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.
Settlement
- 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.
