FINRA has filed a complaint against former Advisory Group Equity Services Ltd. (AGES) broker Frank Sapareto. The March 31, 2021 complaint alleges that Sapareto engaged in an outside business activity without providing prior written notice to AGES, and that he repeatedly provided false or misleading information to FINRA to conceal his involvement in his outside business activity.
If you have lost money with Frank Sapareto, or AGES, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Disciplinary Proceeding No. 2018060379701
The FINRA complaint alleges that between April 2018 and June 2018, while registered through AGES, Sapareto created Standard Video LLC for the purpose of producing and marketing a film. In violation of FINRA Rules 3270 and 2010, Sapareto failed to provide prior written notice of his outside business activity to AGES.
AGES learned about the outside business activity when Sapareto was sued in connection with his activities with Standard Video.
On October 31, 2018, AGES filed a Uniform Termination Notice for Securities Industry Registration (Form U5) terminating Sapareto’s registration and stating that the firm had discharged him “due to a violation of the Firm’s Written Supervisory Procedures (WSPs) and FINRA Rule 3270 Outside Business Activities.”
Subsequently, FINRA commenced an investigation. Throughout the investigation, Sapareto repeatedly provided false or misleading information to FINRA to conceal his involvement in his outside business activity. Sapareto provided false or misleading information in response to a written request for information and false or misleading sworn testimony to FINRA during an on-the-record interview. For example, Sapareto falsely told FINRA that Standard Video was formed without his knowledge or consent, that he was not involved in producing a movie, that he had not exchanged emails with a third party about producing the movie, and that he had not spent money in furtherance of Standard Video’s activities.
FINRA Rules 3270 and 2010
FINRA Rule 3270 provides, in relevant part, that “[n]o registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.”
FINRA Rule 2010 requires member firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
Frank Sapareto (CRD#: 2274877)
Sapareto has 26 years of experience in the securities industry and has been registered as a broker with 8 firms, including the following:
- Trustmont Financial Group, Inc., Derry, NH (April 15, 2019 – May 5, 2020);
- Fortune Financial Services, Inc., Monaca, PA (January 2, 2019 – January 15, 2019);
- Advisory Group Equity Services Ltd., Westport, CT (February 16, 2017 – October 31, 2018);
- Source Capital Group, Inc., Westport, CT (March 5, 2015 – April 24, 2017); and
- Source Capital Group, Inc., Westport, CT (December 1, 2001 – December 31, 2014).
Sapareto is not currently registered or associated with a FINRA member but remains subject to FINRA’s jurisdiction.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Frank Sapareto, or AGES, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at email@example.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.