The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Anthony Fusco. According to his publicly available FINRA BrokerCheck report, Anthony Fusco has been the subject of a customer complaint.

Anthony Fusco was a New York based securities broker. He worked in the securities industry for sixteen years. During his career, he was registered with six different securities firms.

His Registrations

  • Norfolk Securities Corp. (1996)
  • PCM Securities (1996)
  • Continental Broker-Dealer Corp. (1997)
  • LT Lawrence & Co. (1997)
  • Legend Trading (2009-2013)
  • Legend Securities (2001-2017)

The Allegations

Anthony Fusco’s publicly available FINRA BrokerCheck report shows that he received a customer complaint in April 2015. The customer in this case alleged that Fusco breached his fiduciary duty, churned their account, engaged in fraud, made material manipulation, misrepresentations, and non-disclosures, omitted material facts, executed trades without authorization, violated blue sky laws, and handled their account negligently. This case went to arbitration where the customer was awarded $110,622 in damages.

Churning

The notable allegation against Anthony Fusco was that he churned his customers’ accounts. This a fraudulent trading practice that originates from the method that securities brokers are compensated for their services. Essentially, securities brokers charge their customers a percentage of their principal investment whenever they execute a transaction on their behalf. This percentage is the broker’s commission for brokering the trade. The way that securities brokers increase their income as their career progresses is different than other occupations. As their skills and experience as a broker grow, so will the quantity and quality of investors that trust them with their money. As the amount they are investing grows, so do their commissions. However, there are some securities brokers, like Anthony Fusco, who wish to circumvent this natural progression and work to increase their commissions through more fraudulent means–such as churning. This fraudulent trading practice occurs when a securities broker trades an investor’s account excessively with the express purpose of increasing the amount they receive in commissions. This is done at the investor’s expense because this type of trading often causes them to experience significant losses. This is because excessive trading not only prevents their investments from seeing any sort of growth, but also causes the customer to incur substantial fees that rack up and cause their principal investment to significantly deteriorate.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Anthony Fusco, please contact Oakes & Fosher for a free and private consultation.