Goodman & Nekvasil P.A, May Recover Your Investment Losses – Carmine Capone Suspended from Securities Industry
Carmine Capone has been licensed with The GMS Group, LLC since November 1988. Carmine Capone was suspended from the securities and investment banking industry in all principal capacities for 30-days and fined $10,000 by the Financial Industry Regulatory Authority (FINRA) in October 2015. Carmine Capone consented to findings that The GMS Group, LLC, acting through Carmine Capone, failed to adequately supervise the sales practices of a registered representative who recommended and engaged in unsuitable trading in nontraditional exchange traded funds in four customer accounts, and exercised discretion without having obtained prior written authorization in fourteen customer accounts. Carmine Capone was assigned by The GMS Group, LLC to supervise the representatives’ activities as a registered representative acting on behalf of the firm. The findings stated that specifically, The GMS Group, LLC failed to establish and maintain a supervisory system designed to achieve compliance with applicable NASD and/or FINRA rules in connection with the sale of nontraditional exchange traded funds. Further, The GMS Group, LLC and Carmine Capone allowed the representative to execute 173 purchases of non-traditional exchange traded funds, even though the representative did not have a reasonable basis to recommend these securities and they were unsuitable from a customer-specific perspective. The findings also stated that the firm and Carmine Capone were on notice of numerous red flags that the representative had a propensity to engage in unsuitable trading on behalf of his customers. Despite the red flags, The GMS Group, LLC, acting through Carmine Capone, failed to take adequate steps to supervise the representative’s sales activities.
FINRA also reports that two arbitration claims have been filed during Carmine Capone’s employment with The GMS Group, LLC. These claims allege negligent supervision and/or unauthorized trading. These two arbitration claims involving Carmine Capone’s conduct with The GMS Group, LLC settled for $675,000 and $350,000. Carmine Capone contributed $31,500 to one of these settlements.
If you lost any money with The GMS Group, LLC you may be able to recover your losses from The GMS Group, LLC. This is because The GMS Group, LLC had a duty to supervise Carmine Capone.
If you lost money on investments with Carmine Capone and believe that the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against The GMS Group, LLC concerning Carmine Capone’s conduct. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $300 million on behalf of victimized investors. If you lost money on investments with Carmine Capone and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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