Marc Anthony Arena of Westbury Connecticut a stockbroker formerly employed by National Securities Corporation is referenced in a customer initiated investment related arbitration claim which was settled for $400,000.00 in damages supported by allegations that (1) Arena breached his contractual obligations to the customer (2) Arena negligently transacted in the customer’s account (3) Arena breached his fiduciary duties to the customer and (4) Arena effected over-the-counter equities and insurance transactions that were not suitable for the customer while Arena was associated with National Securities Corporation and Newport Coast Securities Inc. Financial Industry Regulatory Authority (FINRA) Arbitration No. 16-01570 (July 30, 2018).
FINRA Public Disclosure confirms that Arena is referenced in two more customer initiated investment related disputes containing accusations of Arena’s misconduct during the time that he was associated with Newport Coast Securities. Particularly, a customer initiated investment related arbitration claim concerning Arena’s conduct was settled to resolve allegations against Arena of being responsible for breaching fiduciary obligations to the customer; making misrepresentations concerning the terms and conditions of over-the-counter equities; and churning the customer’s investment portfolio. FINRA Arbitration No. 11-04698 (July 3, 2013). Thereafter, a customer initiated investment related arbitration claim regarding Arena’s activities was settled for $110,000.00 in damages based upon accusations against Arena of negligence; breach of contract; breach of fiduciary duty; omissions; misrepresentation; unauthorized trading; excessive trading; and suitability concerning the over-the-counter equities held in the customer’s investment account. FINRA Arbitration No. 13-02565 (Nov. 5, 2014).
FINRA Public Disclosure further reveals that Arena has been suspended from associating with any FINRA member in any capacity according to an Order Accepting Offer of Settlement containing findings that Arena neglected to supervise stockbrokers who placed trades in customer accounts on an excessive basis and who churned customers’ investment accounts. Department of Enforcement v. Newport Coast Securities Inc. et al. Disciplinary Proceeding No. 2012030564701 (Oct. 20, 2015).
FINRA found that Arena was responsible for supervising Douglas Anthony Leone (a stockbroker barred by FINRA on May 21, 2018) among other stockbrokers who executed excessive trades and churned accounts of Newport Coast Securities customers. Supposedly, Arena failed to address red flags evidencing, inter alia: a suspicious volume of trades in customer accounts; excess concentrations of customers’ accounts in speculative investments; large losses; turnover rates exceeding 100; cost-to-equity ratios exceeding 100 percent; and exorbitant commissions. The Order stated that Arena failed to take appropriate action to address the stockbrokers’ egregious activities. Consequently, FINRA found Arena’s conduct violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 3010.
Arena’s registration with National Securities Corporation has been terminated as of April 7, 2017. Since April 13, 2017, Arena has been associated with Spartan Capital Securities LLC.
