MARCH 2019 Update–SEC enters consent judgement vs. William Gennity.
UPDATE April 2017-The FINRA records of William Gennity report the filing of an action by the US Securities and Exchange Commission on 2/2/2017 which seek a cease and desist, disgorgement, revocation, suspension and other relief for alleged violations of the Securities Act of 1933 and Section 10(b) and Rule 10b-5.
A customer of Alexander Capital filed a claim in 2/2016 alleging damages of $660,000 ($300,000 commissions and $360,000 losses) for unsuitable and excessive trading and excessive commissions.
ORIGINAL POST-August 2016- New York
The FINRA records of William C. Gennity, a stock broker who is currently employed by First Standard Financial Company disclose a currently pending regulatory event, two currently pending customer disputes and a prior customer dispute. Follow this for information on customer disputes involving Gennity.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
August 2, 2016, Montana Commissioner of Securities and Insurance (CSI) filed a complaint (CSI Case Number SEC-2016-106) naming William Gennity of Staten Island, NY and:
- Alexander Capital, L.P., his former employing firm
- Joseph Connolly-Staten Island, NY
- Francine Lanaia-Fort Salanga, NY
- Barry Eisenberg-Allentown, PA
- Robert Feinman-Staten Island, NY
The Montana CSI complaint alleges that Montana resident Charles Gravely opened an account with Alexander Capital in April 2013 with about $318,000. During the next 16 months, over 213 trades were made in the account by Alexander Capital brokers William Gennity and Joseph Connolly, resulting in losses of over $200,000 while more than $289,000 in commissions were charged.
The Montana CSI complaint alleges that Gennity engaged in:
- excessive trading
- unauthorized trading
- unauthorized use of margin
- discretionary trading without authority
- unsuitable recommendations
- charging excessive fees
Gennity has been registered with First Standard Financial since 10/2014. He was registered with Alexander Capital from 4/2012-10/2014 and prior to that with Legend Securities from 3/2011-4/2012. From 3/2009-6/2010 he was registered with J.P. Turner & Co.
Churning & The Looper Formula
The Looper turnover rate calculates the dollar amount of purchases during a time period divided by the average account equity annualized. The 2-4-6 ‘rule of thumb’ turnover rate is often used to generally analyze trading:
- Twice a year is ‘suggestive’ of excessive trading
- Four times a year is ‘indicative’ of excessive trading
- Six times a year turnover is ‘conclusive’ of excessive trading
According to the Montana CSI complaint the Looper turnover rate in Graveley’s account was 57.9, based on purchases and 57.1 based on sales.
If you have losses in an account at Alexander Capital, call to discuss your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900