Broker Erik Patrick Pica, a previously registered broker with John Stone Capital, LLC was recently barred by the Financial Industry Regulatory Authority (FINRA) following an investigation started last year into whether Pica converted and misused $200,000 from an elderly customer, and whether he failed to comply with compliance with FINRA’s investigations, which are violations of FINRA Rules 2150 and 2010, according to an investigation by investor rights attorney, Alan Rosca.

Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating conduct related to the alleged disciplinary proceeding of Erik Pica for misappropriation of client funds among others by FINRA. As at the time of investigation, Erik Pica’s employment as an investment adviser with John Stone Capital, LLC had been terminated.

Eric Pica Barred by FINRA

Allegedly, Erik Pica converted and misused the sum of $200,000 issued to be deposited into a client’s brokerage account in February 2019. According to his FINRA Brokercheck page, it was reported that the client, who is an elderly customer, allegedly gave Erik Pica the sum of $200,000 to be deposited in the customer’s brokerage account but Erik Pica allegedly asked the client to direct the check to “Light Capital Group†which is a company wholly owned by Erik Pica. Instead of following the instructions of the client, Erik Pica allegedly diverted the funds into his personal account, which he then used to fund the down payment on a home he purchased in his and wife’s name.

According to the Complaint filed by the Department of Enforcement of FINRA, Erik Pica allegedly made false representations to his supervisor at Joseph Stone and even the client. He was also alleged to have lied to his supervisor, claiming he had not received any money from the client. He also allegedly lied to the client, claiming he had deposited the funds into the brokerage accounts and subsequently claiming he had not cashed the check.

During his investigation by FINRA, Erik Pica allegedly did not comply with FINRA staff as he provided false and misleading during the examination of his Joseph Stone’s branch office and even during his on-the-record testimony, the complaint states. Erik Pica also allegedly refused to produce documents and information requested by the FINRA staff to aid the investigation.

Erik Pica Subject of Various Customer Disputes

A pending customer dispute was opened against Erik Pica in 2018 on the allegations of unauthorized trading of 6000 shares of Rite Aid Corp and the unauthorized trading of 550 shares of Valeant Pharmaceuticals. The damages sought from this dispute amounts to $7,613.65. In the same year, Erik Pica settled a customer dispute brought on the allegations of negligent supervision, over concentration and suitability. The client sought damages to the amount of $293,000 but the dispute was settled for $30,000. Another pending customer dispute was opened against Erik Pica in 2018 on the allegation of recommending unsuitable securities, churning and negligent supervision. The damage sought from that dispute is $500,000

Erik Pica also has a pending customer dispute from 2017. He was alleged to have failed to treat the client in a just and equitable manner, breached contract and fiduciary duty and also, negligent misrepresentation. The client seeks $120,000 as damages from these claims. In 2011, he settled a customer dispute to the tune of $4,999. The client claimed Pica allegedly owned the ETF Pica recommended to clients and that he did not fully understand the product. Another customer dispute was denied in 2011. The client sought $17,200 in damages on the allegation that he was assured that the stock price would rise and if it did not, the loss and commission would be refunded. A customer dispute on the allegations on suitability of trades was also denied in 2010.

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.

Securities Lawyer 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 Erik Pica’s alleged misappropriation of client’s funds. The firm takes most cases of this type on a contingency fee basis and advance 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, and 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 Erik Pica’s misappropriation of client’s funds 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.