FINRA Suspends New York-Based Financial Advisor for Nine Months
John Sebastion Cangialosi, currently an SW Financial broker, was suspended by the Financial Industry Regulatory Authority (FINRA) in September 2021 for nine months. The broker was ordered to pay $271,622 in restitution for allegedly engaging in unsuitable trading in three customer accounts during his time as a Worden Capital broker.
The New York-based financial advisor has consented to the sanctions but without denying or admitting to the findings. Cangialosi also must pay a civil/administrative fee of $7,500.
Our New York stockbroker fraud attorneys are speaking to former customers of John Cangialosi that suffered significant investment losses while working with him. Call Shepherd Smith Edwards and Kantas (SSEK Law Firm) in New York at (716) 261-3529. Throughout the US, call (800) 259-9010 today.
Ex-Worden Capital Broker Unsuitably Recommended High-Frequency Trading Strategy
According to FINRA, Cangialosi recommended high-frequency trading in the accounts of certain Worden Capital customers. This caused each of them to hold concentrated positions in at least one or more securities for short periods.
Because his customers regularly followed the New York financial advisor’s recommendations, Cangialosi had “de facto control over their accounts.” The ex-Worden Capital financial advisor’s recommendation of high-frequency trading not only led to high turnover rates and cost-to-equity ratios but also caused these customers to lose money.
This included a collective total of over $405K in losses while having to pay $292,657 in commissions and total trading costs of $311,229.
Cangialosi has worked for 19 years in the industry. Other broker-dealers where he used to be registered include Legend Securities, Joseph Gunnar & Co., Brookstone Securities, JP Turner & Co., GunnAllen Financial, and Joseph Stevens & Co.
Some of the Disclosures Listed in John Cangialosi’s BrokerCheck Record
According to his BrokerCheck record, John Cangialosi has allegedly been acting negligently in customer accounts as far back as 2009. Among the disputes against him, his former customers have accused him of churning, misrepresentation, breach of contract, and many other types of securities fraud.
- 1/2018: Alleging churning, unsuitability, unauthorized trading, breach of fiduciary duty, negligence, and breach of contract, this claimant received a $30K settlement.
- 11/2015: This investor fraud claim, alleging churning, negligent misrepresentation, and unsuitability, was settled for $9,999.
- 2/2015: Alleging fraud and breach of contract, this claimant settled for $50K.
- 4/2013: FINRA suspended Cangialosi for three months after he failed to disclose several unsatisfied judgments/liens.
- 2/2009: JP Turner allowed Cangialosi to resign following unauthorized trading allegations made by a customer.
- 1/2009: This unauthorized trading case was settled for nearly $68K.
Recover Your Losses with Experienced Stockbroker Fraud Attorneys
At SSEK Law Firm, we’ve spent many years representing investors across the United States and abroad in their securities arbitration claims. If you suffered financial losses as a result of working with an ex-Worden Capital Management broker, seek legal advice today.
Going through FINRA arbitration alone is never advised. If you believe that a brokerage firm or their registered representative acted negligently when managing your portfolio, speaking with an investment fraud law firm is the best course of action to take. To speak with one of our knowledgeable New York securities fraud attorneys, call SSEK Law Firm at (800) 259-9010 or contact us online.