John Cangialosi Sanctioned, Involved In Investor Dispute

The Financial Industry Regulatory Authority (FINRA) reports allegations of sales practice violations by securities broker John Sebastion Cangialosi [CRD#: 3273830, New York, NY]. Cangialosi worked for (1) S.W. Financial from 2019 to 2022; (2) Worden Capital Management LLC from 2016 to 2019; and (3) Legend Securities Inc. from 2013 to 2016.

Evidently, one or more investors disputed the sales practices of the securities broker. Additionally, the securities broker discloses a regulatory action resulting in sanctions against him. However, Cangialosi denies the allegations against him. Read on to learn more about the allegations against Cangialosi.

Worden Capital Management Client Accuses John Cangialosi Of Unauthorized Transactions

Evidently, a client of Worden Capital Management contested John Cangialosi's sales practices by filing FINRA Arbitration #: 22-00347 on March 21, 2022. Supposedly, Cangialosi breached a contract, made unauthorized transactions, and charged excessive commissions. Allegedly, the stocks and over-the-counter equities transactions involving this securities broker caused the client to sustain damages. Therefore, the client seeks compensatory relief from Worden Capital Management or Cangialosi in the amount of $1,281,156 in this ongoing matter.

FINRA Sanctions Cangialosi

Specifically, FINRA says that from October 2014 through December 2018, Cangialosi excessively traded three client accounts while he was associated with Worden Capital Management. Supposedly, Cangialosi recommended that clients engage in high-frequency trading for short periods of time. Cangialosi’s clients apparently regularly followed his advice causing him to exercise de facto control over their accounts, according to FINRA.

Notably, FINRA says that Cangialosi executed 90 trades in one client's account from October 2014 to October 2016. This resulted in an annualized turnover rate of 13.7 and an annualized cost-to-equity ratio of 58.38%. As a result, the client’s account generated trading costs of $173,337, including $169,342 in commissions. Evidently, the client experienced losses in the amount of $279,803.

Supposedly, Cangialosi executed 15 trades from March 2017 to October 2017 in a separate client's account. Notably, FINRA says that the account had an annualized cost-to-equity ratio of 26.14% and an annualized turnover rate of 5.62. Evidently, the client realized losses of $31,618 due to Cangialosi's recommendations. For this reason, FINRA says that Cangialosi violated FINRA Rules 2010 and 2111.

Legend Securities Client Accuses John Cangialosi Of Breach Of Contract

Also, a Legend Securities client filed FINRA Arbitration #: 17-03396 about John Cangialosi. Specifically, the client alleged that Cangialosi breached a fiduciary duty, breached a contract, and made unsuitable and unauthorized transactions. For this reason, the client claims that they sustained damages pertaining to investments in stocks. Therefore, on November 24, 2018, Legend Securities settled this matter by paying the client $30,000.

Cangialosi Allegedly Churns Account Of Brookstone Securities Client

Evidently, a client of Brookstone Securities contested John Cangialosi’s sales practices by filing FINRA Arbitration #: 15-03051. Supposedly, Cangialosi acted negligently, churned the client's account, made unsuitable transactions, and misrepresented information. Allegedly, the over-the-counter equities transactions connected to this securities broker resulted in damages for the client. Therefore, Brookstone Securities opted to settle the matter on May 26, 2016, by compensating the client in the amount of $9,999.

Legend Securities Client Accuses John Cangialosi Of Overstating Account Value

Evidently, on August 11, 2015, a Legend Securities client filed an investment-related complaint about John Cangialosi. Specifically, the client alleged that Cangialosi had overstated the client's account value. Because of this, the client purportedly experienced damages relating to investments in stocks. Therefore, the client requested $38,000 in compensation from Legend Securities or Cangialosi. However, the securities broker-dealer denied this complaint.

Did Worden Capital Management, Securities Broker John Cangialosi Cause You To Experience Damages?

Have you experienced damages by investing with John Cangialosi? If the answer is yes, contact Soreide Law Group at (888) 760-6552 to speak with a securities lawyer about a potential recovery of your investment damages. Soreide Law Group, who has successfully recovered money for investors throughout all 50 states, represents clients through a contingency fee arrangement and advances all costs. Cangialosi and brokerage firms Cangialosi associated with deny all allegations against them.