Alexander Capital and Two Supervisors Fined by SEC

The Securities and Exchange Commission (SEC) recently brought a regulatory action against Alexander Capital and two of its supervisors, Barry Eisenberg and Philip Noto.  The SEC alleged that Alexander Capital, Eisenberg, and Noto failed to adequately supervise the trading at Alexander Capital’s Staten Island, New York branch office.  The SEC alleged that between 2012 and 2014, the firm failed to implement procedures to prevent its brokers from engaging in unsuitable investment recommendations, churning or excessively trading customer accounts, and unauthorized trading.

The SEC also further alleged that Eisenberg and Noto failed to stop this conduct.  As part of its investigation, the SEC barred Philip Noto from acting in any supervisory capacity and fined him $20,000.  The SEC also fined Eisenberg $15,000 and barred him from acting in any supervisory capacity, although Eisenberg may reapply after five years.  Finally, Alexander Capital was ordered to pay over $410,000 in disgorgement, civil penalties, and interest.

Brokerage firms like Alexander Capital have a responsibility to adequately supervise all representatives who are registered through their firm.  Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; and Ann Arbor, Michigan.  We represent investors in FINRA arbitration proceedings in all 50 states, Our attorneys have represented over one thousand investors against many brokerage firms in the past, including Alexander Capital.

Click to view:  Noto, Philip SEC Order

Click to view:  Eisenberg, Barry SEC Order

Click to view:  Alexander Capital SEC Order

If you lost money with Alexander Capital, please CONTACT US at 720-599-3505 for a free evaluation of your case.

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency.  Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency.  All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact.  This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice.  Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis.  In contingent representation, clients may still be liable for costs.