Alexander Capital LP Regulatory Review and Investor Concerns
The White Law Group reviews the regulatory history of Alexander Capital LP, (CRD #40077) The firm has faced multiple regulatory actions by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) stemming from supervisory failures, excessive trading, and misconduct by affiliated brokers. These actions raise serious concerns for investors who may have suffered losses due to churning, unsuitable recommendations, and inadequate compliance systems.
Firm Overview
Alexander Capital LP is a New York–based broker-dealer that has been the subject of repeated regulatory scrutiny. Regulators have found that the firm failed to implement and enforce supervisory systems reasonably designed to detect and prevent broker misconduct, including excessive trading and other red flags indicative of customer harm.
Key Regulatory Sanctions and Findings
Failure to Supervise
Both the SEC and FINRA concluded that Alexander Capital failed to establish and maintain adequate supervisory procedures to detect broker wrongdoing. Regulators cited ignored red flags related to excessive trading, unauthorized transactions, and improper sales practices by registered representatives.
Monetary Penalties and Investor Restitution
The SEC ordered Alexander Capital to pay more than $410,000 in combined disgorgement, prejudgment interest, and civil penalties, which was placed into a Fair Fund for distribution to harmed investors. FINRA separately imposed multiple fines, including an $80,000 fine related to supervision failures involving unregistered securities and a $45,000 fine for failing to maintain required minimum net capital levels.
Additional Violations
Regulators also cited violations involving anti-money laundering (AML) program deficiencies, excessive commissions, and failures to comply with short interest reporting obligations. These findings further underscore systemic compliance weaknesses at the firm during the relevant periods.
Broker Misconduct Allegations
SEC enforcement actions alleged that several Alexander Capital brokers engaged in churning, unauthorized trading, and unsuitable high-cost trading strategies that generated large commissions while giving customers little to no chance of profit. According to the SEC, affected customers suffered losses exceeding $683,000, while the brokers collectively earned hundreds of thousands of dollars in commissions and fees.
Broker Misconduct and Enforcement Actions after Allegations
William C. Gennity (CRD#: 4913490)
William Gennity, a New York–based broker formerly associated with Alexander Capital LP, was reportedly charged by the SEC for excessive trading and churning customer accounts. He was ordered to pay $302,483, including disgorgement, interest, and a civil penalty, following allegations that his recommendations prioritized commissions over client interests.
Rocco Roveccio (CRD no. 2713144) and Laurence M. Torres (CRD no. 2821373)
The SEC also reportedly filed charges against Rocco Roveccio and Laurence M. Torres in connection with similar misconduct involving frequent trading and unsuitable recommendations. Regulators alleged that these strategies had no reasonable basis to benefit customers once transaction costs were considered.
Michael Castillero (CRD No. 4583917)
FINRA reportedly barred Michael Castillero from associating with any FINRA member after he refused to appear for on-the-record testimony pursuant to FINRA Rule 8210. FINRA’s investigation involved allegations of unauthorized trading, improper attempts to settle a customer complaint without firm approval, and making false statements to regulators.
Why Supervision Failures Matter to Investors
Broker-dealers are required to maintain supervisory systems reasonably designed to protect investors and ensure compliance with securities laws. When firms fail to supervise excessive trading, unauthorized transactions, or commission-driven strategies, investors—particularly retirees and conservative clients—are often left bearing substantial and unnecessary losses.
Investor Recovery Options- Alexander Capital LP
Investors who suffered losses while working with Alexander Capital LP or its brokers may have recovery options through FINRA arbitration. Claims often focus on failure to supervise, unsuitable recommendations, churning, and violations of industry rules.
How The White Law Group Can Help
The White Law Group, with offices in Seattle and Chicago, represents investors nationwide in FINRA arbitration claims against brokerage firms. If you believe your losses may be tied to excessive trading, unsuitable investments, or supervisory failures at Alexander Capital LP, our attorneys can review your account and explain your legal options at no cost.
Call 888-637-5510 for a free, confidential consultation.
Frequently Asked Questions About Alexander Capital LP
Was Alexander Capital LP sanctioned by regulators?
Yes. Alexander Capital LP has been sanctioned by both the Securities and Exchange Commission (SEC) and FINRA for supervisory failures, compliance violations, and misconduct involving excessive trading, unregistered securities, AML deficiencies, and net capital violations.
Can investors recover losses linked to Alexander Capital LP brokers?
Possibly. Investors who suffered losses due to churning, unsuitable recommendations, unauthorized trading, or failure to supervise may be able to pursue compensation through FINRA arbitration, even if the broker involved is no longer registered.
What is churning and why is it harmful to investors?
Churning occurs when a broker excessively trades a customer’s account primarily to generate commissions rather than to benefit the investor. Regulators alleged that certain Alexander Capital brokers engaged in churning that caused significant customer losses while earning substantial commissions and fees.
