FINRA Charges Newport Coast and Five Brokers with Churning

Posted on August 22nd, 2014 at 11:17 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

New York-based Newport Coast Securities Inc. and five brokers from the firm allegedly churned customer accounts, according to FINRA.  

From September 2008 to May 2013, brokers Douglas Leone, Andre LaBarbera, David Levy, Antonio Costanzo and Donald Barte churned accounts of 24 customers, using margin and risky securities to generate huge commissions, wiping out most of the customers’ capital in the process. Losses amounted to more than $1 million. In addition, those brokers created new account forms for clients that misstated their net worth, investment experience and objectives.

Newport Coast was founded in 2008 when its predecessor firm, Grant Bettingen Inc., was bought by Rubicon Financial Inc. and was managed by several alumni of the failed Brookstreet Securities. Newport Coast has approximately 45 branch offices and 122 registered representatives.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

 

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.