Anthony Sica, Broker for Joseph Gunnar & CO., Facing $750k Customer Dispute

A customer filed a dispute against Sica based on allegations of unsuitability and negligent supervision.

The Sonn Law Group is investigating allegations that Anthony Sica recommended unsuitable investments. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Anthony Sica (CRD#: 1332626) has been in the financial industry since 1985. He has been registered with Joseph Gunnar & Co., LLC, since October 2003. Prior to that, he was registered with Lehman Brothers, Inc., from 1985 until 1993, Prudential Securities, Inc., from 1993 until 2001, and Wachovia Securities, LLC from 2001 until 2003. 

Over the span of his career, Sica has been involved in three regulatory actions and has been named in nine customer disputes.

The disclosures are listed chronologically below:

February 2020 Customer Dispute

• Status: Pending
• Allegations: “Claimant alleges unsuitable investments, negligent supervision, and related causes in connection with certain private placements made during the period 9/27/2011 – 8/28/2014.”
• Damage Amount Requested: $750,000.00
• Broker Comment: “I vehemently deny this claimant’s accusations and intend to vigorously defend them. The claimant made investments in 8 private placements, made money in 5 and is now claiming 3 were unsuitable but all recommendations were suitable and in accordance with FINRA Rules, policies and guidelines. I was not personally named in these allegations or this complaint.”

January 2018 Regulatory Judgement

• Initiated By: Maryland Securities Commissioner
• Allegations:  “This is a follow on action to the FINRA AWC described in response to questions 14E(2) and 14D(4). Based on the FINRA AWC and Mr. Sica’s request to withdraw, the state and Mr. Sica entered into a Consent Order resulting in the withdrawal of his agent registration from the state of Maryland..”
• Resolution: Consent
• Sanctions:  No Sanction – withdrawal per Consent Order

November 2017 Regulatory Judgement

• Initiated By: FINRA
• Allegations:  “Without admitting or denying the findings, Sica consented to the sanctions and to the entry of findings that he made unsuitable recommendations to an elderly customer living on a fixed income. The findings stated that Sica repeatedly recommended that the customer purchase high-risk, speculative securities that were inconsistent with her investment profile. Sica’s recommendations often resulted in an undue concentration of the customer’s account, which represented substantially all of her liquid assets, in speculative securities. Further, Sica often engaged in short-term in-and-out trading of the speculative investments in the customer’s accounts causing substantial losses. Sica’s recommendations resulted in losses of more than $150,000. The findings also stated that Sica engaged in unauthorized trading by placing trades in the IRA accounts of a customer who Sica knew was deceased causing aggregated losses on the trades totaling approximately $3,039.”
• Resolution: Acceptance, Waiver & Consent
• Sanctions Amount: Civil and Administrative Penalty(ies)/Fine(s) – $20,000.00. Restitution – $3,039.11
• Sanctions: Suspension – All Capacities – Three months
• Sanctions: Undertaking – Sica undertakes to attend and satisfactorily complete 10 hours of continuing education concerning the suitability or dealing with senior customers by a provider not unacceptable to FINRA.
• Regulator Statement: Fines paid in full on December 7, 2017.
• Broker Comment: “Item one – The customer in question has been my customer since 1987. The customer has purchased both conservative and speculative investments for over 25 years from me. The customer’s investment profile was moderately aggressive. The customer held conservative, income-producing investments and also traded in more speculative investments. Item two- Customer gave Power of Attorney to his daughter to handle his IRA account. When the customer passed away, the daughter became the sole beneficiary on that account. Though I spoke to the daughter about the transactions, I didn’t understand at that time that the Power of Attorney ended on death. The daughter who inherited this account never complained, signed and sent back the required paperwork, and remained my customer afterward for many years.”

December 2013 Customer Dispute

• Status: Settled
• Allegations:  “Letter received alleging unsuitability, frequent trading, unauthorized trading, and KYC customer rules during the period from 2009 through 2013.
• Damage Amount Requested: $479,000.00
• Settlement Amount: $302,500.00
• Broker Comment: “Mr. Sica has had a long-standing relationship with client and denies all allegations and intends to vigorously defend all charges. This matter was settled without admitting liability to avoid further costs and uncertainties of continued litigation.”

