New Jersey Securities Bureau Fines Roy Failla Over Alleged Excessive Trading

Soreide Law Group comes to you with an update regarding the securities broker Roy Joseph Failla (CRD#: 2786551, Staten Island, New York). New Jersey Bureau of Securities issued Failla a suspension as a stockbroker and fined him $15,000. Also, three investors filed disputes about the broker. Let’s take a closer look at these disclosures.

New Jersey Bureau Of Securities Issues Fine, Suspension To Roy Failla

It appears that in January 2021, Roy Failla agreed to pay a $15,000 fine and serve a 45-day suspension to resolve allegations that he made unethical or dishonest actions in the securities business. More specifically, the Bureau alleged that from 2014 to 2019, Failla made unsuitable and excessive trades at First Standard Financial Company.

Supposedly, Roy Failla made short-term trades and caused clients to pay excess commissions. This reduced investors’ gains from profitable trades and made unprofitable trades worse. Notably, the fees and costs outweighed the benefits, the NJ regulator alleged. Because of this, clients experienced realized and unrealized losses.

The regulator contends that Roy Failla invested a client’s account 40 percent in CCC-rated bonds. He bought and sold corporate bonds at a loss but made substantial commissions. In another case, Failla purportedly caused a client to pay $62,709 in fees and commissions. This caused the client to have a cost-to-equity ratio of 18 percent because of his trades. Supposedly, the client’s account incurred $178,866 in losses by October 2019.

New Jersey Bureau of Securities also stated that Failla did not have a reasonable basis for believing that his investment strategy was reasonable. the broker served the suspension and paid the fine.

First Standard Financial Company Client Alleges Unauthorized Trading

Evidently, Roy Failla worked for Alexander Capital and First Standard Financial Company. It appears that in May 2018, a client brought a FINRA Arbitration Claim about the securities broker. Namely, the client alleged that Failla engaged in the unauthorized trading of stocks. Supposedly, Failla made unsuitable trades as well. For this reason, the client obtained $200,000 in an October 2019 settlement.

Prior Disputes About Roy Failla Allege Churning, Breach Of Fiduciary Duty

BrokerCheck shows that a JP Turner Company client disputed Roy Failla’s sales practices. The client alleged misrepresentation, churning, and unsuitable trading. For this reason, JP Turner Company agreed to pay the client $40,000 to resolve these allegations of sales practice violations.

A second JP Turner Company client alleged breach of fiduciary duty and unauthorized trading by Roy Failla. The complaint alleges that the client also incurred losses on alleged unsuitable and excessive trading. It appears that JP Turner Company opted to settle this matter by making a $75,000 payment to the client.

Losses Through Failla?

Did you suffer losses because of securities broker Roy Failla? If so, call Soreide Law Group at (888) 760-6552 and speak with a helpful securities lawyer about a potential recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered substantial compensation for hundreds of United States investors who have incurred losses from their financial advisors and securities brokers. Failla denies all allegations of his sales practice violations.Lars Soreide AVVO 2020 Top Lawyer