David Melilli Investigation
April 2022- Moorestown, NJ
The FINRA records of David J. Melilli , a former financial advisor who was last employed by Cambridge Investment Research and Sagepoint Financial, Inc., disclose a regulatory event, 2 customer disputes and a termination from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 11/ 2021, in FINRA case #2019063681001 Melilli consented to the sanction and to the entry of findings that he refused to produce documents and information requested by FINRA in connection with its investigation into, among other things, whether he exercised discretion without written authorization in a client’s account. To resolve the matter Melilli was indefinitely barred from FINRA in all capacities.
In September of 2020, a SagePoint Financial customer alleged that Melilli made trades in the account without authority to do so. The amount of damages is not specified and this case is still pending.
In 2/2020, a client of Sagepoint Financial filed FINRA case #20-00582 alleging unauthorized trading by Mellilli, breach of fiduciary duty, unsuitability, negligence, common law fraud, 10 (b) violation and churning. Damages of $140,000 are sought and this case is still pending.
In 1/2020, Melilli was discharged from employment with Cambridge Investment Research, Inc., where he had worked since 9/2019, after allegations that he placed discretionary trades without authority.
Prior to that Melilli was registered with SagePoint Financial, Inc., LPL Financial and Janney Montgomery Scott.
If you have losses in an account handled by David Melilli contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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