Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Joseph LaScala, Jr. (CRD # 3070261) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive trading (churning) and unauthorized discretion in a customer’s account.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. LaScala, Jr.
Registration Background for Josph LaScala, Jr.
Mr. LaScala, Jr. first became registered in the securities industry in 1998. He is currently registered with Melville, NY based Aegis Capital Corp. (CRD # 15007). His prior registrations include Paulson Investment Company, Inc. (CRD # 5670) from January 2010 to February 2012, and Gunallen Financial, Inc. (CRD # 17609) from May 2006 to January 2010.
FINRA’s Allegations Against Josph LaScala, Jr.
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 24, 2022, Mr. LaScala, Jr. consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between July 2014 and April 2016, [Mr.] LaScala violated FINRA Rules 2111 and 2010 when he engaged in excessive and quantitatively unsuitable trading in his customer’s Aegis account”;
- “[Mr.] LaScala’s short-term trading in Customer A’s account was excessive and unsuitable given the customer’s investment profile, and resulted in $90,720 in trading costs and $116,194 in losses”;
- “Between January 2015 and April 2016, [Mr.] LaScala also violated NASD Rule 2510(b) and FINRA Rule 2010 when he exercised discretionary authority to effect 139 trades in the same customer’s firm account without having obtained prior written authorization from the customer or approval from Aegis to treat the account as discretionary”;
- “[Mr.] LaScala exercised discretionary authority in the account when he placed 139 trades over this 16-month period with a total principal value of approximately $2 million”; and
- By virtue of his actions, Mr. LaScala, Jr. FINRA Rule 2111 regarding suitability; FINRA Rule 2010, regarding standards of commercial honor and principles of trade; and NASD Rule 2510(b) regarding discretionary accounts.
FINRA Suspends Joseph LaScala, Jr. from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s January 24, 2022 AWC also indicates that Mr. LaScala, Jr. consented to the following sanction(s):
- A four-month suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $7,500.00.
Joseph LaScala, Jr. Has A History of Securities Industry Customer Complaints
In addition to Joseph LaScala, Jr. being suspended by FINRA from the securities industry regarding excessive trading (churning) and unauthorized discretion, FINRA BrokerCheck for Mr. LaScala, Jr. reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On May 28, 2012 a customer-initiated arbitration was filed naming Mr. LaScala, Jr. as a respondent regarding alleged actions that occurred while he was associated with Gunallen Financial, Inc. The customer’s allegations included fraudulent misrepresentation, fraud, negligence, breach of fiduciary duty and breach of contract. The customer further alleged damages in the amount of $70,000.00. On November 27, 2012 the arbitration was settled in the amount of $7,500.00.
- On January 25, 2012 a customer-initiated arbitration was filed naming Mr. LaScala, Jr. as a respondent regarding alleged actions that occurred while he was associated with Gunallen Financial, Inc. The customer’s allegations included failure to supervise, churning, improper sales activities and excessive position concentration. The customer further alleged damages in the amount of $23,000.00. On August 27, 2012 the arbitration was settled in the amount of $6,250.00 with Mr. LaScala, Jr. responsible for paying $2,062.50 of the settlement amount.
- On November 25, 2011 a customer-initiated arbitration was filed naming Mr. LaScala, Jr. as a respondent regarding alleged actions that occurred while he was associated with Gunallen Financial, Inc. and Paulson Investment Company. The customer’s allegations included failure to supervise, excessive and unsuitable trading. The customer further alleged damages in the amount of $75,000.00. On October 31, 2012 the arbitration was settled in the amount of $30,00.00 with Mr. LaScala responsible for paying $10,000.00 of the settlement amount.
If you or someone you know has or had a brokerage account with Joseph Brian LaScala, Jr. 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.
