U.S. SEC Fine Brokers Churning

On 28 September, SEC charged dealers with unsuitable recommendations.

  • Exam of Alexander Capital, detected potential misconduct among certain brokers.
  • Complaint vs. William Gennity and Rocco Roveccio, order against Laurence Torres.
  • Defendants recommendations caused loss to customers, commissions to brokers.
  • Defendants churned customer accounts, unauthorized trades, and hid information.
  • Customer losses of $683k while defendants received approximately $280k, $206k.
  • Torres had no basis to think it suitable to recommend high-cost, frequent trading.


  • Torres barred from industry and trading re-pay $225k disgorgement $160k penalty.
  • One of the brokers also agreed to pay more than $400,000 to settle their charges.