FINRA Files Enforcement Action Against Joseph Stone Financial Advisor, Erik Pica, For Allegedly Converting Client Funds
Erik Pica (CRD # 4829533) is a Financial Advisor at Joseph Stone Capital in New York, NY. Erik Pica has been in the securities industry since 2004 and previously worked at Global Arena Capital Corp. and First Midwest Securities.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2019, “FINRA made a preliminary determination to recommend that disciplinary action be brought against Erik Patrick Pica, alleging that Erik Patrick Pica made potential violations, specifically: ·Conversion of funds from a customer, in violation of FINRA Rule 2010 and FINRA Rules 2150(a) and 2010; ·Providing false or misleading information to Joseph Stone Capital, L.L.C. regarding the disposition of funds from a customer, in violation of FINRA Rule 2010; and ·Providing false or misleading information to FINRA staff during on-the-record testimony on May 31, 2019 that was requested pursuant to FINRA Rule 8210 regarding the circumstances under which he obtained and used customer funds, in violation of FINRA Rules 8210 and 2010.” The regulatory enforcement action remains pending.
In addition to the regulatory matter, Erik Pica has seven customer complaint disclosures alleging sales practice misconduct, including three pending complaints. Among the customer complaints against Erik Pica include the following:
- May 2018—”UNAUTHORIZED TRADE OF 6000 SHARES RITE AID CORP UNAUTHORIZED TRADE OF 550 SHARES VALEANT PHARMACEUTICAL.” The matter remains pending.
- May 2018—”NEGLIGENT SUPERVISION, OVER-CONCENTRATION, SUITABILITY.” The matter was settled for $30,000.
- March 2018—”UNSUITABLE SECURITIES, HIGHLY SPECULATIVE, COMMISSIONS, RETIREMENT FUNDS, CHURNING, NEGLIOGENT SUPERVISION.” Alleged damages are $300,000 and the matter remains pending.
- July 2017—”FAILURE TO TREAT CLAIMANT IN A JUST AND EQUITABLE MANNER; BREACH OF FIDUCIARY DUTY; BREACH OF CONTRACT; NEGLIGENCE AND NEGLIGENT MISREPRESENTATION.” Alleged damages are $120,000 and the matter remains pending.
- December 2011—”CUSTOMER CLAIMS RR REPRESENTED HE OWNED THE ETF HE WAS RECOMMENDING CUSTOMER TO PURCHASE. CUSTOMER CLAIMS HE DID NOT FULLY UNDERSTAND THE PRODUCT.” The matter was settled for $4,999.
For a copy of Erik Pica’s CRD, click https://brokercheck.finra.org/individual/summary/4829533#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
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