Frank Giacalone Allegedly Churned Client’s Account

Frank Giacalone (CRD #: 4314174), a broker registered with Aegis Capital Corporation, is involved in a pending dispute, according to his BrokerCheck record, accessed on March 3, 2023. Read on if you have questions about his alleged conduct as a broker.

Pending Investor Dispute

On December 15, 2022, an investor filed a dispute alleging that Frank Giacalone engaged in the following forms of misconduct between March 2013 and August 2022:

• Unauthorized trading
• Misrepresentation and omission of material facts
• Churning and other violations of the suitability rule
• Breach of contract
• Negligence

The client seeks $139,224 in damages in this pending dispute.

FINRA Rule 3260

FINRA Rule 3260 requires brokers to receive written authorization from their clients before engaging in discretionary trading. Discretionary accounts must also be approved by the firm before this trading can occur.

FINRA 2020

FINRA Rule 2020 forbids the use of manipulative or deceptive tactics, like the misrepresentation or omission of material facts, as they relate to the purchase and sale of securities.

FINRA 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles contain information about an investor’s age, risk tolerance, and financial goals.

Excessive trading (also called churning) racks up fees and commissions that can significantly reduce or even cancel out a client’s returns. It violates this rule’s requirement for the quantitative suitability of recommendations.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence, ranging from unsuitable investment recommendations to unauthorized trading. Investors who have lost money through broker negligence may be able to recover their funds through FINRA arbitration.

Previous Dispute

On March 8, 2022, an investor alleged that Frank Giacalone made unsuitable investment recommendations and purchases. The client sought $71,000 in damages but the dispute was denied by the firm.

However, investors should know that firms can deny disputes without an outside review. Investors may be able to recover their funds by pursuing FINRA arbitration following a denial.

Background Information

Frank Giacalone has passed the following exams:

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

Frank Giacalone is a registered broker in 43 states and Puerto Rico.

He has also worked for the following firms:

• Obsidian Financial Group (CRD#:104255)
• Empire Financial Group (CRD#:28759)
• Ehrenkrantz King Nussbaum (CRD#:113525)
• Ehrenkrantz King Nussbaum (CRD#:31140)
• Weatherly Securities Corporation (CRD#:11081)

Kurta Law Can Help

If you worked with Frank Giacalone 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.