Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Salvatore Pizzimenti from the securities industry. Mr. Pizzimenti was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation related to improper trading in customer accounts while associated with Worden Capital Management LLC in New York.
According to a 2017 investigation by Reuters, Worden Capital Management hired more brokers with a history of significant disclosures than all but twenty-three other firms in the country. In 2021, Iorio Altamirano LLP set out to update that analysis.
The investigation revealed that fifty-four percent (54%) of Worden Capital Management’s brokers and supervisors have significant “red flag” public disclosures. Significant red flag disclosures include:
- regulatory sanctions,
- terminations of employment after allegations of misconduct,
- customer disputes that result in an award or settlement, and
- prior association with a firm that FINRA has expelled.
You can read the full investigative report here: Investigative Report: Worden Capital Management LLC’s Owners, Executives, and Brokers Have Concerning Red Flag Disclosures
If you have suffered financial losses investing with Salvatore Pizzimenti or Worden Capital Management, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.
Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Worden Capital Management.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019060753501
Salvatore Pizzimenti and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on June 11, 2021, after Mr. Pizzimenti refused to provide on-the-record testimony connected with FINRA’s investigation. The investigation concerned Mr. Pizzimenti’s trading of customer accounts while he was associated with Worden Capital Management.
On May 26, 2021, in connection with FINRA’s investigation, FINRA sent a request to Mr. Pizzimenti for on-the-record testimony pursuant to FINRA Rule 8210. On May 26, 2021, Mr. Pizzimenti, through counsel, stated on a phone call that he would not appear for on-the-record testimony at any time.
By refusing to testify, Mr. Pizzimenti violated FINRA Rules 8210 and 2010.
Financial Advisor Salvatore Pizzimenti (CRD No. 2879580)
Salvatore Pizzimenti had 15 years of experience in the securities industry and has been associated with seven different firms, including two firms that have been expelled by FINRA:
- Worden Capital Management, from November 2016 to December 2019.
- Legend Securities, Inc. (expelled by FINRA), from August 2011 to November 2016.
- P. Turner & Company, L.L.C., from February 2010 to August 2011.
- National Securities Corporation, from January 2009 to February 2010.
- Pointe Capital, Inc., from January 2007 to January 2009.
- Great Eastern Securities, Inc., from September 2005 to January 2007.
- Salomon Grey Financial Corporation (expelled by FINRA), from November 2004 to September 2005.
According to his BrokerCheck report, Mr. Pizzimenti has been the subject of at least five customer complaints, including a pending dispute. The pending dispute was filed in January 2021 by a customer alleging that Mr. Pizzimenti, while associated with Worden Capital Management, caused nearly $90,000 in damages. The customer filed a securities arbitration complaint, which included the following causes of action: churning and quantitative suitability, and misrepresentation, and unsuitability.
Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.
Churning is a more egregious variation of excessive trading. Churning refers to a situation where the broker executed an excessive number of trades and did so with the intent to defraud or reckless disregard for the customer’s interest. Churning is unethical and illegal and can cause enormous harm to customers.
Three of the other four customer disputes also involved allegations of churning. All four of the other disputes have been resolved by settlement:
- Customer Dispute (January 2013): A customer filed a securities arbitration complaint alleging $500,000 in damages as a result of churning and unsuitable recommendations. The dispute was settled by Mr. Pizzimenti.
- Customer Dispute (August 2012): A customer filed a securities arbitration complaint alleging $1 million in damages. The complaint alleged negligence, churning, unsuitability, fraud, breach of contract, and breach of fiduciary duty. The dispute was settled by J.P. Turner & Company and Mr. Pizzimenti for $240,000. Mr. Pizzimenti contributed $120,000.
- Customer Dispute (July 2012): A customer filed a securities arbitration complaint alleging $4 million in damages. The complaint alleged negligence, breach of fiduciary duty, breach of contract, misrepresentation, and unsuitable and excessive trading. The dispute was settled by National Securities Corporation and Mr. Pizzimenti for $70,000.
- Customer Dispute (April 2008): A customer filed a securities arbitration complaint alleging that Mr. Pizzimenti failed to follow instructions related to the recommendation and purchase of technology stocks. The dispute was settled for $130,000 by Mr. Pizzimenti.
Supervisory Duties
Brokerage firms like Worden Capital Management must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as churning, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have lost money with financial advisor Salvatore Pizzimenti or Worden Capital Management, LLC, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@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. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.