The Financial Industry Regulatory Authority has filed charges against five brokers formerly associated with New York-based Newport Coast Securities Inc. for allegedly churning the accounts of 24 customers. Two former Newport Coast supervisors and the firm itself have also been charged, Financial Advisor Magazine reports.
According to FINRA, between September 2008 and May 2013 the five brokers – Douglas Leone, Andre LaBarbera, David Levy, Antonio Constanzo and Donald Bartelt – excessively traded and churned the customers’ accounts, using margin and high-risk securities to generate huge commissions. The activity virtually wiped out the customers’ capital. The collective losses equal more than $1 million, Financial Advisor Magazine reports.
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