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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
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  • FINRA Sues Newport Coast Securities And 7 Brokers For Churning

    On July 28, 2014, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement filed an action against Newport Coast Securities, Inc. and five of its brokers for churning customer accounts. FINRA Case # 2012030564701.

    In the complaint, FINRA alleges that Newport Coast and five of its brokers, Douglas Leone, Andre LaBarbera, David Levy, Antonio Costanzo and Donald Bartelt, excessively traded and churned 24 customer accounts from September 2008 through May 2013. FINRA alleges that the misconduct was so blatant that it should quickly have drawn scrutiny from the firm's compliance personnel, who apparently looked the other way.

    The misconduct cited in the complaint includes:

    • cost-to-equity ratios were over 100%
    • turnover rates were often over 100
    • extraordinary amounts of in and out trading
    • highly margined accounts
    • accounts highly concentrated in a single security
    • commissions exceeding 3% and sometimes 4%
    • solicited trades inaccurately characterized as unsolicited
    • accounts exhibited large losses

    Douglas Leone worked from his home office and was a part of a Long Island branch of Newport Coast. He presently is registered with Salomon Whitney, LLC.

    Marc A. Arena worked for Newport Coast in Long Island, New York. He presently is registered with National Securities Corporation.

    Andre V. LaBarbera, who early in his career worked for Stratton Oakmont, worked for Newport Coast from his home in Dix Hills, New York. After leaving Newport Coast in 2012, he was registered for a brief period with IFS Securities and is currently registered with Titus Rockefeller, LLC.

    David M. Levy, who also worked for Stratton Oakmont in the early 1990's, worked from a branch office of Newport Coast in West Palm Beach, FL. He is currently registered with Titus Rockefeller, LLC, Wellington, FL

    Antonio Costanzo worked for Newport Coast from his home in Chesapeake, Virginia. He is currently registered with Titus Rockefeller, LLC.

    Roman Tyler Luckey left Newport Coast in 11/2012 and is not currently registered.

    Donald A. Bartelt is currently registered with Newport Coast and works from his home in Cave Creek, Arizona.

    Churning occurs when a broker over trades an account to generate commissions for himself and his company to the detriment of the customer's best interest.

    If you have questions about how your account was handled, call to discuss it with an experienced securities attorney. You may be able to recover losses through FINRA arbitration. Contingent fee representation.

    Nationwide representation.

    Rex Securities Law

    561 391 1900

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Aug 06 3:24 PM | Link | Comment!
  • Broker Malcolm Segal Discharged By Aegis Capital Corporation

    According to FINRA records, Malcolm Segal of Langhorne, Pennsylvania and Boynton Beach, FL, was discharged by Aegis Capital Corporation on July 28, 2014. The following comment was entered by Aegis on the FINRA records:

    "Mr. Segal failed to cooperate with an internal investigation into a customer complaint alleging that in December 2013, Mr. Segal, on an unauthorized basis, transferred monies via wire from the client's account."

    FINRA records also reveal that on July 9, 2014, a customer of Segal located in Pennsylvania alleged that $225,000 was transferred from his account without his authorization.

    If you had an account with Malcolm Segal and have suffered losses, call to discuss your legal options.

    Nationwide representation. Contingent fee.

    Rex Securities Law

    561 391 1900

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 31 8:42 AM | Link | Comment!
  • RSL Investigates Aegis Capital Broker Malcolm Segal

    UPDATE: July 30,2014- FINRA BrokerCheck records indicate that Segal is no longer registered with Aegis Capital and that a customer has filed a complaint that Mr. Segal, on an unauthorized basis, transferred monies via wire from the client's account. See update here.

    Rex Securities Law is investigating registered representative Malcolm Segal of Langhorne, PA, and Boynton Beach, FL, in connection with the alleged mishandling of a brokerage account. We have been contacted by a client of Aegis and Segal who is concerned about certain Certificates of Deposit investments.

    Segal is registered with Aegis Capital and, according to FINRA records, is licensed in California, Florida, Missouri, New Jersey, New York, Pennsylvania and Texas. Segal was previously registered with Cumberland Brokerage Corporation of Langhorne, PA, from 01/1989-04/2011.

    If you have information which you believe may be helpful to this investigation, we would appreciate hearing from you. Rex Securities Law represents investors nationwide seeking recovery of losses due to the negligence and/or fraud of stockbrokers and stock brokerage firms.

    Rex Securities Law

    561 391 1900

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 25 12:43 PM | Link | Comment!
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