Churning (Excessive Trading)

Michael Bastardi Subject to Multiple Churning Complaints

June 17, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Michael Bastardi (Bastardi) has been subject to at least two customer complaints, one regulatory action, and one tax or lien judgment during his career. Bastardi was formerly employed by Chelsea Financial Services (Chelsea Financial) and National Securities Corporation (National Securities). The majority of the customer complaints against Bastardi concern allegations of high frequency trading activity also referred to as churning.

In May 2019 Bastardi consented sanctions and an industry bar from FINRA due to the findings that he refused to provide documents and information requested by FINRA in connection with an investigation into the allegations disclosed on a termination statement. FINRA found that the termination disclosure stated that Bastardi was the subject of a customer complaint alleging that he had engaged in unsuitable margin trading, unauthorized trading, fraud and forgery when he was registered through two member firms, resulting in damages of approximately $250,000.

Gabriel Block Subject to Regulatory Actions and Churning Complaints

June 16, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Gabriel Block (Block) has been subject to at least 12 customer complaints and five regulatory actions during his career. Block is currently barred from the industry but was formerly employed by First Standard Financial Company LLC (First Standard Financial) and National Securities Corporation (National Securities). The majority of the customer complaints against Block concern allegations of high frequency trading activity also referred to as churning.

In May 2019 the New Jersey Bureau of Securities revoked Block’s license in his home state of New Jersey finding that Block engaged in dishonest or unethical business practices in the securities business. The state went on to find that Block engaged in a device, scheme, or artifice to defraud.

In April 2019 a customer complained that Block violated the securities laws by alleging that the financial advisor engaged in unsuitable and excessive trading causing $2,000,000 in damages. The claim is currently pending.

In March 2019 a customer complained that Block violated the securities laws by alleging that the financial advisor engaged in unsuitable trading. The claim is currently pending.

In February 2019 a customer complained that Block violated the securities laws by alleging that the financial advisor engaged in unsuitable and unauthorized trading causing $668,000 in damages. The claim is currently pending.

Laidlaw’s Peter Viglione Subject to Multiple Churning Complaints

June 10, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Peter Viglione (Viglione) has been subject to at least four customer complaints during his career. Viglione is currently employed by Laidlaw & Company (UK) Ltd. (Laidlaw). The majority of the customer complaints against Viglione concern allegations of high frequency trading activity also referred to as churning.

In May 2018 a customer filed a complaint alleging that Viglione violated the securities laws by, among other things, that Viglione’s activities from 2015 through 2017 caused $20,179 in damages. The claim settled.

In May 2018 a customer filed a complaint alleging that Viglione violated the securities laws by, among other things, that Viglione engaged in unauthorized trading and excessive trading from 2015 through 2016 caused $200,000 in damages. The claim is currently pending.

In July 2012 a customer filed a complaint alleging that Viglione violated the securities laws by, among other things, that Viglione engaged in unauthorized trading, excessive trading, and misrepresentations causing $780,000 in damages. The claim was settled for $125,000.

Sanctioned Broker Mohamed Yassin Subject to Excessive Trading Complaints

May 14, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Mohamed Yassin (Yassin) has been subject to at least two customer complaints, one employment termination for cause, and two regulatory matters during his career. Yassin is formerly employed by Morgan Stanley and National Securities Corporation (National Securities). The customer complaints against Yassin concern allegations of high frequency trading activity also referred to as excessive trading or churning.

In October 2018 FINRA alleged that Yassin failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance which triggered an industry bar and suspension.

In June 2017, Morgan Stanley discharged Yassin claiming that he failed to verbally confirm transactions prior to execution in clients’ accounts.

In April 2017 a customer filed a complaint alleging that Yassin violated the securities laws including excessive trading from 2012 until 2016 causing $2 million in damages. The claim settled for $602,717.

Broker Philip Sparacino Subject to Churning Complaint

April 16, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Philip Sparacino (Sparacino) has been subject to at least two customer complaints, three debt liens or judgements, and one criminal matter during his career. Sparacino is currently employed by First Standard Financial Company LLC (First Standard Financial) but has worked for a total of six firms during his 11 year career. One of the customer complaints against Sparacino concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In December 2018 a customer filed a complaint alleging that Sparacino violated the securities laws including churning and unsuitable trading causing $90,198 in damages. The claim is currently pending.

In September 2016 a customer filed a complaint alleging that Sparacino violated the securities laws including unsuitable trading, breach of fiduciary duty, and unauthorized trading causing $38,084 in damages. The claim is currently pending.

