SEC Detects Alexander Capital Brokers Defrauding Customers

SEC Detects Alexander Capital Brokers Defrauding Customers

The Securities and Exchange Commission (SEC) has charged three New York-based brokers from Alexander Capital L.P. with making unsuitable recommendations to investors that resulted in substantial customer investment losses and large broker commissions.

An SEC examination of Alexander Capital L.P. detected potential misconduct among certain brokers, and the ensuing investigation has led to the filing of an SEC complaint against William C. Gennity, Rocco Roveccio and Laurence M. Torres.

The SEC’s complaint alleges that brokers Gennity and Roveccio recommended investments to clients that involved frequent trading of securities without any reasonable belief that their customers would profit. The complaint also alleges that both brokers engaged in unauthorized trading, churned customer accounts, and concealed information from their customers including transaction costs associated with trading recommendations (commissions, markups, markdowns, postage, fees, and margin interest). According to the SEC, the customers lost $693,038. Gennity and Roveccio received approximately $280,000 and $206,000, respectively, in commissions and fees.

Andrew M. Calamari, Director of the SEC’s New York Regional Office and Co-Chair of the Enforcement Division’s Broker-Dealer Task Force, said, “As alleged in our complaint, Gennity and Roveccio each misled several customers by touting their ability to outperform the market while concealing that the cost to customers for this excessive in-and-out trading doomed any realistic possibility of these brokers making money for anyone other than themselves.”

The SEC has increased supervision and crackdown of broker misconduct within the last few years, filing complaints against bad actor brokers and those who don’t act in investors’ best interests.

Alexander Capital Broker Agrees to Pay to Settle Charges

The SEC’s findings state that Torres made unauthorized trades, engaged in churning and had no reasonable basis to believe that his recommendations of a high-cost pattern of frequent trading was suitable for customers. Without admitting or denying the findings, Laurence M. Torres agreed to pay more than $400,000 to settle the charges. He has agreed to be barred from the securities industry, and will pay a $160,000 penalty in addition to $225,359.36 in disgorgement, plus $25,748.02 in interest.

Did You Lose Money at Alexander Capital L.P.?

If you believe you have been the victim of stockbroker or brokerage misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.