Vito James Balsamo (CRD# 2084901) is a former registered broker with National Securities Corporation in New York City. According to a complaint filed against Balsamo by FINRA’s Department of Enforcement, from June 21, 2010 through September 15, 2010, Balsamo solicited securities to three investors, all of whom were Balsamo’s clients at National Securities Corporation. These securities involved ownership interests in V.W. Industries, LLC.
According to FINRA, these securities offerings in V.W. Industries were outside the scope of National Securities Corporation business. FINRA also alleged in the complaint that V.W. Industries incentivized Balsamo to sell interests in this company by promising him ownership interests for doing so. Overall, Balsamo was allegedly able to secure approximately $475,000 from the three investors without the approval from his firm.
“ Selling away” means that a broker is selling or offering securities that are not offered or approved by the brokerage firm he or she is affiliated with. Brokerage firms put a lot of effort into carefully researching and approving the investment products they allow their brokers to offer to their clients, and a broker who engages in “selling away” is acting inappropriately.
Although the firm may be unaware that one of its brokers is offering these outside investments, brokerage firms do have a basic duty to supervise the actions of their employees. In a case of “selling away,” it may be possible to also hold the brokerage firm responsible for the losses sustained by victims of stockbroker misconduct or fraud because of a failure to supervise.
Did you invest in V.W. Industries, LLC at the recommendation of Vito Balsamo? We invite you to contact a securities fraud lawyer at Meyer Wilson today for a free review of your case. Get in touch with us today to tell us what happened.