July 2019-New York, NY
The FINRA records of Michael Salvatore Stanton, a financial advisor employed by Worden Capital Management disclose 2 regulatory events, 3 prior customer disputes, 1 pending customer dispute, a pending bankruptcy and 7 outstanding judgments.
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.
In FINRA case # 2015048048801 filed in 11/2016 -FINRA alleged that Stanton and his firm < legend Securities, failed to establish, maintain and enforce a reasonable supervisory system, and failed to prevent a registered representative from churning and excessively trading a customer’s brokerage accounts. The complaint alleges that Stanton and the firm failed to adequately investigate or simply ignored that the registered representative engaged in aggressive “in and out” trading, repeatedly purchasing securities and then selling them after relatively short holding periods to purchase other securities, for no apparent reason. Such in and out trading is the hallmark of excessive trading and churning. Stanton was suspended from FINRA for a period of seven months and was fined $5000.
In March 2017, a Legend Securities,Inc. customer filed FINRA case #16-03695 alleging failure to supervise representative’s excessive trading and unsuitable recommendations. The case was settled for $20,000.
In October 2005, a Summit Brokerage Services, Inc. customer alleged inappropriate conduct and coercion concerning payments for margin calls. The case settled for $15,000.
Pending FINRA case #18-04040 alleges that while Stanton was employed by Legend Securities he failed to supervise a broker and alleges common law fraud, breach of fiduciary duty, negligence and breach of contract. The damages sought are $15,000,000 .
Stanton discloses the filing of a Chapter 13 bankruptcy petition in June 2018, which is currently pending.
Stanton discloses outstanding 7 currently outstanding lines/judgments, 5 of which are Federal & State Tax Liens.
Michael Stanton has been registered with Worden Capital Management since December of 2016. . His prior employment in the financial industry includes Legend Securities, Inc., Obsidian Financial Group and National Securities Corporation.
If you have losses in an account handled by Michael Salvatore Stanton , contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.
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.
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