Pasquale Capone Subject of a Six-Figure Investor Dispute
Pasquale Capone (CRD #: 2487767), a broker registered with Wells Fargo Clearing Services, is the subject of an investor dispute. This is the eighth investor dispute on his BrokerCheck record, accessed on February 27, 2024. Details concerning this dispute are provided below.
Six-Figure Investor Dispute
On November 21, 2023, an investor alleged that Pasquale Capone recommended unsuitable investments. The investor is seeking $600,000.
Previous Investor Disputes
The two previous disputes on his record allege he recommended unsuitable investments. These disputes were collectively settled for $117,500.
What is a Suitable Investment?
FINRA defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age.
FINRA Rule 2111 identifies the three prongs of a suitability determination as 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
- Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client’s personal profile. The profile includes information on the investor’s financial goals, investing experience, and risk tolerance.
- Quantitative Suitability: Brokers with control over a customer’s account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
Background Information
Pasquale Capone has passed the following exams:
- Series 66 Uniform Combined State Law Examination
- Series 65 Uniform Investment Adviser Law Examination
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 Futures Managed Funds Examination
- Series 7 General Securities Representative Examination
- Series 9 General Securities Sales Supervisor – Options Module Examination
- Series 10 General Securities Sales Supervisor – General Module Examination
- Series 8 General Securities Sales Supervisor – (Options Module & General Module)
He is a registered broker in 28 states and is a registered investment adviser in New York and Texas.
Pasquale Capone has registered with two firms: Wells Fargo Clearing Services (CRD #: 19616) and Morgan Stanley DW (CRD #: 7556).
Kurta Law Can Help
If you have worked with Pascuale Capone and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that 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. Do not let securities fraud go unchecked. Start your recovery process today.