Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, James Pecoraro (CRD # 2440231) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive trading (churning).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Pecoraro.
Registration Background for James Pecoraro
Mr. Pecoraro first became registered in the securities industry in 1999. He is currently registered with Garden City, NY based Spartan Capital Securities, LLC (CRD # 146251). His prior registrations include SW Financial (CRD # 145012) from September 2016 to December 2019, Primary Capital, LLC (CRD # 127921) from December 2015 to September 2016 and Rockwell Global Capital LLC (CRD # 142485) from January 2001 to November 2015.
FINRA’s Allegations Against James Pecoraro
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated August 4, 2022 (No. 2017056820701), Mr. Pecoraro consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From October 2016 through May 2019, [Mr.] Pecoraro engaged in quantitatively unsuitable trading in three customer accounts”;
- “From October 2016 to May 2019, [Mr.] Pecoraro effected 109 trades in Customer A’s account, resulting in an annualized turnover rate of 13.47 and an annualized cost-to-equity ratio of 57.58%”;
- “From January 2017 to February 2018, [Mr.] Pecoraro effected 69 trades in Customer B’s account, resulting in an annualized turnover rate of 46.64 and an annualized cost-to-equity ratio of 175.19%”;
- “From February 2017 to October 2018, [Mr.] Pecoraro effected 147 trades in Customer C’s account, resulting in an annualized turnover rate of 57.97 and an annualized cost-to-equity ratio of 174.03%”;
- “[Mr.] Pecoraro’s trading in these three customers’ accounts was excessive and unsuitable given the customers’ investment profiles”; and
- By virtue of his actions, Mr. Pecoraro violated of FINRA Rule 2111, regarding suitability and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Suspends James Pecoraro from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s August 4, 2022, AWC also indicates that Mr. Pecoraro consented to the following sanction(s):
- A nine-month suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $10,000.00.
James Pecoraro Has A History of Securities Industry Customer Complaints
In addition to James Pecoraro being suspended by FINRA from the securities industry regarding excessive trading (churning), FINRA BrokerCheck for Mr. Pecoararo reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On December 23, 2003, a customer initiated an arbitration against Mr. Pecoraro regarding alleged actions that occurred while he was associated with Harrison Securities, Inc. The customer’s allegations included breach of fiduciary duty, unsuitability failure to provide competent professional services, misrepresentation, and negligence. The customer further alleged damages in the amount of $230,000.00. On June 27, 2005, Mr. Pecoraro was found jointly and severally liable for the amount of $235,735.00 plus interest.
- On February 18, 2019, a customer initiated an arbitration against Mr. Pecoraro regarding alleged actions that occurred while he was associated with SW Financial. The customer’s allegations included negligence, unsuitable investments, fraud, breach of fiduciary duty, unauthorized transactions, and misrepresentation. The customer further alleged damages in the amount of $100,000.00. On August 26, 2019, the matter was settled in the amount of $36,000.00. Mr. Pecoraro was responsible for the amount of $18,000.00.
- On June 15, 2017, a customer initiated an arbitration against Mr. Pecoraro regarding alleged actions that occurred while he was associated with Rockwell Global Capital, LLC. The customer’s allegations included negligence, breach of fiduciary duty, reckless and/or willful misconduct and breach of contract. The customer further alleged damages in the amount of $50,000.00. On July 10, 2017, the matter was settled in the amount of $13,500.00, with Mr. Pecoraro responsible for the full amount.
If you or someone you know has or had a brokerage account with James Pecoraro and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.