Anthony Joseph Cantone of Eatontown New Jersey a stockbroker and Chief Executive Officer of Cantone Research is the subject of a Financial Industry Regulatory Authority (FINRA) investigation into allegations that Cantone omitted and misrepresented information about municipal bonds and had committed securities fraud. Case No. 2017055886402 (Oct. 29, 2020).
According to FINRA Public Disclosure, Cantone might face disciplinary action from FINRA Department of Enforcement founded on accusations of Cantone’s omissions, misrepresentation and fraud in regard to Montgomery 2015 Municipal Bonds. FINRA indicated that Cantone’s conduct is possibly violative of Securities Exchange Act of 1934 Section 10(b), Securities and Exchange Commission (SEC) Rule 10b-5 and MSRB Rule G-17.
FNIRA stated that Cantone should also face disciplinary action for his role in possibly omitting or misrepresenting Quad Cities Municipal Revenue Bonds in violation of MSRB Rule G-17. The regulator additionally mentioned that Cantone’s investment recommendations were possibly not suitable for customers as it pertained to to Quad Cities Municipal Revenue Bonds and the violation of MSRB Rules G-17 and G-19 for Unsuitable advice.
FINRA Public Disclosure reveals that Cantone has been sanctioned at least three times for misconduct in the securities industry. He was fined $150,000.00 and suspended by FINRA for one year according to a National Adjudicatory Decision which indicated that Cantone had committed omissions and misrepresentations pertaining to the sale of certificates of participation issued by a real estate developer as part of private placement offerings.
According to the Decision, Cantone helped raise $8,000,000.00 in certificates of participation which brought in at least $1,000,000.00 in compensation including commissions and fees. Investors were not told critical details about a real estate developer having a troublesome financial state and making late payments of both principal and interest in prior offerings. FINRA determined that Cantone’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), Rule 10b-5 and FINRA Rules 2010 and 2020. He was also made jointly responsible for paying a $50,000.00 fine relating to his violations of Securities Act of 1933 Section 17(a)(2) and (3) and FINRA Rule 2010.
FINRA Public Disclosure confirms that Cantone has been identified in four customer initiated investment related disputes containing allegations of his damaging actions while associated with Cantone Research. Cantone is the subject of a customer initiated investment related arbitration claim which was resolved for $800,000.00 in damages based upon accusations that a fiduciary duty that was owed to the customer had been breached and that the customer sustained losses due to Cantone.
On February 14, 2019, another customer initiated investment related complaint involving Cantone’s activities was settled for $42,500.00 in damages founded on allegations that a certificate of participation in a third party promissory note defaulted causing the customer to experience losses.
Cantone has been a stockbroker of Cantone Research since February 13, 1995 and an investment adviser representative of the firm since February 17, 2004.