First Standard Financial

Andre Davis Accused by Multiple Clients of Churning Their Accounts

September 21, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Andre Davis (Davis), currently associated with Paulson Investment Company LLC (Paulson Investment), has been subject to at least 15 customer complaints and two criminal matters during his career. The majority of the customer complaints against Davis concern allegations of high frequency trading activity also referred to as churning.

In August 2019 a customer complained that Davis made unsuitable investment recommendations, excessive trading, and unauthorized trading. The claim alleges $350,000 in damages and is currently pending.

In June 2019 a customer complained that Davis churned their account and made unauthorized trades. The claim alleges $152,400 in damages and is currently pending.

In May 2019 a customer complained that Davis violated the securities laws by excessive trading, unauthorized trades, and unsuitable investments. The claim alleges $461,000 in damages and is currently pending.

In April 2019 a customer complained that Davis violated the securities laws by excessive trading and unauthorized trades. The claim alleges $300,000 in damages and is currently pending.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Debra Bourne Has Excessive Trading Customer Complaints

June 25, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Debra Bourne (Bourne) has been subject to at least five customer complaints during her career. Bourne is formerly employed by First Standard Financial Company LLC (First Standard Financial) and National Securities Corporation (National Securities). The majority of the customer complaints against Bourne concern allegations of high frequency trading activity also referred to as churning.

In April 2019 a customer complained that Bourne 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 Bourne violated the securities laws by alleging that the financial advisor engaged in unsuitable trading, excessive trading, breach of fiduciary duty, and negligence among other claims alleged. The claim seeks $300,000 in damages and is currently pending.

In February 2019 a customer complained that Bourne 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.

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.

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.

Rocco Roveccio Subject to Customer Complaint Requesting over $1,500,000 in Damages

August 24, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating First Standard Financial Company LLC (First Standard Financial) broker Rocco Roveccio (Roveccio). According to BrokerCheck Records, Roveccio has been subject to five customer complaints, two of which are still pending. Roveccio has also been subject to a pending regulatory matter, two liens, and a criminal action.

In May 2018, a customer alleged that Roveccio was executing unauthorized trades and recommending unsuitable investments to the customer. The customer has requested $1,500,000 in damages. This dispute is currently still pending.

In January 2018, a customer alleged that Roveccio was executing trades in the account without the customer’s prior permission and also engaged in churning of the account. The customer has requested $115,995.25. This dispute is currently still pending.

Financial Advisor Joseph Thurnherr Subject to Multiple Customer Complaints

November 21, 2016 | by Staff Attorney

Investment attorneys at Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Joseph Thurnherr (Thurnherr) alleging unsuitable investments, fraud, churning, breach of fiduciary duty, and unauthorized trading among other claims. According to brokercheck records Thurnherr has been subject to five customer complaints, and one judgment/lien.

In November 2014, Thurnherr received a tax lien in the amount of $27,663. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

In June 2016 a customer filed a complaint alleging that Thurnherr overconcentrated their account causing $93,624 in losses. The claim is currently pending.