Capital Investment Group Broker Caught Selling Away
Seth Andrew Nannini of Charlotte North Carolina a stockbroker currently registered with Capital Investment Group has been fined $7,500.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Nannini engaged in https://stockbrokerfraud.com/stockbroker-misconduct/selling-away/unauthorized private securities transactions. Letter of Acceptance Waiver and Consent No. 2016049895201 (Dec. 21, 2018).
According to the AWC, while employed by Capital Investment Group, Nannini took part in seven private securities transactions without notifying the firm about her involvement in those transactions. In particular, Nannini reportedly steered Capital Investment Group customers towards making investments in a biotech manufacturer. Nannini reportedly furnished the customers’ information about the biotech manufacturer; helped customers’ examine the company’s operations; assisted customers’ make their investment purchases; and updated customers about their investments once they had been made. Collectively, customers made a $290,000.00 investment.
The AWC stated that one of the customer’s funds had been transferred by Nannini from the customer’s Capital Investment Group account into an outside individual retirement account, then transitioned to the biotech manufacturer. Consequently, Nannini created an obstacle for Capital Investment Group to know that the customer made the investment away from the firm.
Ultimately, the biotech manufacturer filed bankruptcy before it paid either customer who Nannini helped purchase the investments. Consequently, both customers sustained catastrophic losses.
Moreover, FINRA stated that on at least two occasions, Nannini had been administered a compliance questionnaire by Capital Investment Group where he claimed that he had not sold away from the firm. FINRA found Nannini’s conduct violative of FINRA Rule 2010 and NASD Rule 3040.
FINRA Public Disclosure reveals that Nannini is referenced in two additional customer initiated investment related disputes pertaining to allegations of his violative conduct during the time that he was associated with Capital Investment Group. Particularly, a customer filed an investment related complaint involving Nannini’s conduct where the customer sought $120,000.00 in damages founded on accusations that sub-account options and an optional variable annuity rider had not been positioned to the customer, and the customer was not provided an annuity contract.
Thereafter, a customer filed an investment related arbitration claim involving Nannini’s activities in which the customer requested $120,000.00 in damages based upon allegations including violation of North Carolina’s Securities Act; negligence; misrepresentation; and fraud in regard to a promissory note purchased by the customer. FINRA Arbitration No. 16-00899 (Apr. 11, 2016).