Broker Albert Foronda, currently registered with Spartan Capital Securities, LLC based in New York, has allegedly engaged in unauthorized transactions in customers’ accounts, among other related allegations, according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC) under review by attorney Alan Rosca.
Foronda was reportedly sanctioned by the Financial Industry Regulatory Authority (FINRA) on January 17, 2020 and has been the subject of one regulatory action and three customer disputes.
Investor rights attorneys Alan Rosca and his colleagues, of Rosca Scarlato LLC law firm, are investigating conduct related to the regulatory action and customer disputes initiated against broker Albert Foronda on allegations including unauthorized trades.
Investors who are concerned about their investments with Albert Foronda are encouraged to reach out to attorney Alan Rosca or his colleagues for a free, no-obligation consultation and discussion of potential options, or to provide any useful information. Call 888-998-0530, send an email to arosca@rscounsel.law, or complete the contact form on this webpage.
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Foronda Was Sanctioned By FINRA
According to an AWC signed by broker Albert Foronda, he allegedly effected unauthorized trades in the accounts of two customers.
Between July 11, 2017 and July 27, 2017, Foronda allegedly effected four unauthorized trades in a customer’s account while associated with Worden Capital Management, the AWC states. It is alleged that, without having customer’s authorization, Foronda sold one of the securities owned by the customer, and on the same day bought shares of another security using the proceeds from the sale. Foronda then sold that security at a loss, without the customer’s authorization, FINRA states.
Spartan Capital Securities broker Albert Foronda also allegedly purchased a security in the customer’s account without his authorization on July 19, 2017, which was later cancelled by Worden.
In addition, Foronda allegedly effected four unauthorized trades in another customer’s account at Worden between June 9, 2017 and August 11, 2017. As a result of the unauthorized transactions, the customer suffered losses of $2,765, according to the AWC.
Foronda was sanctioned by FINRA on January 17, 2020. As a result of Foronda’s alleged misconduct, he received a 45-calendar-day suspension from associating with any FINRA member firm in any capacity, a restitution of $2,765, plus interest, and a fine of $7,500. Without admitting or denying the allegations, Albert Foronda signed the AWC letter accepting the sanctions mentioned above.
Albert Foronda Has Been the Subject of Three Customer Dispute Disclosures
Three Albert Foronda customer filed disputes between August 2017 and May 2019, two of which ended in settlement, according to the information on his FINRA Brokercheck page.
A customer dispute filed with FINRA on April 30, 2018 on allegations of breach of fiduciary duty, breach of contract, and negligence, which reportedly occurred while Foronda was registered with Legend Securities and Worden Capital Management. The allegations involve investments in OTCs and common and preferred stock. The client requested $90,000 in alleged damages.
Albert Foronda was also the subject of another customer dispute disclosure alleging of unsuitability, excessive trading, and negligence while employed by Spartan Capital Securities. The dispute was filed by FINRA on May 8, 2019 and the allegations involved investments in common and preferred stock. The amount of damages requested was $650,000, and it was settled in September 2020 for $385,000, according to the Brokercheck report.
The third Foronda customer filed a dispute making allegations of unauthorized trades in August 2017 while employed by Worden Capital Management. The client alleged that a transaction made on his account was not authorized, according to Foronda’s Brokercheck page. The allegations involved investments in common and preferred stock, and the client sought to recover $17,228 in damages related to the alleged unauthorized trades. The dispute was settled in October 2017 for $14,000.
Foronda Has Been Registered with FINRA for 11 Years
According to his Brokercheck page, Albert Foronda has been registered with FINRA since February 2010.
Foronda was first employed in 2010 by National Securities Corporation (NSC), located in New York, New York, where he remained for one year. He began work with Legend Securities, also located in New York, New York, in 2011, where he remained until 2016. The company was later expelled from the securities industry by FINRA in April 2017.
Albert Foronda was then employed by Worden Capital Management, located in Garden City, New York, from 2016 until 2017.
Foronda is currently registered with Spartan Capital Securities located in New York, New York, where he has been employed since August 2017.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Investor Rights Attorneys Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to broker Albert Foronda’s allegations of engaging in unauthorized transactions in customers’ accounts, among others.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to broker Albert Foronda’s unauthorized transactions in customers’ accounts among other things may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.