Erik Patrick Pica (also known as Eric Patrick Pica) of New York New York a stockbroker currently registered with Joseph Stone Capital L.L.C. has been charged in a Complaint brought by Financial Industry Regulatory Authority which alleged that Pica converted funds from a customer during the period in which he was associated with Joseph Stone Capital L.L.C. Department of Enforcement v. Erick Patrick Pica Disciplinary Proceeding No. 2019061947501 (Oct. 25, 2019).
According to the Complaint, a total of $200,000.00 in funds had been misused or otherwise converted by Pica in February 2019. Allegedly, the funds had been provided by an elderly customer to Pica for purposes of investing in a brokerage account at Joseph Stone. The Complaint stated that the customer was instructed by Pica to make out a check for $200,000.00 payable to a company solely owned by Pica called Light Capital Group.
The Complaint indicated that contrary to the promises Pica made, he never deposited the funds in the Joseph Stone brokerage account. Pica allegedly placed the customer’s funds into his own account and then spent the funds on a home for him and his spouse. FINRA Department of Enforcement alleged that the customer’s funds were converted by Pica; conduct violative of FINRA Rules 2010 and 2150.
The Complaint also stated that the elderly customer and Joseph Stone were told lies by Pica in regard to the funds provided to him by the customer. Specifically, FINRA alleged that Pica was probed by the customer in May of 2019 as to the whereabouts of the customer’s funds. Pica purportedly lied to the customer in response, stating that the funds were in the customer’s Joseph Stone brokerage account. The Complaint alleged that Pica changed his story when the customer probed him again, this time telling the customer that the check had not been cashed yet. FINRA also alleged that between February of 2019 and March of 2019, Joseph Stone was led by Pica to believe that he did not make off with the customer’s funds. The Complaint charges Pica with making false statements to both Joseph Stone and the elderly customer; conduct violative of FINRA Rule 2010.
In addition, FINRA alleged that Pica lied when he was under an investigation in May of 2019 and he concealed his access to his branch office at a time that FINRA attempted to conduct an examination there. FINRA claimed that when Pica provided recorded testimony, he falsely attested to not having informed the customer about the deposit of the customer’s $200,000.00 in funds within the brokerage account at Joseph Stone; and he falsely attested to not having told his manager about returning funds. FINRA also alleged that Pica failed to provide information and documentation as part of the investigation into his activities including his purported purchase of a home with the customer’s funds; conduct violative of FINRA Rules 2010 and 8210.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Pica has been identified in seven customer initiated investment related disputes which pertain to allegations of his misconduct while employed with securities broker dealers including Joseph Stone Capital and Global Arena Capital Corp. Particularly, a customer filed an investment related arbitration claim concerning Pica’s conduct where the customer requested $120,000.00 in damages founded on accusations that false or misleading statements had been made by the stockbroker; contractual obligations to the customer had been breached; and fiduciary duties were violated with regard to the over-the-counter equities transactions executed in the customer’s account. FINRA Arbitration No. 17-01681 (July 3, 2017).
On March 21, 2018, another customer filed an investment related complaint in regard to Pica’s activities in which the customer sought $500,000.00 in damages based upon allegations including negligent supervision, churning, excessive commissions, and bad over-the-counter equities transactions by the stockbroker. Also, a customer filed an investment related arbitration claim involving Pica’s conduct where the customer requested $7,613.65 in damages supported by accusations that Valeant Pharmaceutical and Rite Aid Corp. over-the-counter equities were traded in the customer’s account without permission. FINRA Arbitration No. 18-01506 (Apr. 27, 2018).
Pica is referenced in an additional customer initiated investment related arbitration claim in which the customer sought $293,000.00 in damages founded on allegations that leveraged exchange traded fund transactions effected by the stockbroker failed to be suitable for the customer; the customer’s account was over-concentrated in bad investments; and Global Arena Capital Corp failed to supervise Pica’s activities. FINRA Arbitration No. 18-01555 (May 4, 2018).
Pica has been employed by Joseph Stone Capital L.L.C. since April 17, 2015.
