April 14, 2021 Comments Off on FINRA Alleges Advisor David Melilli made Excessive, Unsuitable Trades Blog, Current Investigations

FINRA Alleges Advisor David Melilli made Excessive, Unsuitable Trades

FINRA Alleges Advisor David Melilli made Excessive, Unsuitable Trades, featured by top securities fraud attorneys, The White Law Group

David Melilli, Sagepoint Financial has Customer Complaints

According to public records on the Financial Industry Regulatory Authority’s website, on April 1, 2021, the regulator purportedly made a preliminary determination to recommend that disciplinary action be brought against former Sagepoint advisor David Melilli of Moorestown, New Jersey.

FINRA’s allegations against Melilli reportedly include the following:

-unsuitable and excessive trading in customer accounts;
-using discretion without written authorization in customer accounts;
– unauthorized trading in the account of a deceased customer;
– forging customer signatures on account documents and causing member firm to maintain inaccurate books and records;
– sending written communication entitled “Writing Covered Calls” to customer without obtaining prior approval from member firm and use of a misleading communication with a customer;
– using text messages to conduct securities-related business, in violation of applicable firm policies, and causing firms to violate Regulation S-P and maintain inaccurate books and records;
-opening and maintaining multiple outside securities accounts without the prior written consent of member firms.

For Finra’s full findings see, FINRA Case #20190636810.

According to his FINRA BrokerCheck report, Melilli was reportedly registered with Sagepoint Financial from 2010 until August 2019. He made the move to Cambridge Investment Research where he reportedly worked from August 2019 until he was allegedly discharged in January 2020 for allegations that he “placed discretionary trades without authority.”

Melilli reportedly has three customer complaints filed against him in 2020, according to his broker profile.

Filing a Complaint against your Brokerage Firm

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, 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. For more information, please visit our website, www.whitesecuritieslaw.com.

 

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