Michael Richard Rosalia, a former broker from Sayville, New York, previously associated with Worden Capital Management LLC in Garden City, has been barred by Financial Industry Regulatory Authority (FINRA) for failing to cooperate with its investigation. FINRA’s action alleged that Rosalia engaged in excessive trading and made unsuitable investment recommendations to his customers. Financial Industry Regulatory Authority Department of Enforcement v. Michael R. Rosalia Disciplinary Proceeding No. 2019060753508.
FINRA began investigating Rosalia’s conduct after identifying potentially inappropriate trading activity in at least five customer accounts between May 2016 and August 2022. To further its inquiry, FINRA requested Rosalia’s on-the-record testimony multiple times. On January 3, 2024, FINRA formally requested his appearance for testimony scheduled on February 1 and February 2, 2024.
Rosalia acknowledged receiving the request but failed to appear. A second request was issued on February 2, 2024, for testimony scheduled on February 23 and February 28, 2024. In response, Rosalia informed FINRA via email that he would not comply. A third and final request for testimony was sent on March 25, 2024, for an appearance on April 18, 2024, but Rosalia did not respond.
On October 15, 2024, a FINRA Hearing Officer issued a Default Decision barring Rosalia from associating with any FINRA member firm in any capacity. This decision was based on Rosalia’s failure to comply with FINRA Rule 8210, which requires individuals to provide testimony when requested, and FINRA Rule 2010, which mandates compliance with ethical standards. The decision will become final on November 12, 2024, if no appeal or further action is taken.
Accordiing to FINRA Public Diclosure, Rosalia has also been named in more than a dozen FINRA arbitration cases by his former customers. In a case initiated on March 21, 2022 (Case No. 22-00347), allegations included churning, excessive commissions, unauthorized trading, unsuitability, negligence, breach of contract, and fraud involving equities. The customers sought $229,696.00 in damages, and the case remains unresolved. In another arbitration filed on August 25, 2021 (Case No. 21-02186), Rosalia was the subject of an complaint alleging churning, excessive and unsuitable trading, fraud, breach of fiduciary duty, and failure to supervise, seeking $1,606,034.39 in damages. On December 12, 2022, a FINRA panel awarded $2,000.00 in compensatory damages against Rosalia, which remains unpaid as of February 8, 2023.
A customer dispute from April 19, 2019, alleged that Rosalia charged an unauthorized $8,000.00 commission in August 2018 involving equities. The case was settled on January 30, 2020, for $4,000.00, with Rosalia contributing $2,000.00 personally. Additionally, a customer arbitration filed on November 26, 2018 (Case No. 18-03760), accused Rosalia of fraud, misrepresentation, negligence, breach of contract, and breach of fiduciary duty related to equities activity between May 2016 and January 2018. The dispute was settled on October 2, 2019, for $14,999.99, with Rosalia personally contributing $7,499.99.
Rosalia was registered with Worden Capital Management LLC from December 2, 2015, to April 12, 2021, and subsequently with SW Financial from April 5, 2021, to August 29, 2022. He is no longer registered or affiliated with any FINRA member firm.
