Published On: January 3, 2016

Stoltmann Law Offices is investigating Craig Scott Capital (CSC) and two of its owners Craig Scott Taddonio and Brent Morgan Porges. The firm and the two men recently had a Financial Industry Regulatory Authority (FINRA) Disciplinary Proceeding against them. According to the proceeding, CSC, Taddonio and Porges “fostered a culture of aggressive, excessive trading of customer accounts by encouraging the firm’s registered representatives to use upcoming earnings announcements as a catalyst for recommending hundreds, and in some cases, thousands, of short term trades in customer accounts.” CSC and its owners and brokers earned more than $5 million in commissions while customers suffered more than $9 million in losses in accounts where the annualized turnover rates were has high as over 200 and the annualized cost-to-equity ratios were has high as over 800%. Both men and brokers actively traded customer accounts so aggressively, that it resulted in fraudulent churning and quantitatively unsuitable trading. They also failed to establish a reasonable supervisory system, including a written supervisory system wherein they failed to detect the fraudulent churning activities. These are against securities rules and regulations.

Craig Scott Taddonio was registered with Gunnallen Financial in New York, New York from March 2004 until December 2005, JHS Capital Advisors in Bethpage, New York from December 2005 until May 2010 and Brookstone Securities in Uniondale, New York from May 2010 until February 2012. He is currently registered with Craig Scott Capital in Uniondale, New York and has been since February 2012. He has three customer disputes against him, one of which is currently pending.

Porges was registered with On-Site Trading, Andover Brokerage, First Montauk Securities, Gunnallen Financial, Benson York Group, Great Eastern Securities, Joseph Gunnar & Co., Pointe Capital Inc., New Castle Financial Services, Brookstone Securities, Prestige Financial Center, Rockwell Global Capital, Craig Scott Capital and Newbridge Securities Corp. He is currently registered with Newbridge Securities Corp in New York, New York and has been since November 2015. He has four customer disputes against him, one of which is currently pending.

If you or someone you know invested money with CSC or with Taddonio or Porges, you may be entitled to recover some of your money losses by calling our securities law firm in Chicago to speak to an attorney about your options. We sue firms such as CSC in the FINRA arbitration forum to help investors recover their losses. The call is free with no obligation. Please call soon as time is of the essence. 312-332-4200.

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