Anthony Sica, of New York, New York, a stockbroker currently registered with Joseph Gunnar & Co. LLC, has been fined $20,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he made unsuitable investment recommendations to the customer and placed unauthorized trades in the customer’s investment portfolio. Letter of Acceptance, Waiver and Consent, No. 2013039507101 (Nov. 30, 2017).
According to the AWC, Sica was responsible for servicing the investment accounts of customer JM, a seventy-year old widow. Apparently, customer JM had a $300,000.00 net worth, was unemployed and depended on a fixed income. The AWC stated that customer JM initially had a moderate risk tolerance, and objectives of growth and income.
The AWC stated that the recommendations Sica made to customer JM were not suitable for several reasons. In particular, Sica recommended many times that customer JM invest in speculative, high risk securities that were not consistent with the investment profile of customer JM. In one case, the AWC revealed that customer JM was advised to make a $72,000.00 investment in an initial public offering of a pharmaceutical company. Yet, the prospectus reportedly stated that the investment was highly risk; that the company’s ongoing losses increased the company’s concern about its continuation of business. The AWC stated that the investment was held by customer JM for two days before it was sold at a loss.
The AWC additionally stated that customer JM’s assets were overly concentrated in speculative investments as a result of the recommendations made by Sica. Critically, the majority of customer JM’s liquid assets were invested in those speculative investments. The AWC stated that Sica then advised customer JM to make a $104,850.00 investment in a drug development entity. Apparently, the investment was deemed highly risky, as the company sustained losses annually since it was created in 2000. Thirty-five percent of Sica’s net worth was placed in the investment, which was sold at a loss on the same day of purchase.
Moreover, Sica apparently traded in a short-term trading strategy, in which he executed in-and-out trades of highly risky securities in the accounts owned by customer JM. Evidently, Sica’s routine recommendations involved the trading of customer JM’s assets with a large portion of her net worth, which ultimately caused her to lose approximately $150,000.00. FINRA found that Sica’s conduct in that regard was violative of FINRA Rules 2111, 2010 and NASD Rule 2310.
Additionally, the AWC stated that Sica was the broker for customer FL’s two individual retirement accounts held at Joseph Gunnar. Apparently, Sica was notified that customer FL was deceased; however, he then effected seven securities sales and four securities purchases in customer FL’s individual retirement accounts. Consequently, customer FL sustained $3,039.00 in investment losses as a result of Sica’s unauthorized trading in her account. FINRA found that Sica’s conduct was violative of FINRA Rule 2010.
FINRA Public Disclosure reveals that Sica has been identified in nine customer initiated investment related disputes containing accusations of his misconduct while employed with Joseph Gunnar & Co. LLC, Prudential Services Incorporated, and Shearson Lehman Brothers, Inc. Specifically, on March 20, 2002, a customer initiated investment related written complaint involving Sica’s conduct was settled for $35,380.64 in damages supported by allegations that Sica effected unsuitable transactions in the customer’s account concerning real estate investment trust and stock positions.
Further, a customer initiated investment related arbitration claim involving Sica’s conduct was settled for $157,500.00 in damages based upon accusations that Sica negligently handled the customer’s investment account, and effected mutual fund, stock and over-the-counter equity transactions in the customer’s account that were not suitable for the customer. Arbitration No. 10-00969 (July 12, 2010).
Thereafter, a customer initiated investment related arbitration claim involving Sica’s conduct was settled for $302,500.00 in damages based upon accusations that Sica placed stock and over-the-counter equity trades in the customer’s investment portfolio that were not suitable, and effected them on an excessive basis without the customer’s authorization. FINRA Arbitration No. 14-01574 (Jan. 24, 2015). Moreover, a customer filed an arbitration claim relating to Sica’s activities, where the customer sought $49,181.77 in damages founded on allegations of churning, suitability and breach of fiduciary duty concerning stock transactions effected in the customer’s account from August of 2011 to March of 2015. FINRA Arbitration No. 17-02160 (Aug. 21, 2017).
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