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Financial advisor Michael Fasciglione customer complaints

INVESTOR ALERT—Aegis Capital Corp. Financial Advisor, Michael Fasciglione, Has Thirteen Customer Complaints, And Two Regulatory Disclosures

Michael Fasciglione is a Financial Advisor at Aegis Capital in its Bayside, NY branch office.  Michael Fasciglione has been in the securities industry since 1988 and previously worked at National Securities Corp.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Paul Falcon has thirteen (13) customer complaints disclosed on his CRD, including three pending complaints, alleging sales practice violations.  Among the customer complaints include the following:

  • December 2018—”TIME FRAME: UNSPECIFIED. SUITABILITY AND BREACH OF FIDUCIARY DUTY.”  Alleged damages are $467,000 and the matter remains pending.
  • November 2018—Client alleges that investment recommendations were unsuitable.  Alleged damages are $12,703 and the matter remains pending.
  • May 2017—Client alleges “UNSUITABILITY, BREACH OF FIDUCIARY DUTY, NEGLIGENCE.”  Alleged damages are $432,020 and the matter remains pending.
  • May 2014—”SUITABILITY, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY, NEGLIGENCE.”  The matter was settled for $525,000. 
  • April 2009—”FRAUD, BREACH OF CONTRACT, EXCESSIVE TRADING, UNSUITABILITY, AND NEGLIGENCE.”  The matter was settled for $150,000. 
  • May 2002—”CLIENT ALLEGES MISREPRESENTATION, UNAUTHORIZED TRADING, FAILURE TO SUPERVISE AND SUITABILITY.”  The matter went to a final hearing and the customer was awarded $300,000.

In addition to the customer complaint disclosures, Michael Fasciglione has been the subject of two regulatory sanctions during his career.  The first regulatory event occurred in 2004 when the New York Stock Exchange sanctioned Michael Fasciglione for “failing to supervise activities of registered representative” and other alleged violations.  The second regulatory event occurred in 2014, when Michael Fasciglione was suspended for one month and fined for allegedly failing to “TIMELY AMEND HIS FORM U4 TO DISCLOSE ONE INTERNAL REVENUE SERVICE (IRS) TAX LIEN FILED AGAINST HIM.”

For a copy of the Michael Fasciglione’s CRD, click https://brokercheck.finra.org/individual/summary/1806486#disclosuresSection

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, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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.

Did You Buy Shares Of GPB Capital Holdings Through Aegis Capital, National Securities Corp. Or Michael Fasciglione?

Michael Fasciglione is a Financial Advisor at Aegis Capital Corp. in Bayside, NY.  Michael Fasciglione entered the securities industry in 1988 and previously worked at National Securities Corp. and First Montauk Securities Corp.

The Wolper Law Firm, P.A. has been contacted by customers of Michael Fasciglione, who were sold risky private placements issued by GPB Capital Holdings, LP while he was registered with National Securities Corp. and Aegis Capital Corp.  The customers alleged that the GPB Capital Holdings private placements were low risk and would generate safe and stable investment returns.  Virtually no risk disclosures were made and no disclosure was made regarding the high commissions of 8% earned by brokers who sold GPB. 

The Wolper Law Firm, P.A. is currently representing other investors in GPB Capital Holdings who have experienced investment losses. 

GPB Has reportedly raised $1.8 billion from investors across the country through private placement investments in a number of individual limited partnerships, including: 

-GPB Automotive Portfolio, LP
-GPB Cold Storage, LP
-GPB Eurobond Finance PLC
-GPB Holdings II, LP
-GPB Holdings, III, LP
-GPB Holdings Qualified, LP
-GPB Holdings, LP
-GPB NYC Development
-GPB Scientific, LLC
-GPB Waste Management, LP formerly: GPB Waste Management Fund, LP.

Over the last several months, the GPB family of funds have precipitously declined, leaving investors with large losses.  Some of the GPB funds have reported declines of 40%. 

Several disturbing revelations have recently surfaced.  In a lawsuit filed by a former GPB operating partner, it was alleged that GPB was operating a ponzi scheme.   Specifically, in July 2017, GPB Capital Holdings, LLC (“GPB”) initiated a litigation against Patrick Dibre, a former operating partner, in New York State Supreme Court, Nassau County, Index No. 606417/2017 (the, “Dibre Case”).  On March 19, 2018, Mr. Dibre filed counterclaims against GPB in the Dibre Case. Mr. Dibre’s allegations, which include allegations against GPB Capital Holdings, LLC’s controllers, David Gentile (“Gentile”) and Jeffrey Schneider (“Schneider”), alege the following:

Contrary to GPB’s stated purpose in bringing the instant action against Dibre, the true purpose of this action by GPB is to divert attention away from the fact that the losses occasioned by GPB were in fact caused by a very complicated and manipulative Ponzi scheme.

