Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against securities broker David Charles Cannata and brokerage firm Craig Scott Capital, LLC for unsuitable recommendations, excessive trading (a/k/a churning) and failure to supervise. According to Mr. Cannata’s FINRA BrokerCheck he has been the subject of at least eight (8) customer complaints.
In September 2016, David Charles Cannata was barred from association with any FINRA member in any capacity and ordered to pay $1,566,298.14, plus interest, in restitution to customers. The sanctions were based on findings that Cannata made unsuitable recommendation and excessively traded in customer accounts at his member firm. The findings stated that Cannata had de facto control over the customer accounts and made all investment decisions. Cannata’s trading strategy in each client’s account generated extraordinary levels of activity inconsistent with the clients’ objectives and financial circumstances. The clients sustained losses ranging from $114,171 to $1,263,527 as a result of Cannata’s trading strategy.
The findings also stated that Cannata churned his customers’ accounts. Cannata knowingly or recklessly disregarded his customers’ interests by seeking to maximize his own compensation. Both the high turnover rate and cost-to-equity ratio establish that Cannata recommended and executed trades in the customers’ accounts for his own benefit, without regard for his customers’ resources or best interests. As a result of his conduct, Cannata violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 and FINRA Rule 2020.
If you or someone you know lost money investing with David Charles Cannata and/or Craig Scott Capital, LLC, you may be entitled to recover your investment losses through FINRA arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 or firstname.lastname@example.org for a free and confidential case evaluation.