Financial Advisor, John Simoncic, Barred By FINRA For Alleged Excessive Trading
The Wolper Law Firm is currently investigating claims against John Simoncic, a former Financial Advisor at Financial West Group in Reno, Nevada. Eric Kunis has been in the securities industry since the 1980s and previously worked at Securities America.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on October 24, 2018, FINRA sanctioned John Simoncic, barring him from associating with any brokerage firm. The basis for the suspension is John Simoncic’s alleged excessive trading in customer accounts:
“Without admitting or denying the findings, Simoncic consented to the sanction and to the entry of findings that he churned customer accounts, engaged in excessive trading, and made unsuitable recommendations involving transactions in non-traditional exchange traded funds (ETFs) in five accounts held by two customers, one of whom was a senior investor. The findings stated that Simoncic exercised de facto control over and made all trading decisions for investments in the senior investor’s IRA and the second customer’s four accounts, including which specific securities to buy and sell, the quantity of securities to buy and sell, and when to buy and sell the securities. The customers relied completely upon Simoncic to manage their accounts and to make all investment decisions on their behalf. In the senior investor’s account, Simoncic executed trades with principal values of the purchases and sales totaling approximately $1.80 million. In the second customer’s accounts, Simoncic executed trades with principal values of the purchases and sales also totaling approximately $1.83 million…Simoncic did not have reasonable grounds for believing that his recommendations of non-traditional ETFs were suitable for either customer.”
For a full copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2017054755205%20John%20S%20Simoncic%20CRD%201062932%20AWC%20sl.pdf
Financial Advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
In addition, brokers who engage in excessive and unnecessary trade activity violate the law. Brokers often attempt to conceal excessive trading by convincing that the short-term trades are profitable without also disclosing that, net of commissions, the trades are flat or result in a loss to the client. Excessive trading claims require a careful analysis of the cost-benefit ratio of the investment transactions.
If you or someone you know was a customer John Simoncic and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.