Anthony Fusco of New York New York a former stockbroker and Chief Executive Officer of Legend Securities Inc. is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer requested $345,369.00 in damages supported by accusations of Fusco failing to supervise Legend stockbrokers who executed unsuitable transactions in the customer’s account. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01325 (May 6, 2020).
According to the claim, the customer was solicited by the stockbroker for purchases of unsuitable securities and their account had allegedly been overconcentrated in risky investments. The claim also alleges churning by the stockbroker.
This is not the first time that Fusco has been the subject of an investment related dispute concerning his improper conduct while he was employed by a securities broker dealer. Fusco is the subject of a customer initiated investment related FINRA securities arbitration claim where the customer was awarded $110,622.95 in compensatory damages and $629,241.78 in punitive damages based on Fusco being found liable for the customer’s losses. FINRA Arbitration No. 15-00802 (June 25, 2019).
The Arbitration Panel found Fusco to be liable for unauthorized trading in the customer’s account and for omissions and misrepresentations concerning securities sold at Legend. Fusco was also found liable for breach of fiduciary duty and for churning the customer’s investment portfolio. The Panel found that the customer was defrauded.
Fusco has also been sanctioned twice by securities regulators. He was sanctioned by Colorado Division of Securities founded on allegations of being a supervisor for unlicensed stockbrokers.
Fusco has also been barred from associating with any FINRA member in any capacity based upon findings that he obstructed FINRA’s investigation into accusations of his failure to supervise stockbrokers at Legend. Letter of Acceptance Waiver and Consent No. 2017054982401 (Nov. 21, 2018). FINRA was investigating problematic trading conduct at Legend Securities that occurred while Fusco was Chief Executive Officer. The regulator indicated that Fusco was responsible for making sure that Legend stockbrokers complied with FINRA rules and federal securities laws. On October 24, 2018, Fusco’s legal counsel made FINRA aware that Fusco would not be making any appearance to testify about his supervision of those stockbrokers. FINRA determined that Fusco violated FINRA Rules 2010 and 8210.
Since April 3, 1996, Fusco has been associated with six different securities broker dealers, four of which have been expelled by regulators for violation of federal securities laws or are otherwise defunct.