John Sebastion Cangialosi of New York New York a stockbroker registered with Worden Capital Management and SW Financial is under a Financial Industry Regulatory Authority (FINRA) investigation in which Cangialosi may face disciplinary action for allegedly making unsuitable recommendations to customers. Case No. 20170564326 (Sept. 15, 2020).
According to FINRA Public Disclosure, FINRA recommended for Cangialosi to face disciplinary action given accusations that he made an unsuitable investment recommendation to a customer. FINRA believes that Cangialosi may have violated Rules 2010 and 2111 for this reason.
FINRA Public Disclosure also shows that Cangialosi may face disciplinary action for alleged churning. The regulator believes that Cangialosi may have churned customer accounts in violation of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and FINRA Rules 2010 and 2020.
Cangialosi has been identified in seven customer initiated investment related disputes regarding allegations of his misconduct during the period that he was registered with securities broker dealers including Legend Securities and JP Turner Company. He is the subject of a customer initiated investment related FINRA securities arbitration claim which was settled for $67,832.50 in damages founded on accusations that unauthorized trades were effected in the customer’s JP Turner Company account.
Cangialosi is also referenced in a customer initiated investment related written complaint where the customer sought $37,243.00 in damages supported by allegations of the stockbroker making unauthorized trades in the customer’s account and charging excessive commissions. Another customer filed an investment related complaint involving Cangialosi’s conduct in which the customer requested compensatory damages based upon accusations of unsuitable trading by Cangialosi when he was associated with Brookstone Securities.
On August 11, 2015, another customer filed an investment related complaint regarding Cangialosi’s conduct where the customer sought $38,000.00 in damages founded on allegations that their account value had been overstated and that they were not provided funds in a timely matter.
On January 14, 2016, a different customer initiated investment related FINRA securities arbitration claim regarding Cangialosi’s conduct was resolved for $50,000.00 in damages supported by accusations that Cangialosi breached a fiduciary duty to the customer in reference to over-the-counter equities. According to the claim, the customer had been defrauded, and a contract between the customer and the securities broker dealer had been breached.
Cangialosi is also the subject of a customer initiated investment related FINRA securities arbitration claim which was settled for $9,999.00 in damages on May 26, 2016 based upon allegations that Cangialosi made misrepresentations regarding stock and over-the-counter equities transactions. The claim alleges that the customer’s account was churned and that they sustained damages from negligent and fraudulent actions. According to the claim, there was a breach of contract.
On November 24, 2018, another customer initiated investment related FINRA securities arbitration claim pertaining to Cangialosi’s conduct was resolved for $30,000.00 in damages founded on accusations of a breach of contract and breach of fiduciary duty as it pertained to Cangialosi’s stock trades at Legend Securities. FINRA Arbitration No. 17-03396. According to the clam, the stockbroker made unsuitable and unauthorized stock trades. The claim also alleges that Cangialosi churned the customer’s account resulting in damages.
Cangialosi’s registration with Worden Capital Management ended on December 10, 2019. He has been registered with SW Financial since December 10, 2019.
