Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » Investors File $1.2 Million FINRA Arbitration Claim Against Worden Capital For Churning

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John Sebastion Cangialosi Jr., of New York, New York, a stockbroker registered with Worden Capital Management LLC, is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer requested $1,281,156.00 in damages based upon allegations that Cangialosi churned the customer’s account, charged excessive commissions, made misrepresentations of material fact, was negligent, breached a contract, and committed fraud in connection with the sale of over-the-counter equities when Cangialosi was associated with Worden Capital Management LLC. Financial Industry Regulatory Authority (FINRA) Arbitration No. 22-00347 (March 21, 2022).

FINRA Public Disclosure shows that Cangialosi is referenced in seven other customer initiated investment related disputes concerning Cangialosi’s conduct while associated with securities broker dealers, including Legend Securities Inc. and Brookstone Securities Inc. On January 14, 2016, a FINRA securities arbitration claim involving Cangialosi’s conduct was settled for $50,000.00 in damages based upon allegations that Cangialosi breached a contract, committed fraud, breached his fiduciary duties, and was negligent when Cangialosi was associated with Legend Securities Inc. FINRA Arbitration No. 15-00292.

On May 26, 2016, a different FINRA securities arbitration claim involving Cangialosi’s conduct was settled for $9,999.00 in damages based upon allegations that Cangialosi committed fraud, breached a contract, churned the customer’s account, and made unsuitable recommendations and misrepresentations of material fact in connection with the sale of over-the-counter equities during the time that Cangialosi was associated with Brookstone Securities Inc. FINRA Arbitration No. 15-03051.

Cangialosi was also referenced in a FINRA securities arbitration claim that was settled for $30,000.00 in damages based upon allegations that Cangialosi made unsuitable recommendations, was negligent, breached his fiduciary duties, and breached a contract when Cangialosi was associated with Legend Securities Inc. FINRA Arbitration No. 17-03396 (November 24, 2018).

FINRA Public Disclosure shows that Cangialosi has been fined $7,500.00 and suspended for nine months from associating with any FINRA member in any capacity because Cangialosi made unsuitable recommendations. Letter of Acceptance, Waiver, and Consent No. 2017056432605 (August 12, 2021).

According to the AWC, Cangialosi excessively traded three customer accounts from October 2014 through December 2018. For example, in one customer’s account, Cangialosi executed 90 transactions from October 2014 to October 2016 resulting in an annualized cost-to-equity ratio of 58.38 percent and an annualized turnover rate of 13.7. The customer incurred trading costs of $173,337.00 and $169,342.00 in commissions. FINRA states that the customer experienced $279,803.00 in realized losses.

The AWC states that the customers collectively realized losses of $405,255.00. Therefore, Cangialosi violated FINRA Rules 2010 and 2111.

Cangialosi has also been sanctioned by Maryland Division of Securities based upon allegations that Cangialosi engaged in excessive and unsuitable trading. Maryland Enforcement Action No. 20210361 (September 23, 2021).

Cangialosi was associated with SW Financial in New York, NY, as a stockbroker from December of 2019 to August of 2022, and was associated with Worden Capital Management LLC in New York, NY, as a stockbroker from November of 2016 to December of 2019.