Firm Investigation: Windsor Street Capital

Investigation--Windsor-Street-Capital-
On May 7th, 2018, the Financial Industry Regulatory Authority (FINRA) filed a complaint against Windsor Street Capital (CRD No. 34171), a brokerage firm that is based in New York City and is licensed to operate in 50 U.S. states.

In addition to the brokerage firm, four different individual brokers are listed in this complaint: Bruce Meyers (CRD No. 1045447), Imtiaz Khan (CRD No. 4084250), Arthur Tacopino (CRD No. 2455892), and Edwin Rodriguez (CRD No. 4710962).

According to FINRA, the firm and its principals let associated individuals defraud customers, reaping in ill-gotten profits. In this article, our investment fraud lawyers provide a comprehensive description of the allegations against Windsor Street Capital and the four named individuals.

Note: All information included in this article is sourced directly from the FINRA complaint against Windsor Street Capital. To read the full complaint, please refer to: Disciplinary Proceeding No. 2016048912703.

 

FINRA Complaint: Windsor Street Capital

The complaints against Windsor Street Capital pertain to two separate alleged fraud schemes that were occurring within the brokerage firm. The first involves Arthur Tacopino and Edwin Rodriguez. The second involves Bruce Meyers and Imtiaz Khan. In both cases, the firm’s customers sustained significant financial losses.

 

Fraudulent Allocation of Trades

According to the FINRA complaint, Arthur Tacopino, who was working with Windsor Street Capital’s operations departments, fraudulently allocated days trades made by the firm. The fraud scheme was relatively simple: the successful trades were routed to his personal account, while unsuccessful trades were allocated to the customers of Windsor Street Capital. Mr. Tacopino instructed Edwin Rodriguez, an order entry clerk, to help him carry out the fraud.

The results of the fraudulent allocations were substantial: FINRA alleges that Mr. Tacopino took in at least $417,000 in ill-gotten gains, while the firm and its customers were hit with more than $515,000 of fraudulently allocated losses. This conduct is a direct violation of Securities Rule 10b-5 and a violation of FINRA Rule 2020 and FINRA Rule 2010.

 

The Charging of Excessive, Undisclosed Markups

FINRA also alleges that Windsor Street Capital negligently allowed representatives Bruce Meyers and Imtiaz Khan to charge excessive, undisclosed markups to its investors. Altogether, FINRA contends that 962 different transactions were tainted by these markups. In total, the firm raked in an additional $318,000 in secret, illegitimate profits. These markups were a direct violation of securities law, and resulted in the firm’s customers sustaining significant financial damage.

 

Brokerage Firms Have a Duty to Supervise Securities Representatives

All registered brokerage firms have a legal responsibility to oversee the actions of their representatives. The failure to supervise is a serious problem. Brokerage firms can and should be held legally liable for customer losses sustained as a result of the violation of the duty to provide sufficient supervision and oversight of individuals brokers.

 

Speak to a Securities Fraud Lawyer Now

At Sonn Law Group, we are committed to helping investors protect their rights. If you were defrauded by a broker or brokerage firm, our attorneys are prepared to help you fight for fair compensation. For a free legal consultation, please contact our team today.

Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.

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