John Alexander Tarpinian of New York New York a stockbroker formerly registered with Paulson Investment Company LLC and Newport Coast Securities is referenced in a customer initiated investment related arbitration claim in which the customer sought unspecified damages founded on accusations that between February of 2013 and March of 2019: (1) fiduciary obligations were breached (2) contractual obligations to the customer had not been complied with (3) transactions were unsuitable (4) the customer had been defrauded and (5) Paulson Investment Company and Newport Coast Securities failed to supervise corporate debt purchases or sales made by the stockbroker. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03162 (Oct. 23, 2019).
FINRA Public Disclosure reveals that Tarpinian has been identified in eleven more customer initiated investment related disputes containing allegations of his misconduct while employed with PaineWebber Incorporated, Paulson Investment Company and Newport Coast Securities. Specifically, a customer initiated investment related complaint involving Tarpinian’s conduct was settled for $13,873.43 in damages on October 2, 2018 based upon accusations that between September of 2017 and November of 2017, Tarpinian gave the customer bad investment advice about corporate debt investments.
Tarpinian is the subject of another customer initiated investment related written complaint which was resolved for $17,327.39 on October 2, 2018 supported by allegations that investment recommendations were not suitable and had caused the customer to experience undue losses. Also, a customer filed an investment related arbitration claim involving Tarpinian’s activities where the customer requested unspecified damages founded on accusations that between August of 2015 and May of 2019, transactions in the customer’s account were negligently supervised; contractual obligations had been violated; transactions effected by the stockbroker failed to be suitable; and the customer had been defrauded. FINRA Arbitration No. 19-01009 (Apr. 30, 2019).
Tarpinian is additionally the subject of a customer initiated investment related arbitration claim in which the customer sought $200,000.00 in damages based upon allegations that between March of 2013 and April of 2019: fiduciary duties were breached; transactions executed in the customer’s account failed to be suitable; contractual obligations had not been complied with; and a fraud was committed against the customer by investing in corporate debt products at Tarpinian’s direction when the stockbroker was associated with Paulson Investment Company and Newport Coast Securities. FINRA Arbitration No. 19-01165 (May 6, 2019).
Tarpinian has also been censured, fined $25,000.00 and ordered by Securities and Exchange Commission (SEC) to cease and desist violating federal securities laws according to an Order Instituting Administrative Proceedings based upon findings that Tarpinian effected undisclosed trades with customers during the time that he was employed by Newport Coast Securities. In the Matter of John Tarpinian Administrative Proceeding No. 3-18337 (Jan. 17, 2018).
According to the Order, thousands of trades were placed between the proprietary trading account at Newport to customers’ advisory accounts without customers having provided consent and without Tarpinian disclosing his role as principal in those transactions. SEC also stated that mark-ups and mark-downs charged to customers were not disclosed by Tarpinian; and the stockbroker illicitly obtained $50,000.00 on principal trades from his customers. Tarpinian’s conduct was found by SEC to be violative of Investment Advisers Act Section 206(3).
Tarpinian’s employment with Newport Coast Securities Inc. was terminated on January 6, 2016. He was registered with Paulson Investment Company between December 4, 2015 and September 7, 2018. Since January 13, 2004, Tarpinian has been employed by five different securities broker dealers, three of which have been expelled by regulators for violation of federal securities laws or are otherwise defunct.
