Broker John Canialosi Jr. Finally Barred from Industry After Long History of Misconduct
At Meyer Wilson, championing investor rights and ensuring fairness in the financial markets is our top priority. The recent case of John Cangialosi Jr. is proving to be a perfect example of why investors need to remain vigilant. Our firm sheds light on the significance of broker accountability and the severe repercussions of failing to adhere to regulations.
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Understanding the Consequences for Investors
Recent developments highlight a notable instance demonstrating the severe effects of unsuitable trading practices on investors. John Sebastion Cangialosi Jr., once a registered stockbroker with SW Financial in New York, NY, faced a permanent ban from any association with members of the Financial Industry Regulatory Authority (FINRA) after refusing to cooperate with an inquiry on his suspected external business activities. By failing to deliver testimony twice, Cangialosi violated FINRA Rules 2010 and 8210.
John Cangialosi Jr.’s Excessive Trading and Its Impact
- Cangialosi’s record includes a nine-month suspension and a $7,500 fine by FINRA for excessive trading in customer accounts.
- While associated with Salomon Whitney LLC, his high-frequency trade recommendations and executions led to significant customer losses, totaling $405,255.00, with trading costs of $311,229.00.
- Such practices, resulting in high turnover rates and cost-to-equity ratios, breached FINRA Rules 2111 and 2010, which govern suitable trading.
The Ripple Effect of Broker Misconduct
Cangialosi’s conduct has led to several customer-initiated investment disputes, accusing him of negligence, fraud, breach of contract, churning, and making unsuitable recommendations. These allegations highlight the detrimental effect brokers can have when they prioritize their earnings over their clients’ financial well-being.
Customers have claimed damages in the substantial range – from hundreds of thousands to over a million dollars – due to unsuitable, unauthorized, and excessive trading, underscoring the imperative for strict supervision from securities broker-dealers.
Our lawyers are nationwide leaders in investment fraud cases.
How Meyer Wilson Can Help
Meyer Wilson is dedicated to holding financial professionals to account, protecting investor interests. If you’ve been impacted by unsuitable or unauthorized trading practices, or have concerns about your investment handling, our expert team is here to offer guidance and representation. Experienced in addressing losses due to broker misconduct, we’re your partners in seeking justice.
For a consultation, please contact us at 866-938-2021 or visit our website at investorclaims.com.
Article by: Courtney Werning, Esq.
Recovering Losses Caused by Investment Misconduct.