Philip Sparacino was being investigated for allegations that he engaged in unauthorized, excessive, and unsuitable trading.
The Sonn Law Group is investigating allegations that Philip Sparacino committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Philip Sparacino (CRD#: 3243960) refused to respond to FINRA’s request for information and documents in connection with their investigation into Sparacino.
In 2019, FINRA began investigating allegations that Sparacino engaged in unauthorized, excessive, and unsuitable trading while registered through First Standard.
According to his BrokerCheck report, Sparacino was the subject of a regulatory action in October 2019 initiated by the New Jersey Bureau of Securities.
The Bureau alleged that Sparacino employed a device, scheme, or artifice to defraud; made untrue statements and omitted to state material facts necessary in order to make the statements made [ . . .] not misleading; engaged in an act, practice, or course of business which operates or would operate as fraud or deceit upon any person; and that Sparacino engaged in dishonest or unethical business practices in the securities business.
Sparacino was fined $250,000. His former member firm stated, “Sparacino had access to dozens of newly inherited customer accounts which he used as a vehicle to generate exorbitant commissions at the customers’ expense. Sparacino engaged in dishonest or unethical practices in the securities business by recommending to a customer an investment strategy, or the purchase, sale, or exchange of any security or securities without reasonable grounds to believe that such strategy, transaction, or recommendation was suitable for the customers.
Sparacino engaged in dishonest or unethical practices in the securities business by placing orders or executing transactions on behalf of customers without prior authorization to do so, and by charging commissions and fees for services without prior notification to the customers as to the nature and amount of these commissions and fees.
Additionally, they alleged Sparacino engaged in dishonest or unethical practices in the securities business by charging unreasonable and inequitable fees to the customers for services he performed, including exorbitant commissions and fees of service, by making numerous misrepresentations or omissions of material facts, and by employing various forms of concealment and deception in connection with the offer, sale and purchase of securities, and by engaging in numerous material misrepresentations, omissions, and conduct that is deceitful, deceptive, or fraudulent, which involve various aspects of the securities industry
Prior to his termination in October 2019, Sparacino had been employed by First Standard Financial Company since July 2014.
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The Sonn Law Group is currently investigating allegations of misconduct. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.