FINRA Arbitration Panel Awards Investors Approximately $250,000 in Compensatory Damages

On June 18th, 2020, a FINRA Arbitration Panel awarded a pair of investors approximately $250,000 in compensation in a broker negligence claim (Case Number: 20-00620). The respondents in the case were Anthony Mastroianni Jr. (CRD#: 2151249), John F. Riccardi Jr. (CRD#: 4771185), and Windsor Street Capital LP (CRD#: 34171/SEC#: 8-46219).

Notably, the FINRA arbitration claim has ties to Florida. None of the three respondents are currently active in the securities industry: Mr. Mastroianni Jr. has been barred, Mr. Riccardi Jr. is no longer registered as a broker, and Windsor Street Capital has been permanently expelled for fraud and other misconduct.

FINRA Arbitration Award: Unsuitable Investment Recommendations

The claimants in this arbitration claim raised several different causes of action against brokers Anthony Mastroianni Jr. and John F. Riccardi Jr. and their firm Windsor Street Capital. Among other things, the investors alleged:

Common law fraud;
Broker negligence;
Gross negligence;
Breach of fiduciary duty;
Unsuitable investment recommendations;
Overconcentration of investments; and
Failure to supervise.

The controversy pertained to a number of different securities, including several Real Estate Investment Trusts (REITs) and other allegedly risky securities products. In reviewing the allegations, the FINRA Arbitration Panel ruled in favor of the investors. The Panel determined that the brokers and the brokerage firm were jointly and severally liable for the investors’ losses. They were awarded approximately $250,000 in compensatory damages, attorneys’ fees, and other legal costs.

Windsor Street Capital: Expelled From the Securities Industry

Formerly known as Meyers Associates, in May of 2019, Windsor Street Capital LP was expelled from the securities industry. Previously this New York City-based brokerage firm was licensed to operate in most of the country, including in Florida. Windsor Street Capital had 52 total disclosures on its securities industry record—37 regulatory events and 15 arbitration awards. FINRA’s Department of Enforcement determined that the brokerage firm engaged in a complex fraud scheme. Material omissions and misrepresentations were made to investors.

Broker Anthony Mastroianni Jr.: Barred From the Securities Industry

In December of 2016, former Meyers Associates (Windsor Street Capital) broker Anthony Mastroianni Jr. was barred from the securities industry for failing to cooperate with a FINRA investigation into allegations that he churned the account of an elderly investor. Churning is a term used to describe a form of excessive trading where a broker moves in and out of positions so quickly as to make it almost impossible for their client to make money, all while generating commissions and fees. Additionally, FINRA also alleged that Mr. Mastroianni Jr. improperly borrowed nearly $90,000 from a senior citizen inventor.

Call Our Florida FINRA Arbitration Attorneys for Immediate Help

At Carlson & Associates, P.A., our Miami unsuitable investment attorneys are focused on helping clients recover full financial compensation for their damages. We handle the full range of broker negligence matters, including unsuitable investment and overconcentration cases. To arrange a fully confidential assessment of your investment fraud claims, please contact our Miami law office today.

Resource:

finra.org/sites/default/files/aao_documents/20-00620.pdf

By Staff | Posted on July 15, 2020