Israels & Neuman, PLC Investigates DOUGLAS A. LEONE of SALOMON WHITNEY FINANCIAL and NEWPORT COAST SECURITIES, INC. of New York, New York
Have you lost money with financial advisor DOUGLAS A. LEONE (CRD# 2453784) of SALOMON WHITNEY FINANCIAL (CRD# 145012 / SEC# 8-67688) or NEWPORT COAST SECURITIES, INC. (CRD# 16944) of New York, New York? We are investigating allegations made by various state and independent regulatory agencies related to the conduct of Doug Leone. According to Douglas Leone’s CRD report, a public record maintained by FINRA, the Financial Industry Regulatory Authority states that:
Leone was named a respondent in a FINRA complaint alleging that he, with his member firm and other firm representatives, excessively traded and churned customers’ accounts.
The complaint alleges that the misconduct should have quickly drawn scrutiny, and been stopped, because cost-to-equity ratios were often over 100 percent; turnover rates were often over 100; there were extraordinary amounts of in-and-out trading; customer accounts were highly margined and often concentrated in one security; there were large numbers of transactions in which the total commission/markup per trade exceeded three percent and, in many instances, exceeded four percent; there was a deceptive mix of riskless principal and agency trading in numerous accounts, namely, higher cost trades in which markups almost always exceeded three percent (and generally exceeded $1,000 per trade) were executed on a riskless principal basis whereas lower cost trades, typically involving sales of the same securities, were executed on an agency basis; inverse and/or leveraged exchange traded funds (etfs) and exchange traded notes (etns) remained in accounts for multiple trading sessions; solicited trades were inaccurately characterized as unsolicited; and nearly all of the customer accounts at issue exhibited large losses. The trading was excessive in light of, and inconsistent with, the customers’ investment objectives and financial situation.
It is further alleged that Leone, the firm and the other representatives engaged in a manipulative, deceptive and fraudulent scheme by churning the accounts of customers. They acted with intent to defraud and/or with reckless disregard of their customers’ interests by seeking to maximize their own remuneration in disregard of the interests of their customers and as a result, willfully violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, FINRA rules 2010 and 2020, and NASD rules 2110 and 2120. The complaint also alleges that Leone received emails from a customer inquiring about his account balance. On each occasion, Leone responded by email that falsely overstated the true value of the customer’s account.
Doug Leone is no stranger to customer complaints, litigation, and arbitration. He has been repeatedly sued by his customers and many complaints have been filed against him. Leone’s CRD report discloses that he and his previous firms have paid out approximately $200,000.00 in lawsuit and arbitration settlements since 1999 to his customers, for claims alleging: churning, misrepresentation, breach of fiduciary duty, negligence, suitability, unauthorized trading, and fraud and deceit.
Douglas Leone is currently a financial advisor and registered representative of Solomon Whitney Financial in New York, New York. He was also an advisor with Newport Coast Securities, Inc. from August 2005 to October 2008. He worked at branch offices in New York, New York. Prior to Newport Coast Securities, Inc., Leone worked at: Basic Investors, Inc., Joseph Stevens & Company, Inc., Advanced Planning Securities, Inc., Whitehall Wellington Investments, Inc., Cambridge Capital, LLC, Foster Jefferies Securities, LLC, La Jolla Capital Corporation, Renaissance Financial Securities Corp., Gaines, Berland, Inc., and Guntal & Co. Incorporated.
Brokerage firms have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in New York. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including AXA Advisors, LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.
If you lost money with Douglas Leone or Newport Coast Securities, Inc., please Contact Us at 720-599-3505 for a free evaluation of your case.
Click to view: Leone Complaint