The GMS Group, LLC., Jason Figueroa and Carmine Capone - South Florida, including Boca Raton, Fort Lauderdale and West Palm Beach FINRA Arbitration Attorney:
Recently, the Financial Industry Regulatory Authority announced that The GMS Group, LLC and Carmine Capone had entered into an Acceptance, Waiver and Consent (AWC) relative to their failure to properly supervise a registered representative by the name of Jason Figueroa. According to the AWC, between October 1, 2011 and October 30, 2013 (the "Relevant Time Period"), Mr. Figueroa revised the investment strategy that he was recommending for four customer accounts, each of which was owned by unsophisticated and retired investors with limited investment experience and a moderate risk tolerance. Previously, these customers had been primarily invested in corporate bonds and mutual funds. A major component of the revised strategy, however, was leveraged and inverse-leveraged ETFs, including Proshares Ultra S&P 500, Proshares Ultrashort S&P 500 and Direxion EFT Daily Gold Miners Bull 3X shares, as well as related exchange-tradedd notes, including Barclay's Ipath S&P 500 VIX Short Term Futures ETN and Credit Suisse Velocity Shares Daily Inverse VIX ETN. The risk associated with these investments was exacerbated by the recommended use of margin.