Jerry Allen Cicolani Jr., of Cleveland, Ohio, a stockbroker formerly registered with PrimeSolutions Securities, Inc., is the subject of a Securities and Exchange Commission (SEC) Order Instituting Administrative Proceedings pursuant to Securities Exchange Act of 1934 Section 15(b) as well as Section 203(f) of the Investment Advisers Act of 1940 containing findings that Cicolani illegally sold and structured unregistered securities. In the Matter of Jerry A. Cicolani, Jr., File No. 3-16904 (Oct. 15, 2015).
According to the Order, between October of 2012 and May of 2014, investors had been solicited by Cicolani to make contributions in KGTA Petroleum, Ltd., based upon claiming that the monies investors contributed would support the company’s agenda to buy and sell oil and fuel. The Order revealed that the contributions, unbeknownst to the investors, ended up as part of a Ponzi scheme.
Apparently, there were several risks concerning the investment that Cicolani knew about during the time he effected the faulty transactions with investors. Apparently; however, he did not reveal to investors that he would be generating $4,000,000.00 in commissions in return for his sales efforts. Cicolani reportedly omitted from PrimeSolutions any mention of his business activities involving KGTA, and concealed his commissions by way of funneling the money into companies that he created. Cicolani reportedly pled guilty to structing in violation of 31 U.S.C. §§ 5324(a), as well as effecting the sale of securities that were not registered in violation of 15 U.S.C. §§ 77e.
Cicolani was also barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that he did not communicate with FINRA in regard to his business activities. Case No. 2014041327601 (Sept. 15, 2014)
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Cicolani has been identified in seventy-three customer initiated investment related disputes containing allegations of his misconduct while he was associated with PrimeSolutions Securities, Inc., PrimeSolutions Securities, Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Specifically, between December 18, 2015, and April 12, 2016, two customers filed investment related arbitration claims involving Cicolani’s conduct, wherein customers collectively sought $2,000,000.00 in damages based upon allegations that Cicolani made misrepresentations and omissions to the customers, and sold securities away from his firm.
Moreover, on February 21, 2017, a customer initiated investment related arbitration claim regarding Cicolani’s activities was resolved for $345,000.00 in damages based upon allegations against him of selling away, misrepresenting facts concerning securities, and effecting unsuitable investment recommendations between 2010 and 2014. On June 6, 2017, a customer was awarded $49,000.00 in damages according to an investment related arbitration claim involving Cicolani’s misconduct, based upon allegations of fraud. The customer additionally alleged that PrimeSolutions Securities, Inc. was liable for breach of the duty to warn, fraudulent inducement, and failure to supervise Cicolani’s activities regarding a promissory notes transaction involving the customer’s funds.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
