Craig Zabala Losses?

Broker Craig Zabala Misappropriated Assets, SEC Complaint Indicates

Soreide Law Group is reviewing potential investor claims against securities broker Craig Anthony Zabala (CRD#: 2740680, Harlem New York). Notably, the Securities and Exchange Commission (“SEC”) brought a lawsuit against Zabala in which it makes troubling allegations including misappropriation. Not only that, but Financial Industry Regulatory Authority (“FINRA”) barred the broker. Here’s a summary of the main allegations that SEC and FINRA make about Zabala.

SEC Indicates That Craig Zabala Misappropriated More Than $3 Million

Evidently, in September 2020, SEC brought a civil suit against Craig Zabala. Allegedly, Zabala made misrepresentations about Concorde Group Holdings. It seems that from 2015 to 2020, Zabala may have raised nearly $4.4 million from 17 investors. Allegedly, Zabala told investors that he would develop Concorde Group Holdings into a merchant bank for mid-sized firms to invest in their affiliates.
Notably, SEC contended that Craig Zabala did not correctly represent the status of a Concorde Group Holdings investor. It seems that Zabala affected clients’ decisions to invest as they were reportedly told that Concorde was close to raising $25 million when it purportedly raised only $5 million at that time.
Most importantly, SEC alleges that Zabala misappropriated more than $3 million from investors, representing 72% of accumulated investor capital. The Complaint also makes allegations of Ponzi-like payments to investors of Concorde Group Inc. (the holding company of Concorde Group Holdings). For this reason, SEC says that Zabala violated anti-fraud securities laws and rules. Apparently, SEC seeks sanctions against Zabala which might include a permanent injunction. If found liable, it is possible that SEC may seek to bar Zabala from the securities industry.

FINRA Bars Zabala As Broker

Evidently, per a 2019 AWC, Zabala did not contest findings that he violating FINRA rules. Notably, FINRA says that Zabala did not provide documents and information for its investigation. Reportedly, FINRA asked for this information to determine if Zabala broke rules on outside business activities and private securities transactions. Evidently, as of August 2019, Zabala is no longer allowed to be a securities broker for any FINRA member securities firms.

Did Craig Zabala Sell You Inappropriate Investments?

Did you invest in Concorde products through Zabala? If so, get in touch with Soreide Law Group at (888) 760-6552 where you can speak with experienced lawyers about a possible recovery. Keep in mind that Soreide Law Group represents clients on a contingency fee basis and advances all costs. We have recovered millions of dollars for investors who have suffered losses from the misconduct of financial advisors and securities brokers. Craig Zabala denies all allegations of his sales practice violations.