Mark Fred Augusta, of Solana Beach, California, a stockbroker formerly registered with Wedbush Securities Inc., is the subject of a customer initiated investment related arbitration claim, in which the customer was awarded 250,000.00 in compensatory damages, $1,080,000.00 in punitive damages, and $110,000.00 in disgorged commissions on July 13, 2017, supported by allegations against Augusta and Wedbush Securities, Inc. including unauthorized trading, elder financial abuse, unjust enrichment, omissions and misrepresentations, fraud, suitability, breach of fiduciary duty, and violations of federal and state securities laws as well as Financial Industry Regulatory Authority (FINRA) rules and Securities and Exchange Commission (SEC) rules. FINRA Arbitration No. 16-00847 (July 13, 2017).
The customer’s claim related to structured certificate of deposits and municipal bonds effected in the customer’s account, consisting of United CMNTY Blairsville GA CD, JP Morgan Chase Bank NA Columbus Oh CD, Citibank NA Principal Protected Market Linked Certificate of Deposit, and Lloyds TSB Bank Steepner Note. The customer further alleged that Wedbush Securities failed to supervise Augusta’s conduct.
FINRA Public Disclosure reveals that Augusta has been subject of fourteen more customer initiated investment related disputes pertaining to allegations of Augusta’s misconduct during the time he was associated with Wedbush Securities, Inc., Miller & Schroeder Financial, Inc. and Hilltop Securities Inc. Specifically, on October 5, 2001, a customer was awarded $168,400.00 in damages according to an investment related arbitration claim involving Augusta’s misconduct, supported by allegations that Augusta made misrepresentations to the customer regarding municipal bonds that the customer purchased and which went into default. Subsequently, on November 1, 2000, a customer initiated investment related written complaint regarding Augusta’s activities was resolved for $4,000.00 in damages supported by allegations including elder abuse, suitability and misrepresentation.
Then, on March 7, 2002, a customer was awarded $833,125.00 in damages according to an investment related arbitration claim involving Augusta’s misconduct, supported by allegations that Augusta effected inappropriate corporate and municipal bond transactions in the customer’s account. The customer accused Augusta of failing to effect suitable transactions in consideration of the customer’s tolerance for risk, age, and objectives for investing. Thereafter, on April 1, 2002, a customer was awarded $41,250.00 in damages according to an investment related arbitration claim involving Augusta’s activities, supported by allegations that Augusta effected municipal debt transactions in the customer’s account that were not suitable, breached his fiduciary duties to the customer, and misled the customer about investing in Heritage Bonds.
Moreover, on February 9, 2016, a customer initiated investment related written complaint involving Augusta’s conduct was settled for $10,000.00 in damages based on allegations that Augusta effected unauthorized transaction involving Chino Hills municipal bond investments; the customer never authorized the purchase. On August 30, 2017, another customer initiated investment related written complaint regarding Augusta’s activities was settled to resolve allegations that Augusta made unsuitable investment recommendations to the customer regarding certificates of deposit.
Augusta’s employment with Wedbush Securities, Inc. ended on May 27, 2015, supported by allegations that he was identified in a customer initiated investment related complaint. Since May 29, 2015, he has been registered with Hilltop Securities, Inc.
Guiliano Law Group
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