March 2010 Customer Dispute

• Status: Settled
• Allegations:  “Poor performance, mismanagement and unsuitable investments”
• Damage Amount Requested: $356,772.79
• Settlement Amount: $157,500.00
• Broker Comment: “The RR had a long relationship with claimant and denies any and all claims. If the account remained with the RR, to this point in time, much of the loss would not exit. The loss is due to unprecedented market conditions. It was settled to avoid the cost of further litigation.”

December 2001 Customer Dispute

• Status: Settled
• Allegations:  “Customer alleged unsuitability of purchase of sunbeam stock and uncertain REIT stocks.”
• Damage Amount Requested: $35,380.64
• Settlement Amount: $18,000.00

November 1998 Customer Dispute

• Status: Denied
• Allegations:  “PSI Client alleges that his account was churned with losses of $59,361.04.
• Damage Amount Requested: $59,361.04

July 1994 Regulatory Judgement

• Initiated By: Missouri Secretary of State/Securities Division
• Allegations:  “Sica engaged in a dishonest or unethical practice.”
• Resolution: Consent
• Sanction Details: Respondent agrees to pay $1,000 for costs of investigation immediately prior to the execution of the order; respondent agrees to have all of his trades supervised for five years from the date of this order; respondent agrees to have his supervisor provide a written report with this office every 6 months verifying that all of respondent’s trades have been done properly and that there have been no further complaints against him.
• Broker Comment: I was registered in Missouri for 8 straight years with no problems or [complaints] in the state of Missouri. When I moved firms from Sherson to Prudential, the State of Missouri chose to examine my compliance record. The State of Missouri requested $1000.00 which prudential paid to cover their costs of examining my record. I agreed to this in order to be registered in Missouri. At no time was I charged with dishonest or unethical practice, nor found guilty of such. Any matters pending have been closed with no findings of liabilities to me. I am currently registered in the State of Missouri.

March 1993 Customer Dispute

• Status: Settled
• Allegations:  Customer questioned the authority of its own administrative accountant to authorized transactions in one of the [customer] endowment accounts and claimed damages of $43,415
• Damage Amount Requested: $43,415.06
• Settlement Amount: $26,000.00
• Broker Comment: “Denied the account in question was a separate endowment account fund set up by [third party] for the [customer]. Mr. Sica served as FC to the account. [Third party] and [third party] can administrative accountant for. The [customer] made all investment decisions regarding the account and authorized all transactions.”

July 1992 Customer Dispute

• Status: Settled
• Allegations:  Misrepresentation, omission and $39,235.03 in damages.
• Damage Amount Requested: $50,000.00
• Settlement Amount: $22,000.00
• Broker Comment: “Settlement for $22,000. I did business with a customer based on his stated investment objectives. He was a sophisticated investor aware of all risks involved in investing in the market. Our relationship was fine until the market and his stocks went down. I denied and continue to deny any wrongdoings. I have agreed to the compromise and settlement in order to eliminate the time burden and litigation expense.

March 1991 Customer Dispute

• Status: Settled
• Allegations:  Alleged fraud, breach of fiduciary duty and excessive trading. Alleged damages claimed are $161,519.87 in compensatory if claimants assume no part of the liability; $83,092.20 if claimants assume part of the liability.
• Damage Amount Requested: $161,519.87
• Settlement Amount: $54,000.00
• Broker Comment: “Amount of settlement was $54,000; FC is to contribute $18,000.00 Shearson will pay the balance. I did business with a customer for approximately 12 months. During that time all transactions were appropriate based on clients stated investments objectives and financial ability. The customer was fully aware of transactions and participated in every decision to buy and sell the stocks purchased that were recommended and followed by the firm. But, unfortunately, due to the volatility of the stock market, he suffered a decrease in his equity.”

July 1990 Customer Dispute

• Status: Settled
• Allegations:  Unsuitable excessive equities alleged damages $68,500.00
• Damage Amount Requested: $68,500.00
• Settlement Amount: $28,000.00
• Broker Comment: “Settled with payment of $28,000.00 to claimant Shearson Lehman Brothers paid total settlement”

Contact Us Today

The Sonn Law Group is currently investigating allegations that Anthony Sica made unsuitable recommendations. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.