David Joseph Escarcega Named Respondent in FINRA Complaint

FINRA has recently named David Joseph Escarcega (Arizona) a respondent in a complaint alleging that he made false and misleading statements to customers related to purchases of renewable secured debentures1. The complaint alleges Escarcega falsely told the customers that the debentures were safe, low-risk, liquid or guaranteed and made unsuitable recommendations to 12 customers to purchase a total of almost $1.5 million of the debentures. Escarcega’s recommendations regarding the purchases were inconsistent with his elderly and retired customers’ investment objectives and risk tolerances. These recommendations resulted in excessive concentrations of the customers’ total investable assets and/or net worth in a speculative and risky investment. See page 35 of the FINRA report here. ________ 1Debenture: an unsecured (without collateral) bond backed only by the integrity of the issuer (borrower). The parameters of the bond are set forth in an agreement called an...

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FINRA Names Seven Financial Advisors Registered with Newport Coast Securities, Inc. (including Donald Andrew Bartelt) as Respondents in Complaint

Donald Andrew Bartelt (Cave Creek, Arizona) and six other respondents from across the country registered with Newport Coast Securities, Inc. were named respondents in a FINRA complaint alleging that the firm, Bartelt, Constanzo, LaBarbera, Leone and Levy excessively traded and churned customers’ accounts. The complaint alleges that the misconduct should have quickly drawn scrutiny, and been stopped, because of obvious unusual account activity. The complaint alleges that the firm, Bartelt, Constanzo, LaBarbera, Leone and Levy engaged in a manipulative, deceptive and fraudulent scheme by churning the accounts of customers and acted with intent to defraud and/or with reckless disregard of their customers’ interests. To read the entire report, see page 31...

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