Michael Richard Rosalia, of Melville, New York, a stockbroker registered with SW Financial, is the subject of an enforcement action initiated by Financial Industry Regulatory Authority (FINRA) in which the regulator is seeking sanctions against Rosalia for allegedly failing to comply with FINRA in connection with its investigation into Rosalia’s potential unsuitable and excessive trading in customer accounts. Department of Enforcement v. Rosalia, Disciplinary Action No. 2024041767201 (June 20, 2024).
FINRA first requested Rosalia’s testimony on January 3, 2024, for a session scheduled on February 1 and 2, 2024. Although he confirmed receipt of the request via email, Rosalia did not appear for testimony and did not request an extension.
After his initial failure to appear, FINRA made additional requests. On February 2, 2024, FINRA requested Rosalia to testify on February 23 and 28, 2024, Rosalia informed FINRA he would not attend. A third request was sent on March 25, 2024, for testimony scheduled on April 18, 2024. Once again, despite being informed through various channels, Rosalia did not appear.
FINRA alleges that by not cooperating, Rosalia impeded its investigation into potential misconduct including excessive and unsuitable trading in customer accounts between 2016 and 2022. Therefore, Rosalia violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure shows that Rosalia is referenced in ten customer initiated investment related disputes concerning Rosalia’s conduct while associated with securities broker dealers. On October 21, 2009, a customer initiated investment related FINRA securities arbitration claim involving Rosalia’s conduct was settled for $900,000.00 in damages based upon allegations that Rosalia engaged in unauthorized trading in stocks, failed to execute certain transactions, and made unsuitable recommendations when Rosalia was associated with American Capital Partners LLC. FINRA Arbitration No. 09-05476.
On May 10, 2018, a customer initiated investment related complaint involving Rosalia’s conduct was settled for $150,000.00 in damages based upon alleged churning, improper use of margin, unsuitable recommendations, and excessive commissions in connection with the sale of over-the-counter equities and stocks during the time that Rosalia was associated with Worden Capital Management LLC.
On December 12, 2022, a FINRA securities arbitration claim involving Rosalia’s conduct resulted in the customer being awarded compensatory damages because Rosalia and Worden Capital Management LLC were held liable for sales practice violations. FINRA Arbitration No. 21-02186. The Statement of Claim alleged negligent misrepresentation and omissions, breach of fiduciary contract, failure to supervise, negligent supervision, unsuitable trading, fraud, and churning during the period that Rosalia was associated with Worden Capital Management LLC.
Rosalia is also referenced in a FINRA securities arbitration claim in which the customer requested $229,696.00 in damages based on allegations that Rosalia breached a contract, was negligent, made unsuitable recommendations, engaged in unauthorized trading in over-the-counter equities and stocks, charged excessive commissions, committed fraud, and engaged in churning of the customer’s account. FINRA Arbitration No. 22-00347 (March 21, 2022).
Rosalia was associated with Worden Capital Management LLC in Garden City, New York, from December 2, 2015, to April 12, 2021, and SW Financial in Melville, New York, from April 5, 2021, to August 29, 2022.
