Did you lose money investing with Frank Sapareto (CRD# 2274877)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Frank Sapareto. If you suffered losses investing with Frank Sapareto, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of January 28, 2023, Frank Sapareto’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
1 Regulatory Event
1 Employment Separation After Allegations
September 6, 2021 – An Office of Hearing Officers (OHO) decision became final in which Sapareto was barred from association with any FINRA member in all capacities. In light of the bar, a suspension and fine were not imposed. The sanction was based on the findings that Sapareto engaged in an undisclosed outside business activity (OBA). The findings stated that Sapareto began his OBA when he took steps to produce a film in California that he intended to appear in and then market and sell. Before filming began, Sapareto paid, or authorized the payment of, more than $3,000 in expenses for the movie’s production. At around this time, Sapareto recruited a director to direct the planned movie. Sapareto sent the director more than a hundred emails from his personal account concerning, for example, finding and paying actors, finding and paying for a location to film the movie and purchasing filming equipment and advertising. Sapareto paid over $1,000 to rent the location and over $700 to a marketing professional to create a website and for online advertising. Sapareto also paid over $1,000 for filming equipment. In addition, Sapareto formed a Limited Liability Company (LLC) organized in New Hampshire. Sapareto had a business formation service company prepare and file a Certificate of Formation for the LLC with state authorities. The filing identified Sapareto as a member of the LLC and included his electronic signature. Sapareto traveled to California where he and the director filmed the movie, using as a location a cabin he rented for the purpose. The day of filming, he withdrew $5,100 in cash to pay for production expenses, which included fees to actors. Sapareto failed to disclose to the member firm his involvement in the LLC and his activities associated with making the film. The findings also stated that Sapareto made false or misleading written statements to FINRA. Sapareto denied that he had formed an LLC or filed any paperwork to conduct business involving the director or the LLC. Sapareto also denied having any correspondence with the director about the LLC or its activities (except for communicating with him about where they would meet in Los Angeles). The findings also included that Sapareto gave false or misleading testimony at an on-the-record interview. Sapareto appeared and provided testimony under oath, where he falsely denied having any involvement in forming the LLC and stated that he did not file the Certificate of Formation for the LLC and that the filing was done without his knowledge. Further, Sapareto falsely and repeatedly denied engaging in any business with the director or through the LLC involving the making of a film. Sapareto denied emailing the director about the production of the film and when shown an email he had sent to the director, he falsely denied having sent it. Sapareto also denied traveling to California for the purpose of filming a movie that he intended to market and sell using the LLC, instead testifying that he went there for vacation and that he had loaned his camcorder to the director so that the director could film promotional videos. Finally, Sapareto falsely testified that the $5,100 in cash he withdrew was for personal expenses when in fact he used the money to pay expenses for the film. (FINRA Case #2018060379701)
Current and Previous Registrations
04/15/2019 – 05/05/2020 TRUSTMONT FINANCIAL GROUP, INC. (CRD#:18312) DERRY, NH
01/02/2019 – 01/15/2019 FORTUNE FINANCIAL SERVICES, INC. (CRD#:42150) MONACA, PA
02/16/2017 – 10/31/2018 ADVISORY GROUP EQUITY SERVICES LTD. (CRD#:15427) Westport, CT
03/05/2015 – 04/24/2017 SOURCE CAPITAL GROUP, INC. (CRD#:36719) WESTPORT, CT
12/01/2001 – 12/31/2014 SOURCE CAPITAL GROUP, INC. (CRD#:36719) WESTPORT, CT
11/02/1993 – 12/01/2001 MERIT CAPITAL ASSOCIATES, INC. (CRD#:30576) WESTPORT, CT
02/09/1993 – 09/10/1993 G.R. STUART & COMPANY, INC. (CRD#:29101) MAYNARD, MA
12/05/1992 – 02/26/1993 FINANCIAL SECURITIES NETWORK,INC. (CRD#:16153)
09/23/1992 – 10/30/1992 POLARIS FINANCIAL SERVICES, INC. (CRD#:14521) CONCORD, NH
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Frank Sapareto and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
