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Investor Seeks Six Figures in Disputes with Elaine Zito

Jul 11, 2022 Failure to Supervise

Elaine Zito (CRD #: 2849238), a broker formerly registered with Newbridge Securities, allegedly made unsuitable investment recommendations, according to her BrokerCheck record, accessed on July 2, 2022. Keep reading if you have questions about Elaine Zito’s conduct as a broker.

Allegations of Negligence 

On April 6, 2022, an investor named Elaine Zito filed allegations of negligent supervision, breach of contract, and unsuitable investment recommendations The client seeks $100,000.01 in damages in this pending dispute.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires firms to create and enforce systems of supervision to ensure brokers maintain compliance with FINRA and SEC regulations.

Unsuitable Investment

On October 18, 2017, an investor alleged that Elaine Zito made an unsuitable partial transfer of $90,000 from a Jackson National Life variable annuity on February 10, 2016. The client seeks $87,397.47 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Brokers must take into account the information in their client’s profile, such as the investor’s age, risk tolerance, and investment goals.

Investors who lose funds through unsuitable investment recommendations may be able to recoup their losses by pursuing FINRA arbitration.

Discharge from Questar Capital Corporation

On November 2, 2016, Elaine Zito was fired from Questar Capital for allegedly violating firm policies and procedures concerning unauthorized trading.

FINRA Rule 3260

FINRA Rule 3260 restricts brokers from exercising their trading discretion outside of pre-authorized discretionary accounts. Accounts must be approved by both the firm and the client before discretionary trading can occur.

Background Information

Elaine Zito has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 53 – Municipal Securities Principal Examination
  • Series 24 – General Securities Principal Examination

She has also worked for the following firms:

  • Newbridge Securities (CRD#:104065)
  • Questar Capital (CRD#:43100)
  • First Allied Securities (CRD#:32444)
  • Next Financial Group (CRD#:46214)
  • Woodbury Financial Services (CRD#:421)
  • SunAmerica Securities (CRD#:20068)
  • MetLife Securities (CRD#:14251)
  • Metropolitan Life Insurance Company (CRD#:4095)
  • Royal Alliance Associates (CRD#:23131)
  • West America Securities (CRD#:35035)
  • Cortlandt Capital (CRD#:25152)

Kurta Law Can Help

If you worked with Elaine Zito and you have concerns about your investments, please contact us today at 877-600-0098 or 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.