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New York State Broker Albert Foronda Recovery Loss Options

Posted on Wednesday, December 11th, 2019 at 2:04 pm    

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Were you the victim of New York state broker Albert Foronda (CRD# 5737620)? Foronda has been registered with Spartan Capital Securities, LLC in New York, New York since 2017. Previously, Foronda was registered with Worden Capital Management LLC in New York, New York from 2016 to 2017 and previously with Legend Securities, Inc. in New York, New York from 2011 to 2016. 

In February 2020, FINRA sanctioned Foronda to pay a $7,500 civil and administrative penalty and fine, $2,765 in restitution, and suspended him for 45 days after he, “consented to the sanctions and to the entry of findings that, while associated through a member firm, he effected unauthorized transactions in customers’ accounts without the customers’ verbal or written authorization for the trades. The findings stated that Foronda sold one security a customer owned and used the proceeds from the sale to purchase shares in another security that same day, without the customer’s authorization. The firm compensated the customer for losses on the transactions. Foronda purchased shares in one security through two transactions and later sold shares of the same security in two separate transactions without another customer’s authorization. That customer suffered losses of $2,765 resulting from the unauthorized transactions. The findings also stated that, while associated with the firm and another firm, Foronda effected transactions in customers’ accounts using discretion without written authorization from the customers and without the firms accepting the accounts as discretionary. The other firm did not permit its brokers to maintain discretionary accounts.”

In November 2019, FINRA made a preliminary determination to recommend that disciplinary action be brought against Foronda, alleging unauthorized transactions and exercising discretion without written authorization.

Foronda has been the subject of three customer complaints between 2017 and 2019, according to his CRD report:

May 2019. “Allegations of unsuitability, excessive trading, negligence.” The customer sought $650,000 in damages and the case was settled for $385,000. This case was regarding common and preferred stocks and options and took place while Foronda was registered with Spartan Capital Securities, LLC.

April 2018. “Breach of Fiduciary Duty, breach of contract, negligence.” The customer is seeking $90,000 in damages and the case is currently pending. This case was regarding common and preferred stocks and equity OTC and took place while Foronda was registered with Legend Securities and Worden Capital Management LLC.

July 2017. “Customer alleged that a transaction made in his account wasn’t authorized.” The customer sought $17,228.90 in damages and the case was settled for $14,000. This case was regarding common and preferred stocks and took place while Foronda was registered with Worden Capital Management LLC.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Foronda may be liable for investment or other losses suffered by Foronda’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.