Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » FINRA Sanctions Network 1 Stockbroker For Unsuitable Trading

investment fraud

Charles Vincent Malico (also known as Charlie Malico), of Huntington Station, New York, a stockbroker registered with Network 1 Financial Securities Inc., has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Malico engaged in quantively unsuitable trading in the customer’s account. Letter of Acceptance, Waiver, and Consent No. 2021069405501 (October 11, 2022).

According to the AWC, from July of 2020 through November of 2021, Malico recommended a series of transactions in a customer’s account that were excessive and not in the customer’s best interest based on their investment profile. In one instance, Malico recommended that a 63-year-old customer with a liquid net worth of $50,000.00 make over 350 trades in a little over a year. This caused the customer to pay more than $54,000 in trading costs and commissions.

FINRA states that Malico violated FINRA Rule 2010.

FINRA Public Disclosure shows that Malico is referenced in seven customer initiated investment related disputes concerning Malico’s conduct while associated with securities broker dealers, including J.P. Turner Company LLC, MidAmerica Financial Services Inc., and Network 1 Financial Securities Inc. On February 6, 2008, a customer initiated investment related complaint involving Malico’s conduct was settled for $3,645.76 in damages based upon allegations that Malico engaged in the unauthorized trading of equities during the time that Malico was associated with J.P. Turner Company LLC.

On August 31, 2015, a customer filed an investment related FINRA securities arbitration claim involving Malico’s conduct in which the customer requested $99,990.00 in damages based upon allegations that Malico churned the customer’s account, made unsuitable recommendations, and breached his fiduciary duties in connection with the recommendation and sale of over-the-counter equities during the time that Malico was associated with MidAmerica Financial Services Inc. FINRA Arbitration No. 15-01894.

Malico is also referenced in a FINRA securities arbitration claim in which the customer requested $65,000.00 in damages based upon allegations that Malico was negligent, breached his fiduciary duties, and failed to supervise certain registered representatives’ recommendations of equities when Malico was associated with Network 1 Financial Securities Inc. FINRA Arbitration No. 2102958 (December 2, 2021).

Malico was associated with Network1 Financial Securities Inc. in Huntington Station, NY, as a stockbroker from June of 2016 to April of 2022, and was associated with Network1 Financial Securities Inc. in Huntington Station, NY, as a stockbroker from November of 2015 to March of 2016.