Former Westpark Capital broker Stephen Sloane has been barred for allegedly recommending an unsuitable investment strategy to 14 customers and charging unfair prices to five customers according to FINRA’s Decision, under review by investor rights attorney Alan Rosca.
Investor rights attorneys at the Rosca Scarlato LLC law firm often represent victims of broker misconduct and are investigating conduct in relation to the alleged recommendations of trading U.S. Treasuries by former broker Stephen Sloane.
Investors who are concerned about their investments with Stephen Sloane may contact attorney Alan Rosca for a free consultation and discussion of recovery options, or to provide any useful information. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
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Sloane Under FINRA Investigation Since 2016
FINRA reportedly began an investigation in 2016 regarding Sloane’s control of certain retail customer accounts that traded long-term U.S. Treasuries with 10-year and 30-year maturities in the secondary market, according to FINRA’s default decision.
Sloane allegedly waited for an event to occur that would cause the treasury prices to rise then he allegedly recommended to sell the securities and use the sales proceeds to repeat the process by buying other 10-year or 30-year treasuries, according to FINRA’s default decision.
During the investigation, FINRA reportedly discovered Sloane allegedly recommended to 14 of his customers an active, short-term trading strategy in Treasuries without having a reasonable basis to do so. In addition, FINRA staff identified transactions where Sloane allegedly charged certain customers unreasonable prices for Treasuries by charging excessive markups and markdowns, the decision notes.
During January 2014 and February 2018, Stephen Sloane allegedly charged the 14 customers $510,025 in markups and markdowns as a result of his trading strategy in Treasuries. In addition, Sloane reportedly received $220,000 in compensation from implementing the investment strategy to the 14 customers, the decision notes.
As a result of Sloane’s alleged broker misconduct, he has been barred indefinitely from associating with any FINRA member firm in any capacity and he must pay a restitution of $175,823.03, according to FINRA’s default decision.
Stephen Sloane signed the AWC accepting and consenting to FINRA’s findings, without admitting or denying the findings, and solely for the purposes of the proceeding brought by or on behalf of FINRA , prior to a hearing and without an adjudication of any issue of law or fact.
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Stephen Sloane Subject to Multiple Customer Dispute Disclosures Between 2000 and 2010
According to Sloane’s FINRA Brokercheck page, he was subject to four customer disputes reported as settled between 2000 and 2010.
A Sloane customer filed a dispute in July 2009 alleging unsuitable investments. The customer was seeking $250,000 for the alleged damages and they received a settlement in September 2010 to the tune of $78,500.
In July 2002, a Sloane customer filed a dispute alleging unsuitable investment recommendations, breach of contract, negligence, fraud, misrepresentation, and violation of securities act. The customer was seeking $262,531 for the alleged damages and they received a settlement in March 2004 to the tune of $55,000.
Another customer filed a dispute in April 2002 alleging the stock investments purchased were unsuitable. The customer was seeking $50,000 for the alleged damages and they received a settlement of $25,000 in November 2003.
In February 2000, a customer filed a dispute involving former broker Stephen Sloane alleging unsuitable investments. The customer was seeking $6,000 for the alleged damages but they received a settlement of $2,000 in January 2002.
Investors who are concerned about their investments with Stephen Sloane are encouraged to contact attorney Alan Rosca for a free case evaluation and discussion of recovery options, or to provide any useful information. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
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Stephen Sloane Was Registered with FINRA Since 1984
Former broker Stephen Sloane was registered with FINRA for 29 years and switched employers five times according to his FINRA Brokercheck page. Sloane was first employed with Donald Sheldon & Co from May 1984 until January 1985. He then switched to Dean Witter Reynolds located in Purchase, New York from May 1992 until June 1999.
Sloane switched to Citigroup Global Markets located in New York, New York in June 1999 and remained there until June 2009. He then joined Morgan Stanley located in New York, New York from June 2009 until March 2016.
Morgan Stanley discharged Sloane in February 2016 for allegations concerning cost-related issues associated with registered representative’s trading of U.S. treasuries, according to Sloane’s FINRA Brokercheck page.
Sloane joined Westpark Capital located in New York, New York in March 2016 and remained there until August 2020.
Potential Options for Stephen Sloane Investors
Investor rights attorneys at Rosca Scarlato LLC law firm have extensive experience in fighting for recovering losses on behalf of broker misconduct victims. Investor rights attorney Alan Rosca is currently investigating the allegations involving former broker Stephen Sloane’s alleged unsuitable recommendations.
Investors of Stephen Sloane are encouraged to contact Rosca Scarlato for a free evaluation of their case, to learn about their rights, or to provide useful information. All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, and only get paid for their fees and expenses when they recover money for their clients. If there is no recovery, no fees or expenses are charged.
Investors who are concerned about their investment with Stephen Sloane may contact attorney Alan Rosca or his colleagues at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
