FINRA Affirms Expulsion Of Newport Coast Securities
Newport Coast Securities Inc. a former Financial Industry Regulatory Authority (FINRA) member brokerage firm headquartered in New York New York and stockbrokers Douglas Anthony Leone and Andre V. La Barbera are subject of a FINRA National Adjudicatory Council Decision which affirmed FINRA’s Extended Hearing Panel’s findings that (1) the firm and its stockbrokers churned customer accounts (2) misrepresentations had been made concerning a customer’s account values and (3) the firm neglected to supervise the stockbrokers’ activities in customers’ accounts. In the Matter of Department of Enforcement v. Newport Coast Securities Inc. No. 2012030564701 (May 23, 2018).
Newport Coast Securities, Leone and La Barbera were subject of a FINRA Extended Hearing Panel Decision on October 17, 2016 which contained findings of churning and excessive trading in customer accounts. Newport Coast Securities and La Barbera were additionally found by the Hearing Panel to have recommended investments on a qualitatively unsuitable basis. Moreover, the Hearing Panel concluded that the activities of stockbrokers had not been adequately supervised by the firm.
Consequently, Newport Coast Securities had been expelled by the Hearing Panel and assessed a $1,000,000.00 fine. La Barbera was fined $125,000.00 and barred by FINRA in all capacities, while Leone was fined $400,000.00 and barred in all capacities. FINRA’s National Adjudicatory Council affirmed FINRA’s Hearing Panel’s barring of La Barbera and Leone and expulsion of Newport Coast Securities.
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