According to public records with the Financial Industry Regulatory Authority (FINRA), Global Arena Capital Corp broker Erik Pica has customer complaints against him. In May 2018, a customer alleged that Pica recommended an unsuitable leveraged exchange-traded fund (ETF), was negligent in his supervisory duties, and over-concentrated the account. In April 2018, a customer alleged that Pica executed unauthorized trades of shares in Rite Aid Corporation and Valeant Pharmaceutical. In March 2018, a customer alleged that Pica recommended unsuitable and “highly speculative” investments, churned the account and was negligent in his supervisory duties. He was also accused of misrepresenting material facts. These are all against securities laws and internal firm rules.
Churning, also referred to as “excessive trading,” is a particularly egregious form of broker misconduct, and is when a broker trades in and out of securities, sometimes on a daily basis in order to generate commissions for himself. This typically results in the customer paying unnecessary fees. ETFs tend to be highly risky and illiquid investments that are not suitable for all investors based on their age, net worth, investment sophistication and investment risk tolerance and objectives. If the ETFs Erik Pica recommended for his clients were not suitable based on these factors, and others, his former brokerage firm, Global Arena, may be liable for customer losses on a contingency fee basis in the FINRA arbitration forum.
Erik Pica was previously registered with First Midwest Securities in New York, New York from August 2009 until February 2012 and Global Arena Capital in New York from January 2012 until April 2015. He is currently registered with Joseph Stone Capital in New York, and has been since April 2015. He has seven customer disputes against him, four of which are currently pending, according to FINRA records available to the public.
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