Current Salomon Whitney Financial broker, Douglas A. Leone, has been named in a FINRA Enforcement complaint. In that complaint, the customer alleges that Mr. Leone alleges he excessively traded and churned customer’s accounts.
According to the complaint, the following red flags should have indicated misconduct to Douglas A. Leone’s member firm at the time, Newport Coast Securities:
- Cost-to-equity ratios were often over 100%
- Turnover rates were often over 100
- Extraordinary amounts of in-and-out trading
- Customer accounts were highly margined and often concentrated in one security
- Large numbers of transactions in which the total commission/markup per trade exceeded 3 and 4%
- Higher cost trades in which markups almost always exceeded 3% were executed on a riskless principal basis whereas lower cost trades were executed on an agency basis
- Multiple trades were inaccurately characterized as unsolicited
- Inverse and/or leveraged ETFs remained in accounts for multiple trading sessions
- Trading was excessive in light of the customer’s investment objectives
Douglas A. Leone has seven customer initiated complaints listed on his FINRA BrokerCheck Report.
- On March 29, 2012, a customer initiated complaint filed against Douglas A. Leone was settled for $70,000.
- On January 3, 2012, a customer complaint also alleging account churning, settled for almost $10,000
- On February 17, 2006, a customer complaint stemming from Douglas A. Leone receiving excessive commissions and making unsuitable investment recommendations settled for $21,000
- On April 8, 2002, a customer complaint settled for over $4,200 on allegations of unauthorized trades.
- On July 25, 1999, a customer initiated complaint alleging Douglas A. Leone committed fraud by misrepresenting material facts settled for $125,000.
Douglas A. Leone has been a broker at Salomon Whitney’s Farmingdale, New York office since March 2013. Before that Douglas A. Leone worked for Newport Coast Securities in their New York City office from 2008 to 2013. Douglas A. Leone worked for Basic Investors in Hicksville, New York from 2005 to 2008 and Joseph Stevens & Co. in Brooklyn, New York from 2002 to 2005. From 2000 to 2002 Douglas A. Leone worked for Advanced Planning Securities in Smithtown, New York. Douglas A. Leone has also worked for Whitehall Wellington Investments, Inc., Cambridge Capital, LLC (which was expelled by FINRA in 2001), Foster Jeffries Securities, LLC, La Jolla Capital Corporation, Renaissance Financial Securities Corp., Gaines Berland, Inc. and Gruntal Co., Inc.
If you or someone you know has lost money investing with Douglas A. Leone, Salmon Whitney, Newport Coast Securities, or one of their other brokers, you may be entitled to full recovery of your losses. The attorneys at Fitapelli Kurta prosecute cases on behalf of investors like you who have lost money as a result of unsuitable investments. These cases are taken on a contingency fee basis only, which means our firm will not receive any compensation whatsoever unless and until you recover money.
Cases are filed with the Financial Industry Regulatory Authority (FINRA) and will submit to arbitration. Fitapelli Kurta has filed hundreds of cases before FINRA and has recovered millions on behalf of investors who have fallen victim to broker misconduct. Do not delay. Call 877 – 238 – 4175 to speak directly to an attorney and further discuss the merits of your case.
Our consultations are always free.
Call 877 – 238 – 4175 now.