May 12, 2021
On January 22, 2021, former general securities representative Anthony Tricarico consented to sanctions imposed by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in excessive and quantitatively unsuitable trading in customer accounts. The alleged misconduct occurred between November 2014 and November 2015 when Tricarico was associated with Aegis Capital Corp. in New York City.
According to the Letter of Acceptance, Waiver, and Consent (AWC), Tricarico’s trading in the accounts of three customers generated a cost-to-equity ratio of 161.7% and an annualized turnover rate of 46.58 for one married couple and a cost-to-equity ratio of 92% and an annualized turnover rate of 17.73 for another customer. The married couple paid over $30,000 in commissions and incurred losses totaling $28,318, while the other customer paid $14,118 in commissions and trading costs and incurred losses totaling $11,530.
FINRA asserts that the Tricarico’s recommendations were excessive and quantitatively unsuitable considering his customers’ investment profiles. Thus, Tricarico violated FINRA Rules 2111 and 2010. He consented to a six-month suspension from associating with any FINRA member in any capacity and a $5,000 fine.