standard by which a claimant or plaintiff pleads a fraud case are more relaxed as are the standards by which dismissal can be granted. Therefore pleading a violation of the FINRA rules in the FINRA forum greatly facilitates the ability to bring fraud claims.
Gana Weinstein LLP’s securities fraud attorneys represent investors who have suffered securities losses due to the mishandling of their accounts due to claims of misrepresentation. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.