FINRA recently initiated disciplinary proceedings against former broker Vito J. Balsamo (CRD# 2084901). In response, Balsamo submitted an Offer of Settlement. This week, FINRA accepted Balsamo’s offer and filed an Order Accepting Offer of Settlement.
Back in April, we reported that FINRA had filed a complaint against Balsamo accusing him of misconduct for activities occurring from June 21, 2010 through September 15, 2010. Balsamo allegedly solicited the sale of ownership interests in V.W. Industries, LLC to three investors, all of whom were Balsamo’s clients at National Securities Corporation. Those investments were outside the scope of regular NSC business activity and unapproved by the firm. FINRA also accused Balsamo of accepting V.W. Industries incentives to sell interests in the company so he could get ownership interests.
Balsamo’s Offer of Settlement means that he consents to FINRA’s findings without admitting or denying the allegations against him. The misconduct of which FINRA accused Balsamo can be described as “selling away.” This term encompasses all types of securities sales and offerings that are not affiliated with a broker’s managing firm and have not been approved by the managing firm. In cases where a broker or financial advisor is accused of selling away, investors may be able to hold that broker’s managing firm responsible for failing to properly supervise their employees.
If you invested in V.W. Industries at Vito Balsamo’s recommendation and lost money, we invite you to contact a securities fraud lawyer at Meyer Wilson today for a free case review.