Have You Lost Money with Cantone Research Inc.?

Have you invested money with Cantone Research or its affiliates?

In an official FINRA disciplinary proceeding in 2012, New Jersey brokerage firm Cantone Research Inc. (CRI) and firm Vice President and Chief Compliance Officer Christine Cantone (Cantone) agreed to the entry of findings, violations, and sanctions filed against both parties. Allegations in the complaint involve Cantone’s failure to reasonably supervise broker Maxwell Baldwin Smith.

It is believed that Smith sold fictitious investments to the firm’s customers and misappropriated over $1.6 million of their funds. Cantone, according to FINRA, should have recognized certain signs of misconduct on the part of Smith, however, failed to do so, and as a result CRI investors suffered significant financial losses.

Cantone was suspended for three months in any principal capacity, fined $10,000 jointly and severally with CRI and ordered to pay $200,000 in partial restitution to customers jointly and severally with CRI.

In a 2015 FINRA disciplinary proceeding Anthony Cantone, the firm’s President and majority owner, along with wife, Christine Cantone, were named in a complaint by the Department of Enforcement alleging that Anthony Cantone made fraudulent misrepresentations and omissions of material fact in connection with the sales and subsequent extensions of over $8 million of certificates of participation (COPs) in certain promissory notes.

According to the complaint, to date, four of the five relevant promissory notes have defaulted, resulting in approximately $6 million in losses to investors. Concurrently, both CRI and Anthony Cantone received fees, commissions, and other payments in connection with the offerings of more than $1 million.

Christine Cantone allegedly failed to reasonably supervise Anthony Cantone and CRI in their activities related to Christopher F. Brogdon, an individual who worked in the assisted living and nursing home industry. Both of the Cantones, along with CRI, either misrepresented or failed to disclose material facts to investors, including that:

1. Brogdon had twice been barred from the securities industry, once for “egregious misconduct” involving unauthorized transactions and later for a separate “scheme” involving financial misconduct

2. Brogdon had been indicted for racketeering, theft, and Medicaid fraud

3. Brogdon had been found liable for breaching a stock repurchase guarantee agreement

4. Several entities controlled by Brogdon had filed for bankruptcy

Unfortunately, the list of egregious allegations against Christine Cantone, Anthony Cantone, and Cantone Research goes on and on. The good news for investors caught in the web of Cantone scandals is that investors have rights. You, as an investor, may be able to recover financial losses incurred at the hands of these financial advisers and this brokerage firm.

You can pursue your legal right through securities arbitration. The skilled securities arbitration attorneys at Silver Law Group are well versed in recovering monetary losses for their clients. Representing investors nationwide, our securities arbitration attorneys are ready to guide you through the process and help you potentially regain what you have lost. Our consultation is free and no money is owed unless money is recovered on your behalf.