Written by The White Law Group• November 26, 2019• 7:51 pm• Blog, Current Investigations

Philip J. Sparacino Broker Investigation

Financial Advisor Philip J. Sparacino, First Standard Financial Company in Red Bank, NJ

Are you concerned about investments with Philip J. Sparacino in Red Bank, NJ? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

According to the Financial Industry Regulatory Authority (FINRA) on November 11, the regulator has reportedly barred financial advisor Philip J. Sparacino after he purportedly refused to produce information and documents requested by FINRA in connection with allegations that he engaged in unauthorized, excessive, and unsuitable trading while registered through his member firm, First Standard Financial Company.

According to his FINRA BrokerCheck report, Sparacino was reportedly affiliated with First Standard Financial Company in Red Bank, NJ from 2014 until 2019 when he was purportedly dismissed after the New Jersey Bureau of Securities allegedly revoked his license.

His broker profile further states that “Since at least June 2019, Sparacino has engaged in a pattern of unauthorized, excessive, unsuitable, and fraudulent trading activity on behalf of customers of First Standard following the departure of many of First Standard’s agents. 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 reportedly has 3 customer complaints filed against him since 2018. Allegations include unauthorized trades, unsuitable investments and churning.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Sparacino’s employers may have for failure to properly supervise him.

When brokers violate securities laws, such as misappropriating clients’ funds, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including New Jersey. Our attorneys have recovered millions of dollars from many brokerage firms in the past.