Sam Paolini Involved In Client Dispute, Regulatory Action

HTK Client Files Dispute About Securities Broker Sam Paolini

New information comes from Financial Industry Regulatory Authority (“FINRA”) BrokerCheck regarding securities broker Sam Peter Paolini (CRD#: 6087086, New York, New York). Evidently, the securities broker worked for securities firm Morgan Stanley from August 2012 to February 2014, and securities firm Hornor Townsend Kent Inc. (“HTK”) from January 2015 to September 2017. Notably, an HTK investor filed a dispute about Paolini, a securities regulator disciplined him, and HTK disaffiliated with him for alleged misconduct. Here’s more information about these disclosures.

HTK Client Alleges They Were Pressured To Purchase Whole Life Insurance Policy By Sam Paolini

Evidently, a client of Hornor Townsend Kent filed a dispute about Paolini’s insurance sale. Specifically, in this November 2020 complaint, the client said that the securities broker pressured them into buying a whole life insurance policy. Supposedly, the securities broker received the client’s money for outside investments as well. It appears that the client alleges $141,222.00 in damages associated with buying a whole life insurance policy from Paolini. This complaint is ongoing.

FINRA Expels Paolini As Securities Broker For Alleged Conversion

Notably, FINRA, who is a securities regulator overseeing most securities brokers in the United States, issued the sanction of a bar in all capacities to Sam Paolini in October 2017. This is to resolve FINRA’s allegations that Paolini misused client funds in violation of FINRA Rule 2010.
Evidently, the HTK client handed Sam Paolini a $7,000 check for investments. Supposedly, the client did not know who to make payment to, so they left blank the payee line on the check. It appears that Paolini was supposed to invest the client’s money but he did not. Particularly, the securities broker allegedly put his name down on the payee line and then cashed the client’s check. Supposedly, his misuse of the check is what FINRA deemed conversion.
Before Sam Paolini's bar, in September of 2017, HTK parted ways with him. Notably, HTK accused Paolini of violating policy. These allegations relate to his use of the client’s check. The securities firm claimed that the securities broker cashed the check rather than use it for an investment account.

Did Sam Paolini Cause You To Suffer Losses?

Did securities broker Sam Paolini engage in misconduct causing you damages or losses? If so, call Soreide Law Group at (888) 760-6552 and talk with a skilled securities lawyer about a potential recovery of those losses. Soreide Law Group represents clients on a contingency fee basis and advances costs. The firm has recovered millions of dollars for investors who suffered losses because of financial advisors and securities brokers. Note: Paolini denies all allegations of his sales practice violations.
CONTACT US