On April 11, 2018, the Securities and Exchange Commission (SEC) announced in a press release that William Gennity was one of three former Alexander Capital brokers charged with defrauding their customers. The others are Rocco Roveccio and Laurence M. Torres (Marqaurdt Law Office LLC previously reported on Rocco Roveccio).
The SEC filed a complaint against Reveccio and Gennity in the U.S. District Court of the Southern District of New York. Previously, it settled its claim against Torres by ordering him to pay more than $400,000 in disgorgement and penalties and barring him from associating with securities firms.
According to the SEC, Gennity imposed large per trade commissions on his customers, then recommended the customers place high frequencies of trades. The trading frequencies combined with transactional costs “doomed any possibility of even a minimal profit” to the customers, but guaranteed large commissions for Gennity, alleged the SEC. In four customer accounts the SEC reviewed, it found Gennity caused customers $324,214 in losses while netting himself $289,000 in ill-gotten gains.
The SEC said Gennity violated its anti-fraud laws by knowingly or recklessly recommending excessive trades benefiting himself at his customers’ expense. This conduct as alleged is a serious securities fraud known as account churning. Churning can deplete customer accounts and even rise to criminal conduct.
Gennity allegedly committed additional violations by placing unauthorized trades in customers’ nondiscretionary accounts, making material misrepresentations and omissions to his customers, and recommending unsuitable investment products and strategies.
Public records state six customer claims have been filed against Gennity, including at least two claiming he churned customers’ accounts. Two of the claims settled and resulted in monetary compensation to investors, two were either closed with no action or withdrawn, and two remain pending.
William C. Gennity entered the securities industry in 2005. From June 2012 through October 2014, he, Roveccio, and Torres were registered as General Securities Representatives with Alexander Capital, L.P. In October 2014, the trio became registered in that capacity with First Standard Financial Company LLC. Gennity continues to work as a broker for First Standard.
Recovery Options for Losses from Churning, Unauthorized Trading, and Unsuitable Investments
If you invested with William Gennity, Rocco Roveccio, or Laurence Torres, Marquardt Law Office LLC is interested in speaking with you. Call the firm at (312) 945-6065 to speak with an attorney and receive a free case evaluation. You may be able to recover your losses.
FINRA arbitration handles most investor claims throughout the U.S. to recover losses from broker misconduct such as churning, recommending unsuitable investment products or strategies, and unauthorized trading.
Marquardt Law Office LLC is a securities law firm that represents clients nationwide in FINRA arbitration who have suffered losses due to misconduct such as fraud and negligence.