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Gentile also engaged his father’s accounting firm to perform monthly services that were either never performed or which were overbilled in the approximate amount of $100,000 per month.  The performance of those alleged services by a related party was not disclosed to investors at that time.

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Gentile and Schneider also expensed significant personal expenses such as luxury cars, vacations, and private jets to GPB or dealerships. One of those expenses totaled $550,000 for use of an airplane for the month of August 2017.

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Gentile and Schneider recorded the purchase price of the dealerships that they purchased from Dibre at several million dollars more than the combined actual purchase price, closing expenses, and working capital investment. They then directed those additional monies back to themselves, or entities in which they held in interest, as acquisition fees.

In addition, in July 2019, David Rosenberg, a chief executive of Prime Automotive Group, filed another lawsuit against GPB in Massachusetts Superior Court, alleging a “massive securities fraud” in which it used money from investors to prop up the performance of auto dealerships it owns, as well as to finance payments to other investors. 

Separate and apart from the lawsuits, there are pending governmental and regulatory investigations: 

  • In September 2018, the Massachusetts Secretary of the Commonwealth announced that it was launching an investigation into the 63 securities broker-dealer firms that sold partnerships controlled by GPB.
  • In December 2018 it was reported that the Securities and Exchange Commission as well as the Financial Industry Regulatory Authority, or FINRA, launched investigations into GPB.
  • On February 28, 2019, the FBI made an “unannounced visit” to GPB’s office in New York. Following the visit, a spokesperson for GPB announced that the firm was cooperating with the investigation.

Michael Fasciglione has a history of customer complaints and regulatory disclosures.  According to publicly available documents published by the Financial Industry Regulatory Authority (FINRA), in 2004 and again, in 2014, Michael Fasciglione was sanctioned for sales practice misconduct.  In 2004, the New York Stock Exchange Division of Enforcement found that, among other things:  “FASCIGLIONE: 1. VIOLATED EXCHANGE RULE 342.16 BY FAILING TO DISCHARGE HIS DUTIES AND OBLIGATIONS IN CONNECTION WITH THE SUPERVISION AND CONTROL OF THE ACTIVITIES OF AN EMPLOYEE RELATED TO THE BUSINESS OF HIS EMPLOYER; 2. VIOLATED EXCHANGE RULE 405(2) BY FAILING TO DISCHARGE HIS DUTIES AND OBLIGATIONS IN CONNECTION WITH THE SUPERVISION OF ACCOUNTS SERVICED BY A REGISTERED REPRESENTATIVE UNDER HIS CONTROL; 3. CAUSED VIOLATIONS OF EXCHANGE RULE 410(A) IN THAT HE FAILED TO ENSURE THAT ACCOUNT DESIGNATION CHANGES TO ORDERS IN TWO CUSTOMER ACCOUNTS WERE AUTHORIZED BY A DULY QUALIFIED INDIVIDUAL WHO WAS PERSONALLY INFORMED OF THE ESSENTIAL FACTS RELATIVE THERETO; 4. VIOLATED EXCHANGE RULE 352(C), IN THAT HE CAUSED REIMBURSEMENT OF LOSSES IN TWO CUSTOMER ACCOUNTS; AND 5. CAUSED A VIOLATION OF EXCHANGE RULE 351(D) IN THAT HE FAILED TO NOTIFY HIS MEMBER FIRM EMPLOYER OF THE COMPLAINT OF A CUSTOMER OF HIS MEMBER FIRM EMPLOYER. PENALTY: CENSURE, TWO MONTH PLENARY BAR, AND AN UNDERTAKING TO RETAKE QUALIFYING EXAMS BEFORE UNDERTAKING ANY SECURITIES SUPERVISORY POSITION IN THE FUTURE.” 

In 2014, FINRA suspended him for one month for failing to “timely amend his Form U4 to disclose one internal revenue service (IRS) tax lien filed against him.”   A copy of the sanction can be accessed by clicking https://www.finra.org/sites/default/files/fda_documents/2012034246201_FDA_UM878423.pdf.

In addition, Michael Fasciglione has had thirteen customer complaints filed against him during his career, alleging sales practice misconduct.  Among the complaints include the following:

  • December 2018—”TIME FRAME: UNSPECIFIED. SUITABILITY AND BREACH OF FIDUCIARY DUTY.”  Alleged damages are $467,000 and the matter remains pending. 
  • November 2018—Customer alleged “suitability.”  Alleged damages are $12,703 and the matter remains pending. 
  • March 2018—Customer alleges “misrepresentation.”  The matter was settled for $15,000.
  • May 2017—”UNSUITABILITY, BREACH OF FIDUCIARY DUTY, NEGLIGENCE.”  The matter was settled for $135,000.
  • May 2014—”SUITABILITY, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY, NEGLIGENCE.”   The matter was settled for $525,000.
  • May 2012—” SUITABILITY, CHURNING.”  The matter was settled for $80,000. 

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, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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]