Finra panel directs N.J.'s Garden State Securities to pay damages to elderly investor

Finra directs the brokerage firm to pay $142,168 due to allegations of unsuitable investments and overtrading.
JUL 06, 2016
An elderly client was awarded $142,168 by a Financial Industry Regulatory Authority Inc. arbitration panel as a result of claims that his brokerage firm, Garden State Securities Inc., had put him into unsuitable investments and had overtraded his account. Anthony Romano, who's in his late 70s, lost money due to such unsuitable investments as penny stocks, stocks of Chinese-owned companies, and leveraged exchange-traded notes, according to the attorneys representing him, Adam Nicolazzo and Robert Van De Veire of Malecki Law in New York. “They were really boom or bust products,” said Mr. Van De Veire, adding they weren't appropriate for a senior investor concerned about his monthly expenses. In addition to shifting his investments into more speculative stocks, Mr. Van De Veire said the costs associated with trading in the account were too high. In his statement of claim, Mr. Romano requested at least $142,168 in compensatory damages plus punitive damages, attorneys' fees and other costs, according to a Finra dispute resolution document dated July 5. At the close of the arbitration hearing in New York, he sought $214,349 in compensatory damages, while requesting $72,982 in punitive damages plus attorneys' fees and other costs, the document shows. Mr. Romano was awarded $142,168 and denied any other relief. “Garden State Securities disagrees with the award and is disappointed the arbitrators saw fit to award any damages in this case,” said Ian Frimet, a partner at Wexler Burkhart Hirschberg & Unger who is representing the brokerage firm. “Even though the arbitrators awarded only 66% of the damages claimant sought, and denied the request for attorneys' fees, punitive damages and costs, we believe any award was unjustified,” he said. Steven Trigili, chief compliance officer at Red Bank, N.J.-based Garden State Securities, didn't return phone calls and an email seeking comment about the Finra arbitration award.

Latest News

Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York
Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York

Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.

UBS loses arbitration battle in fiduciary fight over foundation funds
UBS loses arbitration battle in fiduciary fight over foundation funds

A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.

RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee
RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee

NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.

Three easy ways to boost your firm’s impact this summer
Three easy ways to boost your firm’s impact this summer

Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.

Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite
Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite

Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.