The Rosca Scarlato LLC law firm attorneys are investigating conduct related to broker Jeffrey Stanga’s alleged failure to fully disclose outside business activities according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), under review by attorney Alan Rosca. Investor rights attorney Alan Rosca and his colleagues are investigating conduct related to Jeffrey David Stanga’s alleged violations of the securities rules and encourage investors who are concerned about their investments with Stanga to call 888-998-0530, send an email to arosca@rscounsel.law, or complete the contact form on this webpage for a free, no-obligation consultation and discussion of potential options.
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Jeffrey D. Stanga Suspended, Fined, and Ordered to Pay Disgorgement
As alleged in the AWC, Stanga sold a private placement offering of membership units in connection with a residential real estate flipping business (Company A) between February 2014 and June 2014.
Furthermore, Stanga allegedly provided written notice of Company A to his firm on a Form U4, but he reportedly described his involvement as “give advice/opinions on buying/fixing/selling residential homes” but failed to describe his actual role as a manager, as stated in the AWC.
The AWC further alleges broker Jeffrey David Stanga sold promissory notes to investors in connection with another real estate brokerage firm (Company B). Furthermore, Stanga allegedly participated in eight private securities transactions totaling over one million dollars. He allegedly facilitated the renewals of Company B’s promissory notes he sold to investors prior to his association with his firm, FMN Capital, according to the AWC.
Stanga allegedly acted as an intermediary between investors and Company B by notifying investors of the opportunity to renew their promissory notes, reviewing draft documents, negotiating interest rates, and sending signed promissory notes to Company B on behalf of the investors, as alleged in the AWC.
It is important to note that broker Jeffrey Stanga allegedly received $28,359 in referral fees in connection with these private securities transactions and he allegedly did not provide a detailed written notice to FMN Capital prior to his participation, as stated in the AWC.
As a result of his alleged misconduct, Stanga accepted a sanction including a 12-motnh suspension from associating with any FINRA member firm in all capacities, a $10,000 fine, and disgorgement of $28,259.
Jeffrey Stanga signed the AWC accepting and consenting to FINRA’s findings, without admitting or denying the findings, and solely for the purposes of the proceeding brought by or on behalf of FINRA, prior to a hearing and without an adjudication of any issue of law or fact.
Investors who are concerned about their investment with Stanga may contact attorney Alan Rosca or his colleagues for a free, no-obligation consultation and discussion of potential options, or to provide any useful information. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Jeffrey David Stanga Has Two Customer Dispute Disclosures Shown as Settled in 2018
A customer filed a dispute concerning Stanga in December 2017 alleging they were sold an unsuitable product. The customer was awarded $75,000 in September 2018 for the alleged damages, as reported on his Brokercheck page.
Similarly, in January 2018 another customer filed a dispute in connection to broker Jeffrey Stanga alleging they were sold an unsuitable product. The customer received a settlement of $46,000 in December 2018.
Stanga Allegedly Affiliated with Red Cedar Residential and Scevro Finance
The Rosca Scarlato LLC law firm attorneys uncovered Stanga was affiliated with a business named Red Cedar Residential.
Broker Jeffrey Stanga also allegedly participated in outside business activities with Scevro Finance, working as an Independent Insurance Agent since December 2006, according to his Brokercheck page.
Stanga’s Brokercheck page also reports he was registered with FMN Capital Corporation located in Mission Viejo, California from October 2014 until April 2021.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Potential Options for Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to broker Jeffrey David Stanga’s alleged FINRA sanction and participation in outside business activities.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who are concerned about their investments with Stanga may contact attorney Alan Rosca or his colleagues for a free no-obligation evaluation of their potential options by calling 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.