A Finra hearing panel has expelled Newport Coast Securities from the industry after finding that the firm and some of its brokers churned customer accounts.

The October 17 decision also says that as of this month, Finra, the SEC and state regulators have cancelled the firm’s license to do business.

The hearing panel fined Newport Coast $1 million, which includes any restitution it makes. The total restitution due is $853,617.

Similarly, two former brokers at Irvine, Calif.-based Newport Coast were also barred from the industry, ordered to pay restitution and fined.

Broker Douglas Leone, now barred, was fined $400,000 and ordered to pay customers $325,853.

Leone, currently registered with Salomon Whitney LLC in Farmingdale, N.Y., did not return calls Tuesday.

The other barred rep, Andre LaBarbera, was fined $125,000 and ordered to pay back $86,940 to customers.

LaBarbera, now with Titus Rockefeller LLC, did not return a call left at his office in Long Island, N.Y.

Finra filed the original charges in July 2014, alleging that from September 2008 through May 2013, Newport Coast allowed five brokers, including Leone and LaBarbera, to churn the accounts of 24 customers, using margin and risky securities to generate excessive commissions.

The other three reps did not respond to the complaint and will be subject to a default judgment by a Finra hearing officer.

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