Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » Worden Capital Settles FINRA Arbitration Claim Alleging Breach Of Fiduciary Duty

stockbroker misconduct

Albert Foronda of New York, NY, a stockbroker registered with Worden Capital Management LLC, was the subject of a customer initiated investment related FINRA securities arbitration claim that was settled for $50,000.00 in damages based upon allegations that Foronda breached his fiduciary duties, breached a contract, and was negligent in connection with the recommendation and sale of stocks and over-the-counter equities when Foronda was associated with Worden Capital Management LLC. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01479 (March 30, 2022).

FINRA Public Disclosure shows that Foronda has been referenced in four other customer initiated investment related disputes concerning Foronda’s conduct while associated with securities broker dealers. On October 11, 2017, a complaint involving Foronda’s conduct was settled for $14,000.00 in damages based upon allegations that Foronda engaged in unauthorized trading in stocks during the time that Foronda was associated with Worden Capital Management LLC.

Foronda was also referenced in a FINRA securities arbitration claim that was settled for $385,000.00 in damages based upon allegations that Foronda made unsuitable recommendations, engaged in excessive trading, and was negligent in connection with the sale of stocks and options during the period that Foronda was associated with Spartan Capital Securities LLC. FINRA Arbitration No. 19-01160 (September 1, 2020).

On December 10, 2021, a different customer filed an investment related FINRA securities arbitration claim involving Foronda’s conduct in which the customer requested $36,836.24 in damages based upon allegations that Foronda churned the customer’s accounts, made unsuitable recommendations, breached his fiduciary duties, breached a contract, made misrepresentations of material fact, engaged in unauthorized trading, and that Spartan Capital Management LLC failed to supervise certain him in connection with the sale of stocks and private placements. FINRA Arbitration No. 21-02950.

Foronda is also referenced in a FINRA securities arbitration claim in which the customer requested $49,016.00 in damages based upon allegations that Foronda made unsuitable recommendations and engaged in excessive trading during the time that Foronda was associated with Worden Capital Management LLC. FINRA Arbitration No. 22-00347 (March 16, 2022).

On January 17, 2020, Foronda was fined $7,500.00 and suspended for forty-five from associating with any FINRA member in any capacity because Foronda engaged in unauthorized trading. Letter of Acceptance, Waiver, and Consent No. 2017055395301.

According to the AWC, from June 2017 through August 2017, during the time that he was associated with Worden Capital Management LLC, Foronda executed eight unapproved transactions in two customer accounts without customers’ written or verbal authorizations. Foronda also effected 48 discretionary transactions in two accounts of married customers. He did not have prior written authorizations from the customers nor authorization from the securities broker dealer to engage in discretionary trading. Therefore, Foronda violated FINRA Rule 2010 and NASD Rule 2510(b).

Foronda was associated with Worden Capital Management LLC in New York, NY, as a stockbroker from November of 2016 to August of 2017, and associated with Spartan Capital Securities LLC in New York, NY, as a stockbroker from August of 2017 to July of 2022.