Richard Crescenzo of Melville New York a stockbroker formerly employed by Capitol Securities Management Inc. is referenced in a customer initiated investment related arbitration claim in which the customer sought $400,000.00 in damages based upon allegations that (1) Crescenzo made investment recommendations to the customer that were not suitable given the tax consequences incurred by the customer in the liquidation and transfer of the customer’s assets and (2) the firm failed to supervise Crescenzo’s conduct concerning mutual fund, stock and variable annuity products. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01684 (August 10, 2017).
FINRA Public Disclosure reveals that Crescenzo is referenced in three more customer initiated investment related disputes which pertain to accusations of his sales practice violations while employed with Ameriprise Financial, Salomon Smith Barney, Prudential Securities Incorporated and Capitol Securities Management. Particularly, on December 8, 2003, a customer initiated investment related complaint concerning Crescenzo’s activities was settled for $60,000.00 in damages supported by allegations that Crescenzo failed to inform the customer about the risks pertaining to options investments, and advised an unauthorized party to sign documents to effect the customers’ investment transactions.
Thereafter, a customer initiated investment related arbitration claim involving Crescenzo’s conduct was resolved for $62,500.00 in damages founded on accusations that fixed-income and equities transactions had been placed in the customer’s account that were neither suitable for the customer nor authorized, and the customer’s investment portfolio had been churned. National Association of Securities Dealers (NASD) Arbitration No. 04-00360 (Mar. 30, 2005).
On October 31, 2014, another customer initiated investment related complaint regarding Crescenzo’s activities was settled for $9,000.00 in damages based upon allegations that the customer’s investments had poorly performed and Crescenzo was provided funds from the customer that he failed to repay.
FINRA Public Disclosure further confirms that Crescenzo has been suspended for two years from associating with any FINRA member in any capacity based upon consenting to findings that Crescenzo borrowed customer funds without procuring the firm’s authorization. Letter of Acceptance Waiver and Consent No. 2014043616601 (Mar. 28, 2016).
According to the AWC, Ameriprise Financial Services, Inc., Capitol Securities & Associates, Inc. and Capitol Securities Management, Inc. prohibited Crescenzo from entering into customer loan arrangements absent exceptions which did not apply in Crescenzo’s case. Nonetheless, Crescenzo borrowed funds from customers through by loan agreements and then failed to be forthcoming concerning his borrowing arrangements in the course of completing Capitol’s compliance attestations. As a result, FINRA found that Crescenzo’s conduct was violative of FINRA Rules 2010 and 3240.
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