Jeffrey David Stanga of Mission Viejo California a stockbroker currently registered with FMN Capital Corporation has been fined $10,000.00 and suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he failed to make known to FMN Capital Corporation that he engaged in outside business activities and private securities transactions. Letter of Acceptance Waiver and Consent No. 2018057000401 (Mar. 11, 2021).
According to the AWC, prior to becoming a stockbroker and investment adviser representative of FMN Capital, Stanga initiated sales of private placements. These involved investors obtaining membership units of a company that was involved in the purchase and sale of real estate. The AWC states that when the stockbroker joined FMN Capital, he let the company know that he was only involved with the real estate company as an investor.
Stanga informed FMN Capital that he was providing opinions and advice as it pertained to real estate purchases and sales. But the securities broker dealer was not made aware that he was a manager for the real estate company and that the company itself was an investment-related business. Stanga violated FINRA Rules 2010 and 3270 in this respect.
FINRA also indicates that Stanga engaged in selling away activities. According to the AWC, he arranged for investors to purchase promissory notes that were issued by a second real estate brokerage company. Between March of 2015 and March of 2017, the stockbroker was involved in eight private securities transactions resulting in $1,160,000.00 worth of transactions. The AWC reveals that the transactions entailed four investors renewing promissory notes that had been sold to them before Stanga joined FMN Capital. One of the investors also maintained accounts at FMN Capital.
FINRA reports that the investors were made aware from Stanga that they had a chance to renew promissory notes. The stockbroker took part in reviewing the documents to make this happen. He also had a hand in negotiating the interest rates and had personally sent the executed promissory notes to the real estate brokerage company. Stanga neglected to get FMN Capital’s written permission before he took part in the promissory note transactions. He violated FINRA Rules 2010 and 3280 as well as National Association of Securities Dealers (NASD) Rule 3040.
FINRA Public Disclosure confirms that Stanga has been identified in two customer initiated investment related disputes regarding accusations of his improper conduct. Stanga is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer was awarded $75,000.00 in compensatory damages based on them being sold unsuitable direct participation program interests or limited partnership interests during the period that Stanga was associated with Scevro Finance Inc. FINRA Arbitration No. 17-03277 (Sept. 18, 2018).
Another customer initiated investment related civil action involving Stanga’s conduct was resolved for $46,000.00 in damages based upon allegations of unsuitable alternative investments being sold to the customer which caused them to experience damages. Civil Action No. CIVD1807004 (Dec. 28, 2018).
Stanga has been a stockbroker of FMN Capital Corporation since October 28, 2014 and an investment adviser representative of Financial Management Network Inc. since January 9, 2015.