- September 4, 2021
- Monmouth Capital Management
Alfonse Stazzone (CRD#: 4908107) is a previously registered Broker who worked at Monmouth Capital Management, LLC in Holmdel, NJ. He entered the securities industry in 2005 and previously worked for Garden State Securities Inc.; Woodstock Financial Group, Inc.; Chelsea Financial Services; Brookstone Securities, Inc.; First Midwest Securities, Inc.; Brecek & Young Advisors, Inc.; VFinance Investments, Inc.; and J.P. Turner & Company, LLC.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2021, FINRA sanctioned Alfonse Stazzone, levying a civil and administrative penalty of $5,000 and suspending him from all capacities for a period of four months, beginning on September 7, 2021 and ending on January 6, 2022. The FINRA sanction states, “Without admitting or denying the findings, Stazzone consented to the sanctions and to the entry of findings that he engaged in excessive and unsuitable trading in a customer’s account. The findings stated that Stazzone and another registered representative with whom he worked recommended all of the trades in the customer’s account and the customer followed their recommendations. As a result, Stazzone exercised de facto control over the customer’s account. Stazzone recommended frequent trading that resulted in an annualized cost-to-equity ratio of 221.56, meaning that the customer’s account would have to grow more than 221 percent annually to break even. The customer paid over $173,000 in commissions.”
For a copy of the FINRA sanction, click here.
In addition, Alfonse Stazzone has been the subject of three customer complaints, including the following:
● August 2017–”Starting when the account transferred to WFG in May 2013 client alleges churning and excessive trading, unsuitability, violation of minn. insurance statutes, breach of contract, violations of the federal and state securities laws, negligence, fiduciary duty, fraudulent misrepresentation and negligent misrepresentation, common law fraud, and consumer fraud.” The customer dispute was settled for $60,000.
● July 2013–A tax judgment/lien in the amount of $7,347.04 was levied against Alfonse Stazzone.
● April 2013–A tax judgement/lien in the amount of $120,156.66 was levied against Alfonse Stazzone.
● April 2013–A tax judgement/lien in the amount of $12,491.39 was filed against Alfonse Stazzone.
● October 2012–A tax judgment/lien in the amount of $27,693.15 was filed against Alfonse Stazzone.
● May 2012–A tax judgment/lien in the amount of $6,601.05 was levied against Alfonse Stazzone.
● April 2008–”PERFORMANCE AND COMMISSIONS.” Damages of $150,000 were requested, and the customer dispute was closed with no action.
● January 2008–”UNAUTHORIZED TRADING IN PBY ON 12/12/07 RESULTING IN LOSS OF $5480.10.” The customer dispute was denied.
For a copy of Alfonse Stazzone’s FINRA BrokerCheck, click here.
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
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.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. 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. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.