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Former Financial Adviser Anthony Cottone Barred by SEC And FINRA After Allegations of Misrepresentation Leading to Investment Loss

Anthony Cottone (CRD#: 4394861) is a previously registered Broker and previously registered Investment Advisor.

Broker’s Background

He entered the securities industry in 2001 and previously worked for Landolt Securities, Inc.; Financial West Group; MidAmerica Financial Securities, Inc.; AXA Advisors, LLC; Newbridge Securities Corp.; Independent Securities Investors Corp.; Gunnallen Financial, Inc.; Morgan Stanley DW Inc.; and UBS PaineWebber.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records, in January 2022, the United States Securities and Exchange Commission permanently barred Anthony Cottone from association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO or participating in any offering of a penny stock, effective January 24, 2022. The allegation states, “The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Anthony M. Cottone. The Commission finds that on January 12, 2022, a judgment was entered by consent against Cottone, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (“Securities Act”), Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1), 206(2), 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, in the civil action entitled Securities and Exchange Commission v. Anthony M. Cottone, et al., Civil Action Number 22-cv-80048, in the United States District Court for the Southern District of Florida. The Commission’s complaint alleged that, from March 23, 2017 to July 31, 2017, Cottone and his now defunct unregistered investment adviser raised approximately $2.76 million from 11 investors in connection with the sale of preferred interests in a private fund through false and misleading representations and material omissions regarding the fund’s use of investor proceeds, undisclosed conflicts of interest, and Cottone’s background. The complaint also alleged that Cottone misused and misappropriated the fund’s assets. In addition, the complaint alleged that Cottone sold securities in unregistered transactions and acted as an unregistered broker.”

In addition, Anthony Cottone has been the subject other employment, regulatory and customer complaint disclosures, including the following:

  • July 2020 — “fail to supervise RR, overconcentration in private placements.” The customer dispute was settled for $150,000.
  • September 2018 — “Respondent Anthony Cottone failed to respond to FINRA request for information.” FINRA barred Anthony Cottone from registration in all capacities indefinitely, beginning December 10, 2018.
  • December 2017 — “Making a material misstatement on the application for registration.” Regulatory action initiated by the Florida Office of Financial Regulation is pending.
  • January 2017 — “Individual did not disclose material information on his U4.” Anthony Cottone was discharged by WealthForge Securities.
  • February 2010 — “RR WAS PERMITTED TO RESIGN WHILE UNDER INVESTIGATION IN CONNECTION WITH UNAPPROVED ADVERTISING AND SALES PRACTICE VIOLATIONS.” Anthony Cottone was permitted to resign from AXA Advisors, LLC.

For a copy of Anthony Cottone’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Alternative investments are not regulated by the U.S. Securities and Exchange Commission (SEC), and are often subject to fraud and other schemes. Examples include commodities, hedge funds, real estate, derivatives contracts, private equity, managed futures, and venture capital. They are not typically regulated by the SEC, nor are they usually liquid or easy to value, which makes them risky investments. In addition, alternative investments are often open only to accredited investors with an income of $200,000 or more or a net worth in excess of $1M; they also require high up-front minimums. When these opportunities are opened to non-accredited investors, it may be because of unsuitability, fraud, selling away or misrepresentation, and the investor may incur losses.

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the financial advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]