Mark David Martino of White Plains, New York, a stockbroker formerly registered with Ascendant Alternative Strategies LLC, has been fined $5,000.00 and suspended for twenty days from associating with any FINRA member in any capacity based upon allegations that Martino failed to conduct due diligence on a private placement issued by a start-up company. Letter of Acceptance Waiver and Consent No. 2019064535602 (Aug. 15, 2022).
According to the AWC, in 2019, while Martino was designated as a supervisor for private placements by Ascendant Alternative Strategies LLC, he failed to conduct due diligence concerning a Canadian start-up company’s private placement offering. The customers of Ascendant Alternative Strategies LLC accepted Martino’s recommendation of the offering.
At issue was a federal lawsuit that had been filed against the start-up’s founder which resulted in a substantial portion of the company’s assets being placed in receivership and resulted in a contempt finding against the company’s CEO. Martino failed to establish and maintain a supervisory system to ensure due diligence. He also used unauthorized text messaging services to correspond with potential investors about the offering. Martino violated FINRA Rules 2010 and 4511, according to the AWC.
This is not the first time that Martino has been the subject of a regulatory action concerning their conduct in the securities industry. Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Martino has been required to be placed on heightened supervision as a condition of maintaining his securities agent registration based upon allegations that Martino became the subject of regulatory actions and customer disputes. Consent Order No. R-2021-0088 (Oct. 12, 2021).
Public Disclosure shows that Martino is referenced in four total customer initiated investment related disputes concerning Martino’s conduct while associated with securities broker dealers, including Ascendant Alternative Strategies LLC. On October 28, 2019, a customer filed an investment related civil action involving Martino’s activities in which the customer requested compensatory damages based upon allegations that Martino engaged in sales practice violations with regard to the recommendation and sale of GPB Capital Holdings LLC when Martino was associated with Ascendant Alternative Strategies LLC. Civil Action No. 1:19-cv-01050.
On May 13, 2021, another customer filed an investment related FINRA securities arbitration claim involving Martino’s conduct in which the customer requested compensatory damages based upon allegations that Martino made misrepresentations, defrauded the customer, and violated NY securities laws in connection with the sale of limited partnership interests issued by GPB. FINRA Arbitration No. AAA Arbitration.
Martino is also referenced in a customer complaint that was settled on November 26, 2002, for compensatory damages based upon allegations that Martino made unsuitable recommendations and misrepresentations and breached a fiduciary duty with regard to private placement transactions when Martino was associated with Axiom Capital Management Inc.
Since 2021, Martino has been associated with Benchmark Company LLC. From 2017 to 2022, he was associated with Ascendant Alternative Strategies LLC, and from 1993 to 2017, he was associated with Axiom Capital Management.
