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Charles Malico Faces Allegations of Negligence and Excessive Trading

Apr 11, 2022 Failure to Supervise

Charles Malico (CRD #: 1507282), a broker registered with Network 1 Financial Securities, is involved in allegations of negligence and excessive trading, according to his BrokerCheck record, accessed on April 6, 2022. Read on if you have questions about Charles Malico’s conduct as a broker.

Allegations of Negligence

In a pending dispute, an investor alleges Charles Malico engaged in negligent behavior including negligent supervision, as well as breaching his fiduciary duty. The investor seeks $65,000 in damages.

FINRA Rule 3110

FINRA Rule 3110 requires firms to create and maintain systems to supervise the activity of their brokers and ensure compliance with FINRA rules. This includes designating a principal to conduct supervisory activities and verifying that they have the necessary experience or training to be qualified to supervise.

Allegations of Excessive Trading

On September 10, 2015, an investor alleged Charles Malico performed an excessive number of trades in their account, recommended unsuitable investments, and breached his fiduciary duty. The investor seeks $99,990 in damages in this pending suit.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit clients’ profiles. Investors’ profiles contain information including investors’ age, financial goals, and other investments.

Excessive trading, also known as churning, violates quantitative suitability. This type of suitability requires that recommended trades fit an investor’s profile when considered collectively—it isn’t enough for trades to be suitable when considered individually.

Investors who have lost money through unsuitable investment recommendations or excessive trading may recover their losses by pursuing FINRA arbitration. 

Background Information

Charles Malico has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Charles Malico is a registered broker in 7 states.

He has also worked for the following firms:

  • Network1 Financial Securities (CRD#:13577)
  • Midamerica Financial Services (CRD#:47351)
  • Global Arena Capital Corp (CRD#:16871)
  • B.B. Graham & Company (CRD#:41533)
  • Liberty Partners Financial Services (CRD#:130390)
  • Global Arena Capital Corp (CRD#:16871)
  • Clark Dodge & Company (CRD#:23288)
  • J.P. Turner & Company (CRD#:43177)
  • VFinance Investments (CRD#:44962)
  • Great Eastern Securities (CRD#:2061)
  • First Union Securities Financial Network (CRD#:11025)
  • J.P. Turner & Company (CRD#:43177)
  • Argent Securities (CRD#:15297)
  • Tasin & Company (CRD#:30709)
  • Meyers Pollock Robbins (CRD#:13436)
  • Gaines, Berland (CRD#:14623)
  • Josephthal Lyon & Ross (CRD#:3227)
  • The Stuart-James Company (CRD#:11691)
  • Robert Todd Financial Corp. (CRD#:7423)
  • Vanderbilt Securities (CRD#:14280)
  • J. T. Moran & Company (CRD#:15655)
  • Sherwood Capital (CRD#:10474)
  • First Jersey Securities (CRD#:6621)

Kurta Law Can Help

If you worked with Charles Malico and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.