FINRA Begins Disciplinary Proceedings Against Broker Accused of Stealing Client Funds
The Financial Industry Regulatory Authority has started disciplinary proceedings against Erik Patrick Pica, who is currently registered through Joseph Stone Capital.
The Financial Industry Regulatory Authority has started disciplinary proceedings against Erik Patrick Pica, who is currently registered through Joseph Stone Capital, for allegedly stealing $200,000 from an elderly client to put a down payment on a home he and his wife purchased.
According to FINRA, in February 2019, Pica’s customer gave him a $200,000 check to deposit into a brokerage account at Joseph Stone to invest in a private placement involving pre-IPO shares of a technology company. Pica directed the customer to write a check to “Light Capital Group,” a company wholly owned by Pica.
Instead of depositing the $200,000 into the brokerage account, FINRA claims that Pica transferred the money to his personal bank account and used it to fund the down payment of a home purchased in his and his wife’s name.
In the ensuing months, FINRA alleges that Pica lied repeatedly to his client and Joseph Stone about what happened to the money. For example, when the client asked Pica in May 2019 what had become of his $200,000, Pica falsely told the customer that he had put the money back into his brokerage account.
Pica is also accused of providing false or misleading information to FINRA. His personal office was locked when FINRA staff arrived on May 15, and Pica —the only person with a key to his office—allegedly told Joseph Stone that he could not come in until the following day.
Pica supposedly entered his office after FINRA left that evening, which he denied, but the regulators claim that items on his desk had been rearranged and removed.
Pica also refused to produce documents and information requested by FINRA, including the mortgage application he submitted to the bank in connection with the home that was allegedly purchased using client money.
Since 2004, Pica has been affiliated with Eastbrook Capital Group, Chicago Investment Group, First Midwest Securities, and Global Arena Capital, in addition to Joseph Stone. Eastbrook, Chicago Investment, and Global Arena have since been expelled by FINRA.
