ChangePath Stockbroker Terminated After Receiving Customer Arbitration Claim
Gary Carl Mastrodonato of Oriental North Carolina a stockbroker formerly associated with Madison Avenue Securities LLC and ChangePath LLC has been terminated on March 25, 2019 supported by allegations that the stockbroker was subject of a customer initiated investment related arbitration claim relating to his real estate securities transactions.
This is not the first time that Mastrodonato has been terminated based upon accusations of his misconduct in the securities industry. Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that prior securities broker dealer employer Securities America Inc. discharged Mastrodonato based upon accusations that his annuity transactions violated its procedures or policies.
FINRA Public Disclosure also reveals that Mastrodonato is referenced in a customer initiated investment related complaint on May 26, 2017 where the customer sought $59,000.00 in damages based upon accusations that the customer’s investments had been churned while Mastrodonato was associated with Kalos Capital Inc.
On March 18, 2019, another customer filed an investment related arbitration claim involving Mastrodonato’s conduct in which the customer requested $61,348.00 in damages because of losses sustained by Mastrodonato’s actions at Madison Avenue Securities, Resource Horizons Group and Kalos Capital. FINRA Arbitration No. 19-00681.
According to the claim, a fiduciary duty that was owed to the customer had been breached with regard to alternative investments and a variable annuity sold by Mastrodonato. The claim also alleged that the illiquidity of investments had been omitted or misrepresented when transactions were effected. The customer was allegedly placed into securities that were not suitable given the customer’s goals of investing on a short term basis.
Mastrodonato has been fined $10,000.00 and suspended from associating with any FINRA member in any capacity based on findings that he evaded Securities America’s supervisory process with regard to at least twelve variable annuities exchanges effected for customers. Department of Enforcement v. Gary Carl Mastrodonato. Disciplinary Proceeding No. 2009019192801.
According to the Decision, Mastrodonato failed to be forthcoming with Securities America concerning two exchanges which had been denied by the securities broker dealer. The Decision also stated that two applications which were submitted directly to an insurance company without Securities America’s knowledge were not subsequently withdrawn by Mastrodonato after he learned of Securities America’s position on the matter. FINRA determined that Mastrodonato’s conduct violated FINRA Rule 2010.
Mastrodonato was registered with Kalos Capital between October 21, 2014 and August 24, 2017 and then registered with Madison Avenue Securities between August 24, 2017 and January 11, 2019.