The Financial Industry Regulatory Authority (FINRA) has fined and suspended CHARLES V MALICO (CHARLIE MALICO, CRD#: 1507282) formerly with Network 1 Financial Securities in Huntington Station, New York, in what may be the first FINRA enforcement action stemming from the Securities and Exchange Commission’s Regulation Best Interest, or Reg BI.
According to FINRA’s BrokerCheck, a report dated October 10, 2022, stated that without admitting or denying FINRA’s findings, CHARLES V MALICO consented to the sanctions and to the entry of findings that he allegedly violated the Best Interest Obligation under Rule 15l-1 of the Securities Exchange Act of 1934 (Regulation Best Interest or Reg BI) by recommending a series of transactions in a retail client's account that was excessive in light of the client's investment profile.
FINRA’s findings alleged that the trades that CHARLES V MALICO recommended in the client's account resulted in an annualized cost-to-equity ratio exceeding 158%. This means that the client's account would have had to grow by more than 158 percent annually just to break even. According to FINRA, Charlie Malico's recommendations allegedly caused the client to pay more than $54,000 in commissions and other trading costs, and made it virtually impossible for the client to realize a profit. FINRA states that the client lost more than $17,500 as a result of Malico's alleged recommendations.
According to a recent article in FinancialAdvisor IQ, Reg BI went into effect on June 20, 2020, requiring broker/dealers or any associated persons to act in the best interest of their clients when making recommendations. The alleged violations by Malico, according to FINRA, took place July 2020 through November 2021.
CHARLES V MALICO agreed to a six-month suspension and a fine of $5,000 according to the letter of acceptance.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, CHARLES V MALICO, has been in the securities industry for 34 years and was listed with 21 firms. He has 11 disclosures on his FINRA CRD report, 7 of the disclosures are “Customer Disputes.”
If you’ve experienced investment losses due to the actions or recommendations of the former Network 1 Financial Securities in Huntington Station, New York, broker, CHARLES V MALICO, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationally before FINRA on a contingency fee basis, no fee to you if no recovery,
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