SECURITIES AND EXCHANGE COMMISSION CENSURES ALEXANDER CAPITAL FOR FAILURE TO SUPERVISE

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SECURITIES AND EXCHANGE COMMISSION CENSURES ALEXANDER CAPITAL FOR FAILURE TO SUPERVISE

The Securities and Exchange Commission has censured Alexander Capital Advisors, of New York, NY, and fined the firm $410,987 for failing to Alexander Capital Advisorssupervise three brokers who made unsuitable investment recommendations to customers, churned (excessively traded) customer accounts, and made unauthorized trades that generated large commissions for the brokers but caused substantial client losses. According to the firm’s FINRA BrokerCheck report, the SEC found that from 2012 through 2014, Alexander Capital failed to implement adequate supervisory policies and procedures and permitted a “lax” environment which permitted the three brokers’ misconduct to continue unchecked. The SEC further found that the firm did not have any reasonable mechanisms in place to detect and prevent unsuitable investment recommendations in customer accounts and failed to implement its policies and procedures related to churning and unauthorized trading. Last September, the SEC filed a civil complaint against two of the three brokers involved, William C. Gennity and Rocco Roveccio, alleging that the brokers made unsuitable investment recommendations without a reasonable basis for the recommendations, made material misrepresentations and omissions in their sales recommendations to customers, churned customer accounts, and engaged in unauthorized trading. The customers involved were primarily near retirement age, with minimal formal education, and no prior investing experience. The SEC reached a $411,107 settlement with Laurence M. Torres, the third broker involved in the misconduct. If you or someone you know lost money as a client of Alexander Capital, William C. Gennity, Rocco Roveccio, and/or Laurence M. Torres due to unsuitable, misrepresented, or unauthorized transactions, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.

By |July 6th, 2018|Legal Matters|

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