SEC Bars Robert DePalo For Fraud Conviction

Broker Robert DePalo Barred Following Fraud Conviction

Investor Alert! Securities broker Robert DePalo (CRD#: 2946313, Greenwich, Connecticut) is no longer allowed to act as a broker or investment advisor, according to the Securities and Exchange Commission (“SEC”), who barred DePalo after he was convicted of fraud. Not only that, but FINRA barred the broker and a client raised serious concerns about his sales practices. In sum, these disclosures highlight that DePalo defrauded investors and caused their losses. Read on to learn more about the disgraced broker.

Robert DePalo Barred After Fraud Conviction

Supposedly, on March 18, 2019, SEC issued Order #: 3-19109 barring Robert DePalo. First of all, the Commission pointed out that a judgement had been entered against him that permanently enjoined him from violating federal securities laws. That judgement followed SEC’s civil action against the broker in which it alleged that he violated antifraud laws in connection with a private placement offering for Pangaea Trading Partners LLC.  Secondly, SEC pointed out that in 2018, DePalo was convicted of grand larceny in the first degree, one count of a scheme to defraud in the first degree, and one count of securities fraud. In fact, DePalo received a 7-21 prison sentence.

SEC’s Fraud Allegations Against DePalo

SEC indicated that Robert DePalo was the orchestrator of a $6,500,000 offering fraud. Namely, in 2015, the securities regulator brought charges against him claiming that he deceived more than 20 investors. Allegedly, DePalo misrepresented his clients’ investment values and he lied about how he would use their money. Notably, DePalo transferred a couple million in investor funds to his personal bank. After that, he lied to conceal the fraud, SEC confirmed.

FINRA Bars Robert DePalo

FINRA also barred Robert DePalo in 2016 when he did not reply to its Request for Information. Apparently, a Hearing Panel expelled him from association with any FINRA member effective August 4, 2016. Notably, FINRA mentioned that DePalo failed to testify as required under Rule 8210.

Arjent Client Files Dispute About DePalo

Evidently, a client of Arjent LLC took issue with Robert DePalo by filing a dispute under FINRA Arbitration #: 15-01602. Namely, the client alleged that DePalo engaged in “misconduct” in regard to their investments in Brookville Fund Managers or Gorham Fund. Apparently, this matter is ongoing.

Did Arjent Securities Broker Robert DePalo Sell You Bad Investments?

Have you experienced losses by investing with Robert DePalo? 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 millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like DePalo.