The Financial Industry Regulatory Authority (“FINRA”) announced that it barred Securities America, Inc. securities broker Michael Bastardi (CRD#: 6015424, Warwick, NY). Evidently, in a Letter of Acceptance, Waiver, and Consent (“AWC”) #: 2018059770401 which Bastardi submitted on May 10, 2019, and FINRA accepted on May 24, 2019, Bastardi acknowledged that he violated FINRA Rules because thwarted a FINRA Investigation regarding his alleged fraudulent sales practices. Here is a summary of the incident:

FINRA Investigates Allegations That Michael Bastardi Defrauded An Investor

Apparently, FINRA learned from Securities America that a client disputed Michael Bastardi’s sales practices by filing FINRA Arbitration #: 18-03358. Supposedly, this matter concerns Bastardi’s bad trading practices at Dalton Strategic Investment Services, Cape Securities, and Securities America. Allegedly, from 2012 to 2018, Bastardi made unsuitable margin trades. Secondly, Bastardi allegedly made unauthorized common and preferred stock or options purchases in the customer’s brokerage account. Thirdly, the client claimed that Bastardi committed forgery and engaged in a fraudulent investment scheme which caused the customer losses. Because of this, the client demanded $120,000 in compensation for losses, and $150,000 in compensation for lost opportunity costs. Currently, this matter us underway.

Bastardi Refuses To Give FINRA Documents And Information In Fraud Investigation

Following the client’s October 2018 filing of the dispute, FINRA began investigating Michael Bastardi for sales practice violations and fraud. Namely, between October 29, 2018 and January 10, 2019, FINRA asked Bastardi to send over documents and information so FINRA could investigate the allegations. However, Bastardi’s legal counsel made it clear to FINRA that Bastardi was not going to oblige. Evidently, Bastardi accepted that FINRA would find him in violation of FINRA Rules 8210 and 2010 for failure to comply with the investigation. Bastardi consented to the sanctions by executing the AWC. Therefore, Bastardi cannot, under any circumstances, work as a securities broker or maintain any association with a FINRA member firm.

Cape Securities Client Files Lawsuit Alleging Bastardi Churned Client’s Account

Although FINRA’s investigation focused on the aforementioned client dispute, Michael Bastardi reports that another client complained about his sales practices. Evidently, on January 23, 2015, a client of Cape Securities Inc. filed FINRA Arbitration #: 14-03748. The client claimed that Bastardi made unsuitable trades of stocks and other equities for the client’s account. Not only that, but the client claimed that Bastardi churned the client’s account. It appears Bastardi traded primarily to generate commissions from the client while disregarding the client’s best interests. Eventually, on April 29, 2016, Cape Securities Inc. settled the client’s claim by agreeing to pay the client $45,000.00.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Bastardi worked for Securities America from 2014 to 2016, National Securities Corporation from 2016 to 2018. Bastardi last worked for Chelsea Financial Services in 2018. Experienced losses by investing with securities broker Michael Bastardi? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.