Anthony Paul Lombardi, of Carlsbad, California, a stockbroker formerly registered with Capital Financial Services, was fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2014042740201 (Oct. 24, 2016).
According to the AWC, in August of 2013, during which point Lombardi was associated with Capital Financial Services, he did not disclose to his firm that he was working as the sole officer and shareholder of the Lombardi Group, an entity which Lombardi had created in 2012. Apparently, through The Lombardi Group, Lombardi was responsible for operating an insurance based business, in which he received compensation associated with insurance product sales.
The AWC stated that Capital Financial Services called for stockbrokers such as Lombardi to make the requisite written disclosures concerning outside business activities to the firm prior to engaging in them. Apparently, Lombardi never provided his firm with the appropriate disclosures in this regard. As such, FINRA found that Lombardi’s conduct was violative of FINRA Rule 2010 and 3270.
FINRA Public Disclosure reveals that Lombardi has been subject to six incidents. Particularly on November 23, 1999, Lombardi settled a customer initiated investment related arbitration claim for $300,000.00 in damages based upon allegations against Lombardi of effecting stock transactions in the customer’s account which were unsuitable.
On September 8, 2014, Lombardi settled another customer initiated investment related arbitration action for $250,000.00 in damages based upon allegations that Lombardi breached his contractual and fiduciary duties to the customer, made misrepresentations and omissions concerning investments, sold unqualified securities, and committed fraud.
Lombardi has been named in a pending customer initiated investment related arbitration claim on April 29, 2015, in which the customer has requested $150,000.00 in damages based upon allegations against Lombardi which include fraud, conversion, misrepresentation, elder abuse, and fraudulent concealment.
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