Newport Coast Securities, Inc. Allegedly Excessively Traded & Churned Customer Accounts & Allegedly Failed to Properly Supervise Leone & La Barbera, the Firm’s Registered Reps
Newport Coast Securities, Inc., Douglas A. Leone, and Andre V. La Barbera allegedly excessively traded and churned the accounts of customers, according to a Complaint from FINRA’s Department of Enforcement under review by attorney Alan Rosca.
Attorney Alan Rosca, of the Goldman, Scarlato & Penny law firm, is investigating activity related to Newport Coast Securities,’s alleged excessive trading and churning. Investors who believe they may have lost money in activity related to Newport Coast Securities’s alleged excessive trading and churning are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
A FINRA Hearing Panel also found that La Barbera and Newport allegedly recommended qualitatively unsuitable investments, and that Leone conveyed inaccurate account values to one customer, the Complaint notes. Said Hearing Panel found that Newport also allegedly failed to supervise reasonably the activities of the firm’s registered representatives, the Complaint states.
La Barbera and Newport, allegedly acting through La Barbera, Levy, and another broker Costanzo, also allegedly recommended that certain customers purchase leveraged or inverse exchange-traded products without reasonably believing that the securities were suitable for these customers based on their disclosed age, investment objectives, financial background, and risk tolerance, in violation of NASD and FINRA Rules, the Complaint notes.
Newport Securities Expelled & Fined $403K by FINRA; Leone Barred & Fined $185K by FINRA, and La Barbera Barred & Fined $125K by FINRA
Based on the alleged egregious misconduct, the FINRA Hearing Panel, according to the aforementioned Complaint under review by attorney Alan Rosca, has imposed the following sanctions:
- Newport has been barred from FINRA membership and fined $1 million
- Leone and La Barbera have been barred from associating with any FINRA member in any capacity
- Leone has received a fine of $400,000
- La Barbera has been fined $125,000
- Newport, Leone (jointly and severally with Newport), and La Barbera (jointly and severally with Newport) ordered to pay restitution to their respective customers, with the fine amounts offset by proof of restitution payments.
Securities Lawyer Investigating
The Goldman, Scarlato & Penny law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Newport Coast Securities,’s alleged excessive trading and churning. 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, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions, and has helped recover tens of millions of dollars on behalf of investors.
Investors who believe they lost money as a result of Newport Coast Securities,’s alleged excessive trading and churning may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.