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Cantone Research, Inc. is a broker/dealer specializing in researching small cap stocks offering a variety of bonds and several private placements, according to the firm’s LinkedIn profile. Cantone Research is located in Tinton Falls, New Jersey and has been in business since 1989. Cantone Research is owned by Anthony Cantone.
Regulatory ViolationsCantone Research, Inc. has been the subject of several regulatory investigations, some of which have resulted in disciplinary actions by regulators.
President Anthony Cantone charged with Fraud by FINRAOn November 20, 2015, FINRA filed a complaint against Cantone Research and Anthony Cantone alleging fraud in connection with sales of more than $8 million in five promissory notes. To date, four of the five promissory notes have defaulted resulting in losses of approximately $6 million in losses to investors. Christine Cantone, Cantone Research’s Chief Compliance Office during the time the alleged fraud occurred has also been charged in the complaint for failing to supervise Anthony Cantone. The promissory notes were executed on behalf of one of the entities controlled by Christopher Brogdon. Brogdon has been charged with fraud by the SEC. The FINRA complaint also alleges that Cantone misrepresented and/or failed to disclose material facts to investors regarding Brogdon’s background, including the fact that he had been twice barred from the securities industry for misconduct involving unauthorized transactions, he had been indicted for racketeering, theft and Medicaid fraud, and several entities under his control had filed for bankruptcy.
FINRA Fines and SanctionsSource: FINRA, Financial Industry Regulatory Authority, Inc. Full Disciplinary Reports Available to the public at: finra.org.
Cantone Research, Inc. (CRD #26314, Tinton Falls, New Jersey) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $25,000 and must pay partial restitution to customers in the amount of $200,000. Without admitting or denying the findings, Cantone consented to the sanctions and the findings that it failed to establish and maintain a supervisory system and failed to establish, maintain and enforce written supervisory procedures reasonably designed to achieve compliance with applicable securities laws with regard to monitoring the activity of registered representatives in outside brokerage accounts. This violation was related to failure to follow up on red flags concerning criminal activity of a former employee who misappropriated over $1.6 million of customer funds through a fraudulent scheme. (FINRA Case #2009020383002)
Silver Law GroupSilver Law Group is a nationally recognized securities and investment fraud law firm with Martindale-Hubbell® Peer Review Ratings™ “AV” rated lawyers that handle all securities arbitration matters on a contingency fee basis. The Law Firm, at no cost to investors will review account activity and account statements to determine whether there was any misconduct, whether there are damages and the legal causes of action. We investigate all sales practice violations, while taking into consideration the investor’s age, investment background, and the relationship between the investor and the brokerage firm and its financial advisor. According to securities industry rules and regulations, unsuitable investment advice, securities concentration, fraudulent misrepresentations and omissions of material facts, breach of fiduciary duty, conflicts of interest, variable annuity switching are among the causes of action that may be available to investors in claims for damages against brokerage firms and their financial advisors in a securities arbitration claim filed with the Financial Industry Regulatory Authority (FINRA). We represent investors in FINRA arbitration claims on a contingency fee basis.
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