FINRA recently initiated disciplinary proceedings against former broker
Vito J. Balsamo (CRD# 2084901). In response, Balsamo submitted an Offer
of Settlement. This week, FINRA accepted Balsamo’s offer and filed an
Order Accepting Offer of Settlement.
Back in April, we reported that FINRA had filed a complaint against Balsamo accusing
him of misconduct for activities occurring from June 21, 2010 through
September 15, 2010. Balsamo allegedly solicited the sale of ownership
interests in V.W. Industries, LLC to three investors, all of whom were
Balsamo’s clients at National Securities Corporation. Those investments
were outside the scope of regular NSC business activity and unapproved
by the firm. FINRA also accused Balsamo of accepting V.W. Industries incentives
to sell interests in the company so he could get ownership interests.
Balsamo’s Offer of Settlement means that he consents to FINRA’s
findings without admitting or denying the allegations against him. The
misconduct of which FINRA accused Balsamo can be described as “selling away.” This term encompasses all types of securities sales and offerings
that are not affiliated with a broker’s managing firm and have not
been approved by the managing firm. In cases where a broker or financial
advisor is accused of selling away, investors may be able to hold that
broker’s managing firm responsible for failing to properly supervise
If you invested in V.W. Industries at Vito Balsamo’s recommendation
and lost money, we invite you to contact a securities fraud lawyer at
Meyer Wilson today for a
free case review.