Financial Advisor Angelo Julius Piccone Suspended by FINRA

• February 4, 2025
• IBN Financial Services

Angelo Julius Piccone (CRD#: 1401761) is a previously registered broker and investment advisor.

Broker’s History

He entered the securities industry in 1985 and previously worked with Mony Securities Corp; Equity Services, Inc.; Berkshire Equity Sales, Inc.; Hornor, Townsend & Kent, Inc.; Lifemark Securities Corp.; Nathan & Lewis Securities, Inc.; Securities America, Inc.; Metropolitan Life Insurance Company; Metlife Securities Inc.; Next Financial Group, Inc.; Ensemble Financial Services, Inc.; and IBN Financial Services, Inc.

Allegations of Misconduct

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in January of 2025, without admitting or denying the findings, Piccone consented to the sanctions and to the entry of findings that he willfully violated Reg BI by recommending 11 sales of speculative, illiquid alternative investments totaling $457,000 to a retail customer. The finding stated that the customer had a moderate risk tolerance, an annual income of no more than $25,000, and a net worth, not including primary residence, of $587,438. The customer’s investment objectives were preservation of capital, current income, and funding retirement, and they did not include speculation. Piccone earned $23,905.81 in commission in connection with his recommendations of these alternative investments to the customer.

As a result of Piccone’s recommendations, the customer became 77% concentrated in alternative investments, including a 15% concentration in speculative bonds. Piccone’s recommendations were not in the customer’s best interest based on her investment profile, including her moderate risk tolerance. The findings also stated that Piccone used his personal mobile device to exchange text messages with the customer to conduct securities business. In one of those communications, Piccone made an unbalanced, promissory and misleading statement to the customer regarding the prospects for recovery related to one of her investments. Because Piccone used an unapproved channel for business-related communications, the firm was unable to preserve those communications as required.

Respondent also consents to the imposition of the following sanctions:
• a five-month suspension from associating with any FINRA member in all capacities;
• a $10,000 fine; and
• disgorgement of $23,905.81 plus interest.

For a copy of the FINRA Disciplinary Action Details, click here.

In addition, Angelo Piccone has also been the subject of four other FINRA disclosures:
• February 2023—“ Product was not suitable for client’s risk profile.” The damage amount requested was $90,000 and the customer dispute settled for $63,000.
• July 2018—“ Claimant alleges negligence, breach of contract and fiduciary duty, misrepresentation, and failure to supervise in the sales of United Development Funding (UDF) III, UDF IV and Behringer Harvard REIT I.” The Customer dispute settled for $20,000.
• May 2017—“ Sales of oil & gas partnership and REITS, specifically UDF IV were unsuitable. with incomplete disclosure and with insufficient due diligence.” The customer dispute settled for $20,000.
• February 2012— “Civil Judgment/Lien $13,460.66.”

For a copy of Angelo Piccone’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment 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.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. 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.