There are options for clients of former Network 1 Financial Securities Inc. broker Charles Malico (CRD# 1507282) who suffered investment losses due to unsuitable investment recommendations. He was registered with Network 1 Financial Securities Inc. in Huntingon Station, New York, from 2016 to 2022. Previously, he was registered with Network 1 Financial Securities Inc. in Huntingon Station, New York, from 2015 to 2016 and with Midamerica Financial Services, Inc. in Melville, New York, from 2014 to 2015.
In October 2022, FINRA sanctioned him to pay a $5,000 civil and administrative penalty and fine and suspended him for six months. According to Acceptance, Waiver & Consent, he recommended a “series of transactions in a retail customer’s account that was excessive in light of the customer’s investment profile. The findings stated that the trades that Malico recommended in the customer’s account resulted in an annualized cost-to-equity ratio exceeding 158 percent – meaning that the customer’s account would have had to grow by more than 158 percent annually just to break even.” FINRA found that his recommendations caused the client to pay more than $54,000 in commissions and trading costs, which made it almost impossible for the client to see a profit. The customer lost more than $17,500 as a result of Malico’s recommendations.
Charles Malico Customer Complaints
He has been the subject of eight customer complaints between 1990 and 2022, according to his CRD report. Recent complaints were regarding:
June 2022. “Charles Malico was named in a customer complaint that asserted the following causes of action: Suitability; Churning; Unauthorized Trading; Fraud in violation of Section 10(b) and 10b-5 of the Securities Exchange Act of 1934, Misrepresentation and Breach of Fiduciary Duty / Breach of Covenants of Good Faith Breach of Fair Dealing, Negligent Supervision: Breach of Contract; Unjust Enrichment; Lost Opportunity Damages; Punitive Damages; and Unsuitable Use of Margin.” The customer is seeking $130,000 in damages, and the case is currently pending. The complaint took place while he was registered with Network 1 Financial Securities Inc.
December 2021. “Negligence, Breach of Fiduciary Duty, Negligent Supervision.” The customer is seeking $65,000 in damages and the case is currently pending. The complaint was regarding equity OTC, and it took place while he was registered with Network 1 Financial Securities Inc.
September 2015. “churning, unsuitability, breach of fiduciary duties.” The customer is seeking $99,990 in damages. The complaint took place while he was registered with Midamerica Financial Services, Inc.
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, Network 1 Financial Securities Inc. may be liable for investment or other losses suffered by Charles Malico’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.
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