Legend Securities, Inc., is a New York City-based brokerage firm located at 45 Broadway, 2nd Floor in New York, 10006. The firm has several satellite branches in New Jersey and on Long Island. It was formed in New York in 1998 and was registered with the Securities Exchange Commission (SEC) and the Financial Industries Regulatory Authority (FINRA) in 1998.
Legend Securities’ FINRA BrokerCheck report lists 6 final regulatory events and 1 arbitration. The report reflects a history of transmitting reports with inaccurate information and a failure to submit reports within a designated period of time. In 2014, Legend Securities consented to FINRA findings in a Acceptance, Waiver and Consent Letter (AWC) that alleged the firm incorrectly reported agency transactions as principal or riskless transactions and accepted customer orders in pre-market or post-market hours that involve material trading risks without disclosing any characteristics of the trade or any risks involved. These violations allegedly took place between January 9, 2012 and January 20, 2012.
Legend Securities also consented to FINRA findings that the firm’s supervisory system did not provide for supervision designed to achieve compliance with to securities laws and the Rules of FINRA. FINRA’s investigation also found that the firm’s written supervisory procedures (WSPs) did not adequately establish and enforce protocol for order handling, anti-intimidation/coordination, sales transactions and other trading rules.
Legend Securities did not did not admit or deny the findings of the investigation and was consequently censured and fined $52,000. FINRA brought about similar allegations two years earlier, for violating MSRB Rule G-8, concerning recordkeeping requirements. Legend Securities consented to the findings but did not admit to or deny any of the violations. The firm was censured and fined $12,500.
In May of 2011, the Securities Exchange Commission (SEC) instituted cease and desist proceedings against Legend Securities for failure to comply to documentation requests in connection with an examination conducted as part of the Broker-Dealer Inspection Program (BDIP) in March 2009. According to the SEC, the firm failed to provide personnel documentation for an associate with the firm, and did not comply with repeated requests for the information after the inspection. In internal emails obtained by the SEC, Legend Securities President Salvatore Caruso acknowledged he did not have the documents in question and requested that the associate sign a back-dated version of the requested documents. The SEC found that the firm violated Section 17(A) of the Exchange Act, which specifies what records firms are required to keep. The firm consented to the findings, and was fined $50,000.
According to FINRA BrokerCheck, brokers associated with Legend Securities have regulatory disclosures and customer disputes of their own, including:
•John Cangialosi, a Legend Securities registered representative who worked at a broker-dealer that was expelled by FINRA. He has 3 customer disputes and a final regulatory event listed on his BrokerCheck report.
•Richard Coleman, a Legend Securities registered representative who previously worked at 16 broker-dealers in a 20-year period, 7 of which were were expelled by FINRA. He has 7 customer disputes and 3 regulatory events listed on his BrokerCheck report.
•Mario Gogliormella, a Legend Securities registered representative who has 3 customer disputes listed on his BrokerCheck report, 2 of which are pending.
•Jason Klabal, a Legend Securities registered representative who has 7 customer disputes listed on his BrokerCheck report, 4 of which are pending.
• Salvatore Pizzimenti, a Legend Securities registered representative who previously worked at a broker-dealer that was expelled by FINRA. He has 4 customer disputes listed on his BrokerCheck report.
If you or someone you know has incurred losses as a result of broker misconduct at Legend Securities, please call (212) 566-6060 to see if you have a case to recover your losses.