Antonio Costanzo Permanently Barred by FINRA After Alleged Churning in Customer Accounts

Broker failed to respond to FINRA information requests after allegations of excessive trading in numerous customer accounts

After 19 years in the securities industry, Antonio Costanzo has received a permanent bar from FINRA from acting in the capacity of a broker or other financial adviser, according to the FINRA website. The sanction, levied in May, came after a 2014 allegation that Costanzo was involved in churning, or excessive trading, in several customers’ accounts while employed at Newport Coast Securities.

Churning is, unfortunately, a common form of stockbroker misconduct in which a financial adviser makes excessive trades in an account in an effort to generate greater commissions without actually benefiting the customer. In fact, the buying and selling activity involved in churning is unsuitable to the investor’s goals and serves no practical purpose to the investor but generates substantial commission for the stockbroker.

This was not Costanzo’s first alleged involvement with churning or FINRA disciplinary action. In 2004, a customer alleged churning and misrepresentation, resulting in a settlement of $2,500. In 2006, he was implicated in a customer dispute that was settled for $14,900 out of an alleged $43,000 in damages, on allegations of excessive trading, misrepresentation and fraud, among other charges. In 2008, Costanzo was discharged from his employment with Wedbush Morgan Securities after allegations that he violated industry rules and potentially committed fraud.

At the time of his alleged churning, Costanzo was employed by Newport Coast Securities, Inc., and the complaint implicates the firm and four other brokers in the misconduct. Costanza, Douglas Leone, Andre LeBarbera, David Levy and Donald Bartelt allegedly churned 24 customers’ accounts, raising a number of red flags that should have been caught by the firm, according to the complaint.

In addition, according to the complaint, not only did supervisors and compliance officers at Newport Coast Securities allegedly see what was going on and ignore it, but also allegedly profited off of making overrides to allow the behavior to continue.

As an investor, you have rights. If you’ve been wronged by Costanza or Newport Coast Securities, or if you feel your broker has acted inappropriately, you may be able to pursue your losses through securities arbitration. Contact Silver Law Group today to have your case reviewed by an experienced securities arbitration attorney