FINRA Bars Broker David Melilli after Allegations of Excessive, Unsuitable Trades
According to the Financial Industry Regulatory Authority (FINRA), on November 8, 2021, the regulator has barred former Sagepoint Financial advisor David Melilli of Moorestown, New Jersey after he reportedly refused to provide information in its investigation.
FINRA was reportedly investigating the following allegations against Melilli: unauthorized trading in the account of a deceased customer; unsuitable and excessive trading in customer accounts; and using discretion without written authorization in customer accounts, among others.
For FINRA’s full findings see, FINRA Case #20190636810.
According to his FINRA BrokerCheck report, Melilli was reportedly registered with the following firms, among others, during his career in the securities industry:
09/16/2019 – 02/04/2020, CAMBRIDGE INVESTMENT RESEARCH, INC. (CRD#:39543), Moorestown, NJ
07/11/2018 – 07/31/2018, LPL FINANCIAL LLC (CRD#:6413), MOORESTOWN, NJ
01/25/2010 – 08/21/2019, SAGEPOINT FINANCIAL, INC. (CRD#:133763), MOORESTOWN, NJ
Melilli was reportedly dismissed from Cambridge Investment Research in January 2020 for allegations that he “placed discretionary trades without authority.” Melilli reportedly has three customer complaints filed against him in 2020, with two still pending, according to his broker profile. Allegations include unauthorized trades, among others.
Potential Lawsuits to Recover Financial Losses
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as unauthorized or excessive trading, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you are concerned about investments with David Melilli and Sagepoint Financial, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, www.whitesecuritieslaw.com.
For more information on the firm’s investigation, please see: