David Melilli Targeted In FINRA Investigation

FINRA Investigating Securities Broker David Melilli (SagePoint, Cambridge Investment Research)

Soreide Law Group provides you with important investor-related information in regard to securities broker David John Melilli (CRD#: 5254172, Moorestown, New Jersey). Evidently, Melilli worked for SagePoint Financial from 2010 to 2019, LPL Financial in 2018, and Cambridge Investment Research from 2019 to 2020. Namely, Financial Industry Regulatory Authority (“FINRA”) is investigating David Melilli for possible sales practice violations including unsuitable and excessive trading. Not only that, but three investors disputed his sales practices. Here’s more on the allegations against this securities broker.

FINRA Investigates David Melilli For Possible Unsuitable, Excessive Trading

Notably, FINRA – who is responsible for regulating securities brokers across the United States – opened an investigation into David Melilli and even recommended disciplinary action against him. First of all, Melilli may have excessively and unsuitably traded in violation of FINRA rules. Secondly, the securities broker might have engaged in unauthorized trading in which he used discretion without proper client authorization and traded in a deceased client’s account. Thirdly, the securities broker potentially violated FINRA rules through the forgery of client signatures. Fourthly, FINRA indicated that Melilli may have misled a client and did securities business privately. This investigation is ongoing. Evidently, the securities broker has not been charged with any sales practice violations by FINRA at this time.

SagePoint Financial Client Alleges That Melilli Engaged In Unauthorized Trading

On September 8, 2020, SagePoint Financial clients made a complaint about David Melilli. Namely, the clients alleged that Melilli made unauthorized trades in their investment accounts. It appears that those clients incurred damages because of the securities broker’s options trading. For this reason, they asked for compensation in this ongoing matter.

Cambridge Investment Research Client Indicates That David Melilli Made Risky Stock Investments

In addition, on September 4, 2020, a client of Cambridge Investment Research disputed David Melilli’s sales practices. Specifically, the client alleged that Melilli invested their money in risky stocks. Not only that, but Melilli supposedly failed to explain the equities before making the investments. Moreover, the client stressed that Cambridge Investment Research’s management fees were not accurate. It appears that they may have invested in unsuitable stocks and experienced damages. However, Cambridge Investment Research denied this client’s dispute on September 16, 2020.

SagePoint Financial Client Alleges Breach Of Fiduciary Duty In Dispute About Melilli

Also, a client of SagePoint Financial took aim at David Melilli’s sales practices according to a FINRA Arbitration Claim in February 2020. Notably, the client alleged that Melilli’s options trading lacked authorization. It also appears that Melilli or SagePoint was allegedly in breach of fiduciary duty and negligent with regard to options transactions. In addition, the client alleged that the securities broker’s churning of the investment account resulted in damages. Supposedly, these actions caused the client to be wiped out financially. Because of this, the client demanded $140,000 in this pending matter.

Did You Receive Losses By Investing Through David Melilli?

Did you sustain losses or other harm because of broker David Melilli? If so, call Soreide Law Group at (888) 760-6552 and speak with a qualified securities lawyer about a potential recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered substantial compensation for investors who have incurred losses because of their financial advisors and securities brokers. Please note that Melilli denies all allegations of his sales practice violations.
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