Securities Arbitration Lawyer Blog
FINRA has suspended FMN Capital broker Jeffrey Stanga from the securities industry for 12 months for failing to fully disclose the nature of his outside business activities and for participating in private securities transactions without providing the required written notice to or receiving written approval from his firm.
Stanga was also fined $10,000 and consented to disgorgement of $28,359, plus interest, which Stanga received in referral fees in connection with these private securities transactions.
If you have lost money with Jeffrey Stanga, or FMN Capital, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Letter of Acceptance, Waiver, and Consent (“AWC”)
Jeffrey Stanga and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on March 11, 2021, over the following findings:
- Between October 2014 and December 2017, Stanga failed to fully disclose the nature of his outside business activities.
- Between March 2015 and March 2017, Stanga also participated in private securities transactions without providing the required written notice to or receiving written approval from FMN Capital.
According to the AWC, the matter originated from an arbitration filed against Stanga by a non-firm customer in December 2017 alleging investment-related claims that pre-dated his association with a FINRA member.
Outside Business Activities
From February through June 2014, prior to his association with FMN Capital, Stanga sold a private placement offering of membership units in connection with a residential real estate flipping business. Stanga provided written notice of the said business to FMN Capital on his Form U4, describing his involvement as an “investor, gives advice/opinions on buying/fixing/selling residential homes.” However, he failed to fully disclose his role as “manager” and that the company was an investment-related business, as required by FINRA Rules.
Prior to his association with FMN Capital, Stanga sold promissory notes to investors in connection with a real estate brokerage firm. After registering with FMN Capital, and between March 2015 to March 2017, Stanga participated in eight private securities transactions totaling $1,160,000 by facilitating the renewals of the company’s promissory notes he sold to investors prior to his association with FMN Capital.
Stanga facilitated the promissory note renewals for four investors, one of whom was a firm customer, by acting as an intermediary between the company and the investors.
Stanga notified the investors of the opportunity to renew their promissory notes, negotiated interest rates, reviewed draft documents, and sent signed promissory notes to the company on the investors’ behalf.
In connection with these private securities transactions, Stanga received $28,359 in referral fees. Stanga did not obtain written permission from FMN Capital to participate in these private securities transactions and did not provide a detailed written notice to FMN Capital prior to participating in them.
Jeffrey Stanga (CRD#: 6387255)
Stanga has six years of experience in the securities industry and has been registered as a broker with FMN Capital Corporation in Mission Viejo, CA, since October 28, 2014. His FINRA CRD shows two customer disputes, including one award.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Jeffrey Stanga, or FMN Capital, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.