Erik Pica, Broker for Joseph Stone Capital, Sued by FINRA for Misuse of Client Funds

Eric Pica is under investigation for misappropriation and allegedly providing false testimony.

The Sonn Law Group is investigating allegations that Erik Pica committed misconduct. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.


Erik Pica (CRD#:4829533)was named a respondent in a FINRA complaint alleging the he converted and misused $200,000 from an elderly customer. The complaint alleges that the customer gave Pica $200,000 to deposit into the customer’s brokerage account at Pica’s member firm. Pica directed the customer to write a check for $200,000 to a company wholly owned by Pica. Then, instead of depositing the $200,000 into the customer’s brokerage account, as the customer intended, Pica transferred the money to his personal bank account, where he used it to fund the down payment on a home he purchased in his and his wife’s name.

The complaint also alleges that Pica provided false or misleading information to FINRA during its examination of his firm’s branch office. Pica’s personal office was locked when FINRA arrived and Pica, the only person with a key to his office, told his firm that he could not come to the branch to grant FINRA access until the following day. However, after FINRA left the firm that evening, Pica surreptitiously returned to the branch and entered his office. The next day, when FINRA returned to the branch, items on Pica’s desk had been rearranged and removed. When questioned, Pica lied and told FINRA that he had not entered the firm branch office the day before.

The complaint further alleges that Pica provided false or misleading information to FINRA during on-the-record testimony. Pica falsely testified that he had not communicated with anyone from the firm about when FINRA had left the branch office. In truth, Pica asked his supervisor, who arrived at the branch office during FINRA’s examination, to call him when FINRA had left for the night. Pica falsely testified that he never told the customer that the $200,000 had been deposited into the customer’s firm brokerage account, when, in fact, he made that false claim to the customer. Pica falsely testified that he never told his supervisor that he had returned the customer’s money to the customer, when, in fact, he repeatedly made that false claim to his supervisor.

Finally, the complaint alleges that Pica refused to produce documents and information requested by FINRA, including the mortgage application he submitted to the bank in connection with the home he and his wife purchased using the customer’s money.

Pica has been the subject of multiple customer disputes over his career.

On May 10, 2018, Pica was named in a dispute alleging unauthorized trading. The customer is seeking $7,613.65. This dispute is still pending.

On May 4, 2018, Pica became involved in a customer dispute in which a client alleged negligent supervision, over-concentration, and suitability. The client originally requested $293,000 in damages, but Global Arena Capital Corp. settled the matter for $30,000. The investment product in question was a leveraged ETF.

On March 21, 2018, Pica became involved in a pending customer dispute in which a client alleges he recommended unsuitable securities and engaged in churning, among other complaints. The customer is asking for $500,000 in damages. The investment product in question is OTC (Over-the-Counter) equity.

On July 3, 2017, Erik Pica became involved in a pending customer dispute in which a client is seeking $120,000 in damages. The claimant alleges that Erik Pica breached his fiduciary duty and engaged in negligence, among other actions. The investment product in question is also OTC (Over-the-Counter) equity.

On December 22, 2011, Erik Pica became involved in a customer dispute in which a client claimed “registered representative represented he owned the ETF he was recommending customer to purchase. Customer claims he did not fully understand the product,” according to information available on Pica’s BrokerCheck report. The client originally requested $5,133 in damages, but First Midwest Securities settled the matter for $4,999.


Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim

CONTACT US FOR A FREE CONSULTATION

Se Habla Español

Contact our office today to discuss your case. You can reach us by phone at 844-689-5754 or via e-mail. To send us an e-mail, simply complete and submit the online form below.