Erez Law is currently investigating former Primary Capital, LLC financial advisor Christopher Cervino (CRD# 2778817) regarding securities and investment fraud. Cervino was registered with the following firms during the past few years:
- Primary Capital, LLC in New York, New York (October 2014 to January 2016)
- COR Clearing LLC in Edison, New Jersey (July 2012 to August 2013)
- Wilson-Davis & Co., Inc. in Salt Lake City, Utah (July 2012 to August 2013)
- Delaney Equity Group LLC in Palm Beach Gardens, Florida (September to December 2011)
- GFI Securities LLC in New York, New York (September 2010 to October 2011) (Crd#:19982)
- Cervino was terminated from Primary Capital LLC regarding, “Christopher was charged with securities fraud, wire fraud and perjury.” He was also terminated from COR Clearing LLC regarding, “Mr. Cervino entered unauthorized trades in a customer’s account.”
In May 2017, the Securities and Exchange Commission (SEC) barred Cervino from acting as a broker or investment adviser or otherwise associating with firms that sell securities or provide investment advice to the public. The SEC charged Cervino with committing securities fraud by scheming to control and manipulate the public market, to inflate the price and increase the trading volume of a stock, and to induce investors to invest in private shares of a stock through false and misleading statements.
According to the Securities and Exchange Commission, Edward Durante was charged with defrauding at least 50 unsophisticated investors in New England, Ohio and California of at least $11 million through the sale of securities of VGTel, Inc., a shell company he controlled. The SEC complaint alleges that Durante sold approximately six million shares of the VGTel stock using a false name, and Durante bribed Werbel and others to encourage their clients to purchase VGTel stock without disclosing to the customers that they had been bribed. Additionally, Durante engaged in matched trading of VGTel stock with Cervino to artificially control the stock’s market price, and Cervino received substantial commissions for executing trades in the stocks.
As part of this scheme, the VGTel stock increased from $.25 per share in April 2012 to $1.90 and inflated the trading volume, which increased their ability to raise private investments in the stock.
Additionally, there are pending felony criminal charges against Cervino, including Manipulative And Deceptive Devices (Securities Fraud); Perjury Generally; Conspiracy To Commit Securities Fraud; Fraud By Wire, Radio, Or Television; and Attempt And Conspiracy To Commit Wire Fraud. Cervino faces 20 years in prison.
Cervino has been the subject of one customer complaint, according to the CRD report:
August 2016. “The Statement of Claim primarily alleges claims against several of the Claimants’ former financial advisors, including Christopher Cervino for advising Claimants to invest in and maintain what are claimed to be valueless securities and further alleges that these advisors perpetrated a fraud that resulted in losses to Claimants. The allegations of wrongdoing appear to cover a time period from October 2010 to December 2013.” The customer is seeking $778,119 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Primary Capital, LLC may be liable for investment or other losses suffered by Cervino’s customers.
Erez Law represents investors in the United States for claims against former Primary Capital, LLC financial advisor Christopher Cervino regarding securities and investment fraud. If you were a client of former Primary Capital, LLC or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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