Joseph Anthony Giordano, former Registered Principal of Capital Investment Group, Inc. (CIG) of Annapolis, Maryland and more recently with Meyers Associates, L.P. of Edgewater, Maryland, submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) sanctions and findings for the distribution and solicitation of unregistered Empire debentures, the solicitation of which was prohibited by CIG, and for making unsuitable recommendations to his customers.
According to FINRA, Mr. Giordano, of Grasonville, Maryland, participated in the distribution of unregistered Empire Corporation (Empire) debentures, which is a violation of Section 5 of the Securities Act of 1933. FINRA’s findings alleged that Mr. Giordano sold nearly $3.1 million worth of Empire debentures to at least 45 CIG investors. Mr. Giordano failed to conduct adequate due diligence in regards to the fact that these debentures were not registered with the U.S. Securities and Exchange Commission or the State of Maryland nor did they qualify for a registration exemption.
Additionally, FINRA found that Mr. Giordano made unsuitable recommendations to his customers based on their investment goals, objectives, financial profiles and risk tolerance, advising them to purchase the debentures in their retirement accounts and at unsuitable concentrations and even allegedly going so far as to advise at least one investor that the debenture was “safe” and that “the issuer will have no problem paying back the principal plus interest.” The Empire debentures were risky investments due to their high-yield, lack of credit analyses or registration statement, and total absence of a secondary market. Mr. Giordano allegedly made false statements to CIG regarding the prohibited solicitation of these debentures, allegedly telling the firm that he was not receiving compensation, when in one year he received $63,900 in compensation for his sales of the Empire debentures. Consequently, Joseph Giordano was barred by FINRA from association with FINRA members in any capacity.
Have you suffered losses in an Empire debenture investment? Have you suffered losses in your Capital Investment Group or any other brokerage account due to unsuitable recommendations, misrepresentations and/or omissions by your broker? Was Joseph Giordano your financial advisor? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Capital Investment Group stockbrokers who may have engaged in broker misconduct and caused investment losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.