Michael Evangelista Allegedly Recommended ABC Corp Sans Authorization, Reportedly Netting $3 Million in Sales, $50K in Commissions
Between 2006 and 2011 Michael Evangelista allegedly referred approximately six of his firm customers to a third party, and said customers later invested in real estate securities issued by matter-of-factly named ABC Corp. (ABC), an entity that purportedly invested in real estate in Pennsylvania and neighboring states, according to a FINRA Letter of Acceptance, Waiver and Consent (AWC).
The aforesaid customer investments, totaling over $3 million, allegedly occurred away from his Associated BDs and RIA, and Evangelista received a minimum of $50,000 in compensation related to these referrals, the AWC further alleges.
Evangelista reportedly received compensation from MG, the president of ABC, for referring individuals to invest in ABC, initially getting commissions of 4 % of amounts invested, for a total of at least $50,000 in referral fees, and subsequently receiving compensation in the form of equity stakes in certain ABC limited partnership, the AWC also alleges.
Michael Evangelista Failed to Perform Adequate Research Re: ABC
Evangelista reportedly did not disclose to his associated BDs that these customers were purchasing securities away from the firm, or that he was being compensated in connection with his referrals, both acts in violation of NASD and FINRA Rules, according to the FINRA AWC.
Evangelista also allegedly failed to perform adequate research about the ABC investment prior to selling it, and, in addition, the AWC notes, Evangelista allegedly provided FlNRA staff with incomplete and/or inaccurate information in response to a written request in violation of FINRA Rules.
For the record, from 1994 to December 2012, Evangelista was registered with the following FINRA regulated broker-dealers associated with the RIA: Capital Analysts, Inc. from November 1994 to December 2007; Cambridge Investment Research, Inc. from January 2008 to May 2012; and Comprehensive Asset Management and Servicing, Inc. from May 2012 to December 2012, the AWC also reports.
Investment Recovery Lawyers Investigating
The Peiffer Wolf Carr & Kane investment recovery lawyers often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment misconduct may contact the investment recovery lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.
Broker: Michael Evangelista
Status: INVESTIGATED by Peiffer Rosca.
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