On March 12th, the Financial Industry Regulatory Authority (FINRA) ordered Brookville Capital Partners to pay over $1 million to victims and an additional $500,000 as a fine for securities fraud related to their sales of private placement offerings. Anthony Lodati, the firm’s president was also barred from the securities industry.
The FINRA release states that in 2011 investors were solicited to purchase a private placement offering called Wilshire Capital Partners Group LLC. Investors allegedly believed they would have an indirect interest in pre IPO shares of Fisker Automotive.
Also in 2011, Lodati learned that John Mattera, a convicted felon, had executed sales acting as Wilshire’s CEO ad Managing Director. Mattera did not disclose that he had been sanctioned by the SEC for securities fraud nor that he had received a felony conviction in 2003. Lodati and Brookville purportedly withheld the information about Mattera and continued to sell interests in Wilshire to customers. In total, Brookville received more than $104,000 in commissions.
Brookville and Lodati neither admitted nor denied FINRA’s charges but consented to the entry of findings.
Both federal and state laws require companies conducting a securities offering to tell each potential investor all material information about the company, its principals, and the investment opportunity (including the risks of the investment) that a reasonable person would want to know in order to make an informed investment
Contact Investor Defender attorneys if you have concerns about your financial advisor or securities portfolio. We represent individual and institutional investors nationwide in FINRA arbitration and in court and have been doing so with great success since 1985.
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