Michael Pellegrino Suspended By FINRA

FINRA Suspends TCM Securities Broker Michael Pellegrino, And TCM Investors File Disputes About Him

Financial Industry Regulatory Authority (FINRA) BrokerCheck contains important information regarding Taylor Capital Management (TCM) securities broker Michael August Pellegrino (CRD#: 5900843, Oakbrook Terrace, Illinois). Namely, on January 6, 2021, FINRA suspended him for a period of two months. During that period, he could not act as a broker or associate with any FINRA-member broker dealers. In addition, investors complained about Pellegrino’s REIT sales. Here’s a summary of these disclosures.

FINRA Suspends Michael Pellegrino

Evidently, the regulator suspended Michael Pellegrino between February 1, 2021 and March 31, 2021. This comes as a result of an investigation where FINRA alleged that the broker distributed communications to investors that contained misleading statements, improper projections of future performance, and omissions of key information.
The information allegedly distributed by Michael Pellegrino claimed that the investment was not a security. The communication was supposedly misleading in that it created no contractual obligation for the issuer to distribute any investment returns. Pellegrino’s communications also stated that the product would carry no market risk. FINRA found this to be misleading. Finally, the broker ’s communications omitted key details including that the investment could result in a complete loss of principal.
Michael Pellegrino did not admit or deny FINRA’s findings. Still, he consented to the sanction by signing an Acceptance, Waiver, and Consent letter. He also agreed to pay a fine of $10,000.

Pellegrino Accused Of Misrepresenting And Selling Unsuitable REIT To Client

In a dispute about Michel Pellegrino dated July 11, 2019, a TCM Securities client accused him of misrepresenting and selling an inappropriate non-traded REIT to them. Also, the client claimed that TCM Securities failed to supervise those transactions. Because of this, the client is seeking $125,000 in damages. Evidently, this matter awaits a resolution.

Client Awarded $75,000 Due To Michael Pellegrino’s Investment Recommendations

Notably, a client of Michael Pellegrino’s at TCM Securities (Taylor Capital Management) received $75,000 in compensation in 2019 after an arbitration hearing determined that TCM was liable on the client’s claims of unsuitable investment recommendations, negligent representation, and breach of fiduciary duty. Evidently, this matter concerned real estate investment trusts including American Realty Capital Trust V Inc. and NorthStar Healthcare Income Inc. Supposedly, Pellegrino concealed facts regarding the client’s investment portfolio. While not specifically named in the arbitration award, Pellegrino is the subject of the dispute.

TCM Securities Client Alleges Pellegrino Misrepresented REIT

In an additional disclosure on Michael Pellegrino’s BrokerCheck record, a TCM Securities client lodged a dispute alleging misrepresentation. In the April 2019 dispute, the client claimed that the broker misrepresented REITs when presenting the investment to the client. It seems that the client’s investment losses concerned NorthStar REIT. For this reason, they asked for $50,000 in compensation in this ongoing matter.

Losses By Investing With Michael Pellegrino?

Apparently, securities broker Michael Pellegrino denies allegations of sales practice violations. Have you experienced investment losses by interacting with this broker? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered substantial compensation for US clients who have experienced losses because of their securities brokers and financial advisors.