Last Updated: October 2025
U.S. Securities and Exchange Commission (SEC) Orders Disbursement of Fair Fund
On September 30, 2025 the SEC issued and Order Directing Disbursement of Fair Fund in the following Administrative Proceedings:
- In the Matter of Alexander Capital, L.P. File No. 3-18561
- In the Matter of Philip A. Noto II, File No. 3-18562
- In the Matter of Barry T. Eisenberg, File No. 3-18563
Pusuant to Rule 1101(b)(6) of the Commission’s Rules on Fair Fund and Disbursement Plans, $592,957 was released for distribution to compensate nineteen harmed investors who received 100% of their losses, plus reasonable interest.
The creation of this Fair Fund emanates from a June 29, 2018 settlement against Alexander Capital in which the SEC found that from 2012 through 2014, Alexander Capital failed to reasonably implement policies and procedures and permitted a lax compliance environment in which its registered representatives were not monitored or disciplined, procedures were not followed, and indications of potential misconduct were not acted upon by two supervisors of three representative. As a result the three representatives violated the antifraud provisions of the federal securities law in the handling of customer accounts without anyone at Alexander Capital preventing or detecting these violations.
Philip Noto was barred from acting as a broker by FINRA in 2019.
Barry Eisenberg left Alexander Capital in 2023 and is not currently registered with any FINRA broker dealer.
Alexander Capital discloses 6 regulatory events on their FINRA record.
Brokerage Firms Have a Duty to Supervise their Registered Representatives
Brokers and financial advisors are required to take into account an investors age, risk tolerance, investment experience, investment objectives and liquidity needs when making investment recommendations.
Financial advisors and their firms are also charged with a duty to conduct appropriate and adequate due diligence on the investments they recommend, especially in the case of retirees or those anticipating retirement in the near future.
Firms can be held liable for damages if any, or all of the following are found:
- The investment is not suitable
- The firm and/or financial professional failed to satisfy their due diligence requirement
- You were not adequately apprised of risks associated with the investment
- The broker recommended that you invest too great a percentage of your liquid net worth in a particular investment
Individuals can pursue their claims through arbitration with the Financial Industry Regulatory Authority (FINRA). See this for more details about FINRA arbitration.
The Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Rex Securities Law
Investigations of other Alexander Capital brokers
With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Rex Securities Law provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors and broker dealers.
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