Anthony Tricarico of New York New York a stockbroker formerly registered with Aegis Capital Corp has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he made unsuitable trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2016051704304 (Jan. 22, 2021).
According to the AWC, during the period that Tricarico was associated with Aegis Capital Corp, he engaged in excessive trading in customer accounts. FINRA indicated that trades made by the stockbroker had caused his customers to experience high turnover rates and cost-to-equity ratios. Those customers paid high commissions and incurred losses by following Tricarico’s advice.
As an example, the regulator indicated that two customers collectively maintained medium risk tolerances and investment objectives of growth. Their account at Aegis Capital Corp was subjected to an annual turnover rate of 46.58 and annual cost-to-equity ratio of 161.7 percent. These transactions led the customers to lose $28,318.00 while having to pay $30,615.00 between trading costs and commissions.
A different customer maintained a high risk tolerance and investment objectives of growth. Tricarico caused that customer to experience an annual turnover rate of 17.73 and cost-to-equity ratio of 91.48 percent. The customer sustained $11,530.00 in losses while having to pay $14,118.00 in commissions.
The AWC revealed that customers whose accounts were excessively traded had allowed Tricarico to control their accounts because they consistently went along with his recommendations. FINRA determined that Tricarico’s excessive trading equated to quantitative unsuitability. The stockbroker violated FINRA Rules 2010 and 2111 for this reason.
This is not the first time that Tricarico has been the subject of a disciplinary action taken by a securities regulator. He was sanctioned by New York Stock Exchange to resolve accusations that he established customer accounts without their knowledge or consent and that he made trades on an unauthorized basis. Tricarico’s application for registration as a stockbroker in New Jersey was also denied by New Jersey Bureau of Securities based upon allegations that he was unethical and dishonest in the securities industry.
Tricarico has been identified in two customer initiated investment related disputes concerning accusations of his misconduct when he was associated with Lehman Brothers. FINRA Public Disclosure reveals that Tricarico has been referenced in a customer initiated investment related FINRA securities arbitration claim which was settled for $20,000.00 in damages founded on allegations that the customer’s account had been churned.
Another customer initiated investment related FINRA securities arbitration claim regarding Tricarico’s conduct was settled for $90,000.00 in damages supported by accusations of breach of fiduciary duty and unauthorized trading by Tricarico. According to the claim, the stockbroker excessively traded in the customer’s account at Lehman.
Tricarico was registered with Aegis Capital Corp between March 23, 2010 and July 30, 2020.
