Did you purchase KGTA Petroleum promissory notes through former Cleveland brokers Jeffrey Gainer or Jerry A. Cicolani Jr.? If so, The White Law Group may be able to help you recover your investment losses through a FINRA arbitration claim.
According to Cleveland.com, Gainer and Cicolani are accused of taking part in a Ponzi scheme that took nearly $21 million from investors. The Securities and Exchange Commission filed a lawsuit against KGTA Petroleum, a company that supposedly bought and sold oil and fuel. KGTA allegedly promised investors 2 to 4 percent returns each month and showed some investors fake tax returns that purportedly showed $200 million in annual sales.
Gainer and Cicolani are accused of recruiting prospective investors and selling KGTA notes without the permission of their employer, FINRA broker-dealer Prime Solutions Securities. Allegedly, Grainer and Cicolani were paid $6 million in fees for selling KGTA notes.
According to the Financial Industry Regulatory Authority (FINRA), both Grainer and Cicolani worked with Prime Solutions Securities beginning in 2010 through 2014 when they were discharged from the firm.
When a licensed broker conducts business outside of the brokerage firm he is registered with, the act can be considered “selling away.” If a broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision and potentially responsible for investment losses in a FINRA dispute resolution claim.
If you are concerned about investments you made with Jeffrey Gainer or Jerry A. Cicolani Jr. and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312) 238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.