Craig Scott Capital, Craig Scott Taddonio and Brent Morgan Porges— Excessive and Unsuitable Trading, Fraudulent Churning, and Supervisory Failures

investors rights attorneysCraig Scott Capital and Owners Craig Scott Taddonio and Brent Morgan Porges Allegedly Fostered a Culture of Aggressive, Excessive and Fraudulent Trading of Customer Accounts and Supervisory Failures

Craig Scott Capital and owners Craig Scott Taddonio and Brent Morgan Porges allegedly fostered a culture of aggressive, excessive and fraudulent trading of customer accounts and supervisory failures, according to a December 2015 FINRA Department of Enforcement Complaint currently under review by attorneys Alan Rosca and Joe Peiffer.

Craig Scott Capital, from January 2012 through December 2014, and its owners allegedly fostered a culture of aggressive and excessive trading of customer accounts that purportedly encouraged the firm’s brokers to use upcoming earnings announcements as a catalyst for recommending hundreds and thousands of short-term trades in customer accounts, the Complaint reports.

The Peiffer Rosca Wolf securities lawyers are currently investigating Craig Scott Capital and its owners for allegedly fostering a culture of aggressive and excessive trading of customer accounts

Craig Scott Capital Has Allegedly Earned more than $5,000,000 in Commissions while Customers Allegedly Suffered More than $9,000,000 in Losses in Accounts Carrying Annualized Cost/Equity Ratios over 800%

Craig Scott Capital, along with its owners and brokers, allegedly earned more than $5,000,000 in commissions while customers had suffered more than $9,000,000 in losses in accounts, according to the aforementioned SEC Complaint being examined by attorneys Joe Peiffer and Alan Rosca.

The Aforementioned Craig Scott Capital customer accounts carried annualized turnover rates as high as over 200 and annualized cost/equity ratios of over 800%, the Complaint further alleges.

Finally, Craig Scott Capital, along with its owners, allegedly failed to establish and enforce a reasonable supervisory system, including written supervisory procedures that would be designed to prevent the quantitative suitability (e.g. excessive trading) and fraudulent churning violations that occurred via the firm, the SEC Complaint also notes.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of aggressive, excessive and fraudulent trading of customer accounts and supervisory failures and are currently investigating Craig Scott Capital’s alleged trading impropriety. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of Craig Scott Capital’s alleged aggressive, excessive and fraudulent trading of customer accounts and supervisory failures are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1174 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.