James Robert Pecoraro of Melville, New York, a stockbroker formerly registered with SW Financial has been fined $10,000.00 and suspended for nine months from associating with any FINRA member in any capacity based upon allegations that Pecoraro engaged in quantitatively unsuitable excesive trading in customer accounts. Letter of Acceptance Waiver and Consent No. 2017056820701 (Aug. 4, 2022).
According to the AWC, from October 2016 to May 2019, Pecoraro excessively traded the accounts of three customers while he was employed with SW Financial. In Customer A’s account, Pecoraro executed 109 transactions that resulted in an annualized cost-to-equity ratio of 57.58 percent and an annualized turnover rate of 13.47. This resulted in the customer being charged $35,370.00 in commissions and $41,432 in trading costs. The customer experienced $31,007.00 in realized losses.
From January 2017 to February 2018, Pecoraro executed 69 transactions in Customer B’s account, causing an annualized cost-to-equity ratio of 175.19% and an annualized turnover rate of 46.64. This caused the customer to be charged $33,516.00 in commissions and $37,433 in trading costs. Customer B experienced $27,850 in realized losses.
From February 2017 to October 2018, Pecoraro executed 147 transactions in Customer C’s account, causing an annualized cost-to-equity ratio of 174.03% and an annualized turnover rate of 57.97. This resulted in Customer C being charged $165,437.00 in commissions and $184,053 in trading costs. Customer C collectively realized $166,018.00 in losses. Therefore, Pecoraro violated FINRA Rules 2010 and 2111.
Public Disclosure shows that Pecoraro is referenced in eleven total customer initiated investment related disputes concerning Pecoraro’s conduct while associated with securities broker dealers, including SW Financial, Rockwell Global Capital LLC, and JP Turner Company. Pecoraro is referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $55,000.00 in damages based upon allegations that Pecoraro made unsuitable and unauthorized transactions, churned the customer’s account, and breached a fiduciary duty in connection with the recommendation and sale of over-the-counter equities when Pecoraro was associated with JP Turner Company. FINRA Arbitration No. 08-00752 (June 26, 2009).
On July 10, 2017, another customer initiated investment related FINRA securities arbitration claim involving Pecoraro’s activities was settled for $13,500.00 in damages based upon allegations that Pecoraro breached a contract, breached a fiduciary duty, and acted negligently with regard to the sale of stocks and corporate bonds when Pecoraro was associated with Rockwell Global Capital LLC. FINRA Arbitration No. 17-01458.
On August 26, 2019, a different arbitration claim involving Pecoraro’s conduct was settled for $36,000.00 in damages based upon allegations that Pecoraro made unauthorized and unsuitable transactions, acted negligently, committed fraud, made misrepresentations, and breached a fiduciary duty when Pecoraro was associated with SW Financial. FINRA Arbitration No. 19-00482.
On November 23, 2021, a complaint involving Pecoraro’s activities in which the customer requested $12,230.00 in damages based upon allegations that Pecoraro made unauthorized transactions at SW Financial.
Seven of the ten last brokerage firms where Pecoraro worked have been expelled by regulators or are otherwise defunct.
Since 2019, Pecoraro has been associated with Spartan Capital Securities LLC. From 2016 to 2019, he was associated with SW Financial, and from 2015 to 2016, he was associated with Primary Capital LLC.
