Investor Alert > Newport Coast Securities, Inc.— Alleged Excessive Trading & Churning

Posted Jun 1, 2018

by Alan Rosca

Newport Coast Securities, Inc.— Alleged Excessive Trading & Churning

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 Rosca Scarlato 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 Rosca Scarlato 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 aarosca@rscounsel.law, or through the contact form on this webpage.

DISCLAIMER

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.

If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options.

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