Philip Orezio Fatta of New York New York a stockbroker formerly registered with Blackbook Capital LLC has been fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by consenting to findings that he executed unsuitable trades in customer’s investment accounts. Letter of Acceptance, Waiver and Consent, No. 2016047619002 (May 8, 2018).
According to the AWC, from August of 2014 to April of 2016, Fatta placed trades in customer MW’s investment account on an unsuitable basis. Particularly, the AWC stated that MW had limited finances due to being retired. Fatta was apparently the driving force behind the trades that were placed in the customer’s accounts, as MW accepted the recommendations that Fatta made regarding the types of trades to be placed.
The AWC stated that from August of 2014 to April of 2016, the annual cost-to-equity ratio in the customer’s account was forty one percent and annual turnover rate was seven. MW reportedly sustained a $98,000.00 loss as a consequence of the high rate in which trades had been effected in the customer’s account. FINRA found that Fatta’s conduct was violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure confirms that Fatta has been subject of three additional regulatory enforcement actions. In particular, on July 5, 2016, Fatta was fined $14,000.00 and suspended for three months by National Association of Securities Dealers (NASD) founded on accusations that he altered customer account documentation to establish investment accounts or otherwise transfer funds belonging to customers; executed transactions in customer accounts on an excessive basis; and generated excessive commissions. Letter of Acceptance, Waiver and Consent, No. E1020040299-05 (July 3, 2006). According to that AWC, between January 6, 2014 and April 5, 2004, during the time that Fatta was associated with First Hudson Financial Corp, Inc., he charged customers commissions ranging between five percent and fifty-four percent. NASD concluded that there were no factors which justified the high commissions assed to customers, and found Fatta’s conduct to be violative of NASD Rules 2110 and 3110.
Fatta has also been twice suspended by FINRA between June 20, 2017 and November 20, 2017 based upon allegations that he neglected to comply with an arbitration award or otherwise confirm with FINRA that he had complied.
FINRA Public Disclosure further reveals that Fatta has been identified in ten customer initiated investment related disputes containing accusations of his wrongdoing while employed by Blackbook Capital LLC, IAA Financial LLC, Legend Securities, Inc., J.P. Turner & Company LLC, Sharpe Capital, Inc. and First Hudson Financial Group, Inc. Specifically, a customer initiated investment related arbitration claim concerning Fatta’s activities was settled for $125,000.00 in damages based upon allegations of unauthorized trading and churning of the customer’s equity portfolio. National Association of Securities Dealers (NASD) Arbitration No. 00-00716 (May 15, 2001).
Thereafter, a customer initiated investment related arbitration claim regarding Fatta’s conduct was resolved for $150,000.00 in damages founded on accusations that Fatta supervised a person who converted the customer’s funds, placed unauthorized trades in the customer’s account and churned the customer’s equity portfolio. National Association of Securities Dealers (NASD) Arbitration No. 01-04181 (June 9, 2003). Another customer initiated investment related arbitration claim pertaining to Fatta’s activities was settled for $350,000.00 in damages supported by allegations of breach of fiduciary duty, suitability, excessive commissions, misrepresentation, and unauthorized and excessive trading in the customer’s investment account. FINRA Arbitration No. 08-703 (Nov. 3, 2008).
Moreover, a customer was awarded $25,791.76 in damages according to an investment related arbitration claim regarding Fatta’s misconduct, based upon Fatta having been found liable on the customer’s claims that he made misrepresentations to the customer, breached his contractual duties, breached his fiduciary duties, negligently transacted in the customer’s investment account, effected unauthorized trades, executed unsuitable transactions and churned the customer’s securities portfolio. FINRA Arbitration No. 15-02269 (Apr. 12, 2017).
Another customer was awarded $643,608.25 in damages according to an investment related arbitration claim involving Fatta’s misconduct, based Fatta being liable on the customer’s claims of negligence, breach of fiduciary duty, fraud, churning, breach of contract and suitability. FINRA Arbitration No. 16-01492 (July 14, 2017).
Fatta’s employment with Blackbook Capital, LLC was terminated on June 20, 2016. Since October 15, 1996, Fatta has been associated with fourteen different broker dealers, eleven of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct. #cockroach
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