In July 2017, Philip Marchese, of New York, New York, a stockbroker formerly registered with Legend Securities, Inc., was the subject of a customer initiated investment related arbitration claim seeking $825,000.00 in damages based upon allegations that he made investment based misrepresentations to the customer, violated the Minnesota Securities Act, breached his fiduciary and contractual obligations, violated FINRA Rules 2020 and 2010, negligently handled the customer’s investment accounts, and effected over-the-counter equities transactions that were not suitable.
According to FINRA Public Disclosure, Statement of claim alleged: negligence, widely unsuitable transactions, negligent management of accounts and registered representatives, violation of FINRA Rule 2010 and FINRA Rule 2020, violation of the Minnesota Securities Act, breach of fiduciary duty, common law fraud and misrepresentation, breach of contract, and respondent superior.
The claim appears to have settled on December 22, 2016, for $50,000.00.
It also appears that in response to this claim, Marchese wrote that he “denies all allegations submitted by [customer]. the trading of his account was based off [customer’s] request to make back the funds he lost as his national securities account in a short period of time. [customer] was very aware of the speculation approach needed to accomplish his request and the risk associated with it. During the duration of [customer’s] account here at legend securities the rep spoke to him very often in regards to every trade and the status of his account. The rep kept [customer] well informed at all times.”
Marchese’s registration with Legend Securities, Inc. was “terminated” on November 9, 2016, meaning that he left for whatever reason.
On November 4, 2016, Marchese became registered with Worden Capital Management LLC on November 4, 2016, and in September 2017, he was “terminated” and left there for whatever reason.
Since September 2017, he has been associated with Spartan Capital.
We stated on July 29, 2017 that “since April 6, 2011, Marchese has been associated with four different broker dealers, three of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.” This information is incorrect. Since April 6, 2011, Marchese has been associated with five different broker dealers, only two of which, Brookstone Securities and Legend Securities, have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.”
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