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

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015. 

 
 
June 23, 2022
Eccleston Law LLC Investigates Recovery Options for NRIA Investors

Headquartered in Secaucus, NJ, National Realty Investment Advisors (NRIA) recently declared bankruptcy amid investor redemption requests, federal and state investigations, and unsustainable debt.

 
 
June 22, 2022
SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

The Securities and Exchange Commission (SEC) has filed suit against Michael Mooney, Britt Wright, and Penny Flippen pertaining to their engagement with a Ponzi scheme, which raised at least $110 million from nearly 400 investors.