Jeffrey David Stanga of Mission Viejo, California, a stockbroker registered with FMN Capital Corporation, has been fined $10,000.00 and suspended for 12 months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Stanga engaged in private securities transactions and engaged in an undisclosed outside business activity. Letter of Acceptance, Waiver, and Consent No. 2018057000401 (March 11, 2021).
According to the AWC, between February of 2014 and June 2014, before Stanga joined FMN Capital, he engaged in the sale of membership units associated with Company A, a business involved in the residential real estate flipping market. While Stanga did inform FMN Capital about Company A via his Form U4 and characterized his association as one of providing certain insights on residential property transactions, he did not transparently declare his managerial role in the company, or that it was a venture related to investments. Therefore, he violated FINRA Rules 2010 and 3270.
Additionally, before his affiliation with FMN Capital, Stanga offered promissory notes related to a real estate brokerage firm known as Company B. Subsequent to becoming a part of FMN Capital, from March of 2015 to March of 2017, he facilitated transactions for the renewal of these notes from Company B, amassing to $1,160,000.00. In these transactions, Stanga acted as a bridge between Company B and the investors, guiding individuals in the renewal process of their notes. During this, he played various roles: informing the investors, overseeing the draft documents, arbitrating interest rates, and forwarding the finalized promissory notes to Company B. From these transactions, Stanga earned referral fees totaling $28,359.00. However, he neglected to furnish FMN Capital with notice about these transactions and didn’t get the securities broker dealer’s formal consent to partake in them. Therefore, he violated FINRA Rule 3280 and 2010 as well as NASD Rule 3040.
FINRA Public Disclosure shows that Stanga was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $75,000.00 in damages based upon allegations that Stanga made unsuitable recommendations of direct investments when Stanga was associated with Scevro Finance Inc. FINRA Arbitration No. 17-03277 (October 25, 2018).
On December 28, 2018, a customer initiated investment related civil action involving Stanga’s conduct was settled for $46,000.00 in damages based upon alleged unsuitable advice about direct investments during the time that Stanga was associated with Scevro Finance Inc. Civil Action No. CIVD1807004.
Stanga was discharged by FMN Capital Corporation on April 5, 2021, based upon allegations that Stanga engaged in an undisclosed outside business activity.
Stanga has been associated with FMN Capital Corporation as a stockbroker since October 28, 2014, and associated with Financial Management Network Inc. as an investment advisor representative since January 9, 2015.
