FSC Securities Corporation Financial Advisor Justin Zegalia Barred by FINRA
Posted on Friday, June 23rd, 2017 at 3:09 pm
Erez Law is currently investigating former FSC Securities Corporation financial advisor Justin Zegalia (CRD# 4133578) regarding bank fraud and a fraudulent investment fund. Zegalia was employed with Roosevelt Equity in Charlotte, North Carolina from September 2011 to August 2012. Previously, he was registered with FSC Securities Corporation in McDonough, Georgia from 2007 to 2010.
In January 2014, Zegalia was barred by FINRA from association with any FINRA member in any capacity, after he failed to respond to a request for information. “Respondent failed to request termination of his suspension within three months of the date of the notice of intent to suspend; therefore, he is automatically barred from association with any finra member in any capacity,” according to his CRD.
It is alleged that Zegalia and other financial advisors at FSC Securities Corporation in McDonough, Georgia sold the unregistered and illegal PFG Investment Fund. PFG filed for bankruptcy to liquidate under Chapter 7 of the U.S. bankruptcy code in July 2012. At the time of bankruptcy, it was estimated that PFG had between $500 million and $1 billion of assets, between $150 Million and $500 million of liabilities, and between 10,000 and 25,000 creditors, according to Reuters. In January 2013, the PFG CEO Russell R. Wasendorf, Sr. was sentenced to 50 years in federal prison for fraud, embezzlement, and lying to regulators, according to the Federal Bureau of Investigation (FBI). Wasendorf stole more than $215,000,000 in customer funds from his commodity futures business.
Zegalia has also been the subject of five customer complaints, two of which were denied, according to his CRD report:
September 2014. “Alleged to have facilitated investment that was not approved by the firm.” The client sought $985,000 in damages and was granted damages in the amount of $1,282,559.
September 2012. “Alleged to have promoted investment that was not approved by firm.” The customer is seeking $4,613,555 in damages and the case is currently pending.
May 2012. “Participation in sale of unapproved securities/misrepresentation.” The client sought $1,768,298 in damages and was granted damages in the amount of $845,000.
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, FSC Securities Corporation may be liable for investment or other losses suffered by Zegalia’s customers.
Erez Law represents investors in the United States for claims against FSC Securities Corporation financial advisor Justin Zegalia regarding bank fraud and a fraudulent investment fund. If you were a client of FSC Securities Corporation financial advisor Justin Zegalia 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.