Published on:

Carmine Capone Sanctioned and Fined by FINRA

Carmine CaponePublicly available records provided by the Financial Industry Regulatory Authority (FINRA) on July 18, 2016 indicate that Florida-based GMS Group broker Carmine Capone has been sanctioned by FINRA. The securities and investment fraud law firm Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Capone (CRD# 1124455).

Carmine Capone has spent 32 years in the securities industry and has been registered with the GMS Group in Boca Raton, Florida since 1988. Previous registrations include Moore & Schley, Cameron & Company; Moore & Schley Municipals; EF Hutton & Company; Donald Sheldon & Company; Halpert Oberst & Company; and William M. Cadden & Company. He is a registered broker with 25 US states and territories.

According to his BrokerCheck report, Carmine Capone has received one regulatory sanction, one customer complaint, and one pending customer complaint.

In November 2015, a customer alleged Carmine Capone, while employed at the GMS Group, engaged in negligent supervision between October 2011 and October 2015. The customer is seeking $750,000 in damages in the pending complaint.

In October 2015, FINRA sanctioned Carmine Capone following allegations that his member firm, acting through him, “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.” He was issued a 30-day suspension from acting in a principal capacity and a fine of $10,000.

In 2009, a customer alleged Carmine Capone, while employed at the GMS Group, executed unauthorized trades and “failed to reconfigure her portfolio to be consistent with her investment objectives & risk tolerance.” The complaint settled in 2011 for $675,000.

FINRA Rule 3110(a)(2) requires broker-dealer firms to assign “an appropriately registered principal(s)” to perform supervisory duties for every type of  business the firm conducts. Principals are required to ensure the compliance of individual representatives as well as the firm as a whole. Relevant concerns include the representatives’ character and qualifications, outside employment, and regulation of business transactions. Representatives may not engage in outside business activities or securities transactions without providing written notice to their supervising principals. Principals who fail in their supervisory duties may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.

If you or someone you know has a complaint regarding Carmine Capone, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup losses. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.