Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has suspended stockbrokers Alfonse Stazzone and Maxim Beliakov from the securities industry for four months. The financial advisors consented to the suspension after FINRA alleged that, while associated with Woodstock Financial Group, Inc., they excessively and unsuitably traded a customer’s account between September 2017 and August 2018. FINRA also fined both brokers $5,000 each.
Customers of Messrs. Stazzone and Beliakov or Woodstock Financial Group, Inc. who have suffered financial losses, or suspect that the brokers did not have their best interest in mind when recommending investments or making account transactions, can contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Woodstock Financial Group, Inc.
FINRA Letter of Acceptance, Waiver, and Consent Nos. 2018060806601 and 2018060806602
FINRA and Mr. Stazzone entered into Letter of Acceptance, Waiver, and Consent No. 2018060806601 on August 16, 2021.
FINRA and Mr. Beliakov entered into Letter of Acceptance, Waiver, and Consent No. 2018060806602 on August 16, 2021.
In both instances, FINRA alleged that between September 2017 and August 2018, while the brokers were registered through Woodstock Financial Group, Messrs. Stazzone and Beliakov engaged in quantitatively unsuitable trading in the account of their customer, a 57-year-old manager at a printing company whose only prior experience with securities was with mutual funds in his retirement account. The funds with which the customer opened his account at Woodstock Financial Group came from savings bonds. Messrs. Stazzone and Beliakov recommended all of the trades in the customer’s account, and the customer followed their recommendations. As a result, Messrs. Stazzone and Beliakov exercised de facto control over the customer’s account.
Messrs. Stazzone and Beliakov recommended frequent trading in the customer’s s account, which resulted in an annualized cost-to-equity ratio of 221.56. As a result, the customer’s investments would have had to grow by more than 221 percent to break even. The customer paid more than $173,000 in commissions during this period.2 The securities transactions recommended by Messrs. Stazzone and Beliakov in the customer’s account were excessive and unsuitable given the customer’s investment profile.
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.
Accordingly, Messrs. Stazzone and Beliakov violated FINRA Rules 2111 and 2010.
Financial Advisor Alfonse Joseph Stazzone (CRD No. 4908107)
Alfonse Joseph Stazzone has 16 years of experience in the securities industry and has been associated with nine different firms, including one firm that has been expelled from the industry by FINRA. He is not currently registered with any brokerage firm. Most recently, Mr. Stazzone has been associated with the following firms:
- Monmouth Capital Management LLC in Holmdel, NJ, from April 2021 to July 2021.
- Garden State Securities, Inc. in Red Bank, NJ, from November 2019 to March 2021
- Woodstock Financial Group, Inc. in Staten Island, NY, from May 2013 to December 2019.
- Chelsea Financial Services in Staten Island, NY, from February 2011 to May 2013.
According to his public disclosure report with FINRA, Mr. Seale has been the subject of at least three customer disputes. Most recently, a customer filed a securities arbitration complaint alleging $148,500 in damages as a result of unsuitable trading. The matter was settled by Chelsea Financial Services, the firm that employed Mr. Stazzone when the alleged conduct occurred, for $60,000.
FINRA’s BrokerCheck tool can be used to obtain Mr. Stazzone’s complete and updated disclosure report.
Financial Advisor Maxim Beliakov (CRD No. 5968432)
Maxim Beliakov has nine years of experience in the securities industry and has been associated with the following firms:
- Garden State Securities, Inc. in Red Bank, NJ, from November 2019 to March 2021
- Woodstock Financial Group, Inc. in Staten Island, NY, from May 2013 to December 2019.
- Chelsea Financial Services in Staten Island, NY, from February 2011 to May 2013.
Mr. Beliakov is not currently registered with any broker-dealer.
FINRA’s BrokerCheck tool can be used to obtain Mr. Beliakov’s complete and updated disclosure report.
Woodstock Financial Group, Inc. – A Duty to Supervise
Financial institutions like Woodstock Financial Group, Inc. must properly supervise financial advisors and customer accounts. Brokerage firms must 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 supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have suffered investment losses with Alfonse Stazzone, Maxim Beliakov, or Woodstock Financial Group, Inc., or suspect other inappropriate activity occurred in your investment or retirement account, 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 review of your legal rights.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.
Iorio Altamirano LLP is a bilingual law firm, fluent in both English and Spanish.