Investors are urged to be cautious following serious allegations against financial advisor Louis Pellegriti. The Financial Industry Regulatory Authority (FINRA) has issued a suspension against Pellegriti for failing to comply with an arbitration award or settlement agreement, or to satisfactorily respond to a FINRA request for information concerning the status of compliance. This incident occurred while Pellegriti was associated with Spartan Capital Securities, LLC from August 15, 2017, to January 8, 2019.
Allegation’s Seriousness and Case Information
Table of Contents
The allegations against Louis Pellegriti are grave and should be treated with utmost seriousness. FINRA’s suspension is a severe disciplinary action that indicates a significant breach of regulatory rules and standards. The suspension applies to all capacities, and its duration is indefinite, continuing until the required payment is made or discharged, starting from September 12, 2023.
The case number assigned to this incident is 22-02719 and the regulatory action was finalized on September 12, 2023. The respondent, Pellegriti, was associated with Spartan Capital Securities, LLC (CRD 146251) during the time of the alleged misconduct.
Explanation in Simple Terms and the FINRA Rule
In layman’s terms, Louis Pellegriti has been accused of failing to comply with an arbitration award or settlement agreement. Additionally, he did not adequately respond to a FINRA request for information regarding his compliance status. This is a serious violation of the rules and regulations set forth by FINRA.
The specific FINRA rule violated in this case is Rule 9554. According to Article VI, Section 3 of the FINRA By-Laws, and Rule 9554, a member or associated person may be suspended if they fail to comply with an arbitration award or settlement agreement, or fail to respond satisfactorily to a FINRA request for information concerning the status of compliance.
Why It Matters for Investors
Investors should be aware of the seriousness of these allegations. A financial advisor’s failure to comply with an arbitration award or settlement agreement can result in financial losses for investors. Furthermore, a lack of transparency and failure to respond to regulatory requests for information can undermine investor trust and confidence.
Investors who have suffered losses due to the actions of Louis Pellegriti or Spartan Capital Securities, LLC should seek legal advice. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this case. The firm offers free consultations to clients and operates on a “No Recovery, No Fee” policy. Investors can reach out to them at their toll-free consultation number, 1-800-856-3352.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be vigilant for red flags indicating financial advisor malpractice. These can include failure to comply with arbitration awards or settlement agreements, lack of transparency, and failure to respond to regulatory requests for information.
If investors suspect they have been victims of investment fraud or malpractice, they should seek legal help immediately. Haselkorn & Thibaut specializes in helping investors recover their losses through FINRA arbitration. With over 50 years of experience and a 98% success rate, they have successfully recovered financial losses for many investors.
Investors who have suffered losses due to the actions of Louis Pellegriti or Spartan Capital Securities, LLC can contact Haselkorn & Thibaut for a free consultation at 1-800-856-3352.
