The Rosca Scarlato LLC law firm attorneys are investigating circumstances surrounding the sanctions against Worden Capital Management and its owner Jamie Worden according to a FINRA’s Letter of Acceptance, Waiver and Consent (AWC); as well as the circumstances surrounding the sanction against Jason Collichio, as reported in another AWC. According to findings, both these sanctions are related to Worden Capital Management’s alleged failure to supervise its former brokers Gregory Dean, and Donald Fowler, who allegedly made unsuitable recommendations and excessively traded customer accounts causing customers to incur more than $1.2 million in commissions.
Investor rights attorney Alan Rosca and his colleagues are currently reviewing the allegations involving Worden Capital Management, and its brokers Jamie Worden, Jason Collichio, Gregory Dean, and Donald Fowler. Worden Capital customers who would like to discuss any concern they may have with an experienced securities attorney are encouraged to contact Alan Rosca for a free case evaluation and discussion of recovery 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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Broker Jamie Worden Suspended and Fined by FINRA
Jamie John Worden, the owner, chief executive officer, and chief compliance officer of Worden Capital Management located in New York, New York, allegedly failed to establish, maintain, and enforce a supervisory system and as a result, Worden Capital’s registered representatives allegedly made unsuitable recommendations and excessively traded customer accounts, according to the AWC.
Worden allegedly had access to monthly reports but never acted on the dozens of accounts that routinely were flagged, according to the AWC.
In addition, broker Jamie Worden allegedly interfered with customer requests to transfer accounts from Worden Capital to another member firm in connection to 13 registered representative’s’ change in employment, the AWC notes.
As a result, FINRA suspended Worden from registration in any supervisory capacity for three months and he was issued a civil and administrative fine to the tune of $15,000. In addition, Worden Capital Management was censured, fined $350,000, and ordered to pay $1.2 million in restitution, the AWC notes.
Jamie John Worden and Worden Capital Management 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.
Jamie Worden Has Been The Subject of Customer Dispute Disclosures
As of the date of this article Worden’s FINRA Brokercheck report shows one customer dispute disclosure filed March 2020 alleging failure to supervise. The customer is seeking $1,025,551 for the alleged damages.
Worden was also the subject of several customer dispute disclosures shown as settled alleging failure to supervise and lack of reasonable supervision, according to his Brokercheck report. A customer received a settlement to the tune of $19,999 in August 2019, a second customer received a settlement of $4,800 in January 2019, and a third customer received a settlement of $10,000 in March 2020.
Broker Jason Collichio Suspended and Fined by FINRA
Broker Jason Collichio, branch manager at Worden Capital from January 2015 to August 2017, allegedly failed to reasonably supervise two former registered representatives who allegedly engaged in a pattern of recommending unsuitable active trading strategies to customers and churned customer accounts, according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC).
Collichio was allegedly responsible for reviewing trading activity for excessive commissions and suitability issues on daily basis, verifying new customer account information, contacting customers, and conducting a monthly review of books and sales practice his Brokercheck report shows.
Collichio was reportedly aware of multiple red flags of excessive trading, unsuitable margin, and churning in customer accounts but he allegedly did not investigate the red flags or take action to stop the misconduct, the AWC states.
As a result of broker Jason Paul Collichio’s alleged misconduct, he has been sanctioned by FINRA, including a three month suspension from associating with any member firm in any principal capacity and a $5,000 fine. Jason Collicho 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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Gregory Dean Barred by FINRA and the SEC
Former Worden Capital broker Gregory Dean has been barred by FINRA for allegedly engaging in churning and unsuitable trading in customer accounts according to a 2019 AWC. Dean allegedly made all trading decisions in customer’s accounts, exercising de facto control. As a result, there were more than $1,834,832 in cumulative losses and reportedly Dean generated over $715,930 in commissions.
The AWC states that the level of trading activity in the customer’s accounts, controlled by Dean were nearly impossible to generate trading profits for customers, but increased commissions for Dean,. As a result, FINRA barred Dean from associating with any member firm in all capacities.
Gregory Thomas Dean 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.
The Securities and Exchange Commission (SEC) also barred Dean for allegedly recommending to 13 customers a pattern of high cost, in-and-out trading without any reasonable basis to believe the recommendations were suitable, according to the SEC’s order.
Dean’s recommendations allegedly resulted in losses for customers but gains for Dean, the SEC states. In addition, Dean allegedly churned a customer account and made unauthorized trades. As a result, the SEC barred Dean indefinitely from participating in any offering of a penny stock.
It is also important to note that Gregory Dean was sanctioned by the Arkansas Securities Division in 2013 for allegedly violating FINRA telemarketing rules, according to a Consent Order. As a result, he was ordered to cease and desist, and pay a $10,000 fine.
There is currently one customer dispute disclosure on Dean’s brokercheck report filed in September 2016 alleging suitability, unauthorized trading, supervision, and concentration. The customer is seeking $420K for the alleged damages. According to the broker’s statement, a settlement in principle was reached in this case, however the claimant’s representative reportedly never signed the agreement and has not been in touch with the broker.
As reported on Dean’s Brokercheck report, Dean is the subject of 12 customer dispute disclosures shown as settled alleging among others, excessive commission, churning, unsuitability, breach of fiduciary duty & contract, negligence, failure to supervise, and misrepresentation. Reportedly there were over $900,000 in settlements paid to customers between 2013 and 2019.
Broker Donald Fowler Under Investigation by FINRA and the SEC
Previously registered broker Donald Fowler is under investigation by FINRA on allegations of excessively trading in customers’ accounts and recommending an unsuitable active trading strategy to customers, in violation of FINRA rule, according to Fowler’s FINRA brokercheck report.
Fowler is also under investigation by the Securities and Exchange Commission on allegations of Fowler recommending a pattern of high cost, in-and-out trading without any reasonable basis to believe that his recommendations were suitable to his customers, as reported on his brokercheck report.
There are currently two customer dispute disclosures involving broker Donald Fowler according to his brokercheck report, alleging churning, breach of fiduciary duty, breach of contract, misrepresentation, negligence, and unsuitability, among others.
One customer who filed a dispute in October 2019 is seeking $27,410 for the alleged damages and another customer who filed a dispute in November 2020 is seeking $100,000 for the alleged damages.
From 2011 and 2016 Fowler was subject to 11 customer dispute disclosures reported as settled, with settlement amounts ranging from $7,500 and $400,000, as reported on his brokercheck report.
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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Potential Options for Worden Capital Management Investors
The Rosca Scarlato LLC law firm represents investors who were recommended inappropriate investments or have been victims of financial misconduct, and is currently investigating conduct related to Worden Capital Management and brokers Jamie Worden, Jason Collichio, Gregory Dean, and Donald Fowler for their alleged unsuitable recommendations and excessive trading in customer accounts or alleged facilitating of said alleged misconduct.
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 in cases ranging from arbitrations to class actions.
Worden Capital investors concerned about their investments are encouraged to contact Alan Rosca or his colleagues for a free no-obligation evaluation of their options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.