Securities Arbitration Lawyer Blog
**Update: November 11, 2021** On November 8, 2021, Aegis Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018. Click on the following link to read more: Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading
Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm. If you or a loved one were a customer of Aegis Capital, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.
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Financial Advisor Anthony Tricarico Suspended by FINRA for Excessive Trading While Employed at Aegis Capital Corp. – New York, NY
FINRA has suspended financial advisor Anthony (Tony) Tricarico from the securities industry for six months and fined him $5,000.
FINRA alleged that between November 2014 and November 2015, while employed by Aegis Capital Corp. in New York, NY, Mr. Tricarico violated FINRA Rules 2111 and 2010 when he engaged in excessive and quantitatively unsuitable trading in the accounts of three customers.
Mr. Tricarico was employed by Aegis Capital Corp. in New York, NY, from March 2010 until July 2020.
If you have suffered financial losses investing with Anthony Tricarico or suspect that Mr. Tricarico did not have your best interest in mind when recommending investments or account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Aegis Capital Corp.
FINRA Letter of Acceptance, Waiver, and Consent No. 2016051704304
Between November 2014 and November 2015, Mr. Tricarico, while employed by Aegis Capital Corp. in New York, NY, Anthony Tricarico excessively and unsuitably traded three customers’ accounts.
Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker. Excessive trading is unethical and illegal.
Specifically, FINRA alleged:
- Tricarico recommended the trading in the three customers’ accounts, and they routinely followed his recommendations. Therefore, Mr. Tricarico exercised de facto control over the customers’ accounts.
- A married couple held a joint account with the firm, which had an investment objective of “growth” and risk tolerance of “medium. From January 2015 to August 2015, Mr. Tricarico’s trading generated an annualized cost-to-equity ratio of 161.7% and an annualized turnover rate of 46.58. The couple paid $30,615 in commissions and trading costs and incurred losses of $28,318.
- Another customer, a senior citizen, had an investment objective of “aggressive growth/aggressive income” and a “high” risk tolerance. From November 2014 to November 2015, Mr. Tricarico’s trading generated an annualized cost-to-equity ratio of 91.48% and an annualized turnover rate of 17.73. The elderly customer paid $14,118 in commissions and trading costs and incurred losses of $11,530.
There are two primary indicators used to evaluate whether a financial advisor excessively traded an account. The first is turnover rate, which represents the number of times a portfolio of investments is replaced for another portfolio of investments. Generally, a turnover rate of six suggests excessive trading, but a turnover rate below four can be excessive in some cases. FINRA’s Department of Enforcement alleged that trading in the subject accounts had turnover ratios of 46.58 and 17.73.
The second indicator used to assess whether trading is excessive in an investment account is its cost-to-equity ratio. The cost-to-equity ratio measures the amount an account must appreciate to cover commissions and other expenses. That is, how much the account needs to grow just to break-even. A cost-to-equity ratio of 20% generally indicates excessive trading has occurred. The accounts at issue had cost-to-equity ratios of 161.7% and 91.48%.
FINRA concluded that Mr. Tricarico’s recommended securities transactions were excessive and quantitatively unsuitable given the customers’ investment profiles. Therefore, Mr. Tricarico violated FINRA Rules 2111 and 2010.
Financial Advisor Anthony Tricarico (CRD No. 1047416)
Anthony Tricarico had 37 years of experience in the securities industry and has been employed as a financial advisor at the following brokerage firms in and around New York, NY:
- Aegis Capital Corp. from 2010 – 2020 (10 years).
- Gunallen Financial, Inc. from 2008 – 2010 (1 year).
- The Concord Equity Group, LLC from 2007 – 2008 (1 year).
- Gunallen Financial, Inc. from 2003 – 2007 (4 years).
- Fahnestock & Co. Inc. from 2002 – 2003 (1 year).
- Josephthal & Co., Inc. from 2001 – 2002 (<1 year).
- Robb Peck McCooey Clearing Corporation from 2000 – 2001 (<1 year).
- Oscar Gruss & Son, Incorporated from 1997 – 2000 (2 years).
- Shamus Group, Inc. from 1997 – 1997 (<1 year).
- Investors Associates, Inc. from 1994 – 1997 (3 years) – Expelled.
- Whale Securities Co., L.P. from 1993 – 1993 (<1 year).
- Lehman Brothers Inc. from 1984 – 1993 (9 years).
- Blinder, Robinson & Co., Inc. from 1982 – 1983.
It is noteworthy to point out that earlier in Mr. Tricarico’s career, he worked at Investors Associates, Inc., which was expelled by FINRA shortly after Mr. Tricarico departed from the firm.
Also notable is that Mr. Tricarico’s current suspension is not the first time he has been suspended. In 1993, Mr. Tricarico was censured and suspended for nine months by the New York Stock Exchange for opening two securities accounts and executing the first trades in those accounts without the customers’ knowledge and authorization. The New York Stock Exchange found Mr. Tricarico engaged in conduct inconsistent with just and equitable principles of trade.
Finally, it is also not the first time that Mr. Tricarico has been accused of excessive trading. In 1990, a customer alleged that his account was churned (excessively traded). Then, again, in 1994, a customer made several allegations against Mr. Tricarico, including churning (excessive trading), unauthorized trading, and failure to disclose information.
Aegis Capital Corp. – Supervisory Duties
Brokerage firms like Aegis Capital Corp. must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as excessive trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise their financial advisors or the investment account activity, they may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
Securities arbitration is a unique and complex practice area. Investors should seek out experienced counsel who understands the FINRA forum and can navigate the arbitration process to effectively advocate on their behalf.
If you or a loved one were a customer of Anthony Tricarico and either sustained financial losses or suspect inappropriate activity, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.
See Also:
Steven Robert Luftschein, Formerly with Aegis Capital Corp, Barred by FINRA
Aegis Capital Fined and Censured by FINRA
Former Aegis Capital Broker Edmund Zack Suspended by FINRA – New York, NY
Iorio Altamirano LLP Files GPB Automotive Claim Against Aegis Capital Corp