The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Philip Sparacino. According to his publicly available FINRA BrokerCheck report, Philip Sparacino has been the subject of multiple customer disputes.

Philip Sparacino was a New Jersey-based securities broker. He worked in the securities industry for eleven years. During his career, he was registered with six different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Investors Capital Corp. (2007-2008)
  • Newbridge Securities Corporation (2008)
  • Mercer Capital LTD (2008-2010)
  • Brookstone Securities (2010-2012)
  • Alexander Capital (2012-2014)
  • First Standard Financial Company (2014-2019)

The Allegations 

  • In December 2018, a customer alleged that Philip Sparacino churned their account and executed unsuitable trades. This case is currently pending. The customer is seeking $90,198 in damages.
  • In October 2019, a customer alleged that Philip Sparacino executed unauthorized trades and charged them excessive commissions.
  • In November 2019, Philip Sparacino was officially sanctioned by FINRA. The findings in this matter state that Sparacino failed to produce information FINRA had requested during an investigation into allegations against him that included unauthorized trading, excessive trading, and unsuitable trading. Due to this alleged failure to comply, Philip Sparacino was barred from acting as a securities broker in any fashion.

Churning 

Churning is a deceptive trading practice that centers around a securities broker excessively trading their customer’s account. It primarily has to do with the method that brokers are compensated for their services. Many brokers receive compensation by charging their customer a percentage of their principal investment every time they execute a transaction on their behalf. This manner of compensation motivates less than scrupulous brokers to execute more transactions than are necessary simply to increase the amount they receive in commissions. When a securities broker trades their customer’s account excessively with the express intent of increasing their own commissions, they have officially churned the account.

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 Philip Sparacino, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.