Sparacino also has three debts including a $3,774 lien from March 2017. The fact that a broker cannot manage his own personal finances is material information for a client to consider. In addition, the types of products clients have alleged were unsuitable are high commission products that may be recommended to generate high profits for the advisor at the expense of the client.

Advisor Yousuf (Joe) Saljooki Subject to Multiple Churning Complaints

April 16, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Yousuf (Joe) Saljooki (Saljooki) has been subject to at least seven customer complaints, two regulatory actions, two employment terminations for cause, and one debt lien or judgement during his career. Saljooki is formerly employed by Worden Capital Management LLC (Worden Capital) but has worked for a total of nine firms during his 12 year career. The customer complaints against Saljooki concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In July 2018 FINRA suspended Saljooki after he failed to respond to the regulator’s requests for information.

In April 2018 Saljooki was discharged from Worden Capital for failing to disclose and outstanding tax lien to the State of Arkansas during the application process for registration with the state.

In February 2018 a customer filed a complaint alleging that Saljooki violated the securities laws by engaging in churning, unsuitable investments, and fraud. The claim alleged $523,930 in damages. The claim settled for $50,000.

In December 2017 SW Financial discharged Saljooki after the firm alleged that Saljooki opened a branch office under another name without the permission of the firm in violation of FINRA Rule 3270. The firm also accused him of violating Reg S-P by obtaining client information.

Joseph Stone Capital Broker Joseph Ambrosole Subject to Churning Claim

January 14, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Joseph Ambrosole (Ambrosole) has been subject to two customer complaints, two regulatory actions, and one tax lien during his career. Ambrosole is currently employed by Joseph Stone Capital L.L.C. (Joseph Stone Capital). One of the the customer complaints against Ambrosole concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In August 2018 a customer filed a complaint alleging that Ambrosole violated the securities laws by engaging in common law fraud, breach of fiduciary duty, and negligence causing $100,000 in damages. The claim is currently pending.

In March 2018 a customer filed a complaint alleging that Ambrosole violated the securities laws by engaging in churning, unsuitable investments, and overconcentration causing $275,000 in damages. The claim is currently pending.

In addition, Ambrosole has one financial disclosure concerning a tax lien for $57,199. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

IFS Securities Advisor Thomas Williams Subject to Churning Claims

January 10, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Thomas Williams (Williams) has been subject to five customer complaints and one termination for cause during his career. Williams is currently employed by IFS Securities. Several of the the customer complaints against Williams concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In October 2018 a customer filed a complaint alleging their account was excessively traded, churning, and unsuitable investments. The claim alleged $50,000 in damages and is currently pending.

In August 2010 Williams was terminated by First Allied Securities, Inc. (First Allied) in connection with allegations that a customer complained over unsuitable investments, misrepresentation, and breach of fiduciary duty.

Garden State Securities Advisor Christhian Palacios Subject to Churning Claims

January 9, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Christhian Palacios (Palacios) has been subject to two customer complaints and four tax liens during the course of his career. Palacios is currently employed by Garden State Securities, Inc. (Garden State Securities). One of the customer complaints against Palacios concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In June 2018 a customer filed a complaint alleging their account was excessively traded and unsuitable from January 2009 until March 2016. The claim alleged $298,109 in damages and is currently pending.

In July 2016 Palacios disclosed a tax lien of $140,000. Tax liens can be sign that a broker may have a conflict of interest to recommend or engage in high risk trades and improper recommendations due to the need to obtain funds. FINRA discloses tax liens information because it is important for investors to know whether or not a broker can manage their own finances.

Advisor Stephen Murray Subject to Allegations of Excessive Trading

November 14, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Stephen Murray (Murray) has been subject to seven customer complaints, two financial disclosures or tax liens, and one regulatory action. Murray was formerly employed by Raymond James & Associates, Inc. (Raymond James) prior to his bar from the financial industry. Many of the customer complaints against Murray concern allegations of high frequency trading activity also referred to as churning, unauthorized trading, and unsuitable investments.

In May 2018 FINRA barred Murray after he failed to respond to FINRA’s requests for documents and information concerning his activities.

In May 2017 a customer filed a complaint alleging churning unauthorized trading, negligence, and breach of fiduciary duty. The claim alleged $100,000 in damages and settled.

In addition, Murray has two financial disclosures concerning debts and tax liens. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.