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Options for Clients of Madison Avenue Securities, LLC Broker Vincent Virga

Posted on Tuesday, September 28th, 2021 at 12:11 am    

Madison Avenue Securities, LLC

Were you the victim of Madison Avenue Securities, LLC broker Vincent Virga (CRD# 5070668)? Virga was registered with Madison Avenue Securities, LLC in Bayonne, New Jersey from 2009 to 2021.

In December 2020, FINRA suspended Virga for one month and sanctioned him to pay a $5,000 civil and administrative penalty and fine and $19,687 in restitution. According to FINRA, “Virga consented to the sanctions and to the entry of findings that he recommended that a customer purchase $480,000 in mutual funds, but failed disclose to the customer available cost savings, including those provided through rights of accumulation, breakpoint levels, and choosing to purchase mutual funds in the same fund family. The findings stated that based on Virga’s recommendations, a retired customer invested in six mutual funds in five different fund families. The customer paid $80,000 for each mutual fund investment, totaling $480,000. These investments were part of a larger investment plan that Virga had recommended for the customer. Although the customer received some breakpoint discounts for the mutual funds purchased, he still paid $19,687 in sales charges (fees and commissions). Virga failed to disclose to the customer available cost savings based on a right of accumulation arising from the customer’s existing mutual fund investments held at another broker-dealer firm, of which Virga was aware, or should have been aware. Further, Virga failed to disclose to the customer that even greater cost savings were available, including, potentially, paying no sales charges whatsoever, if the customer purchased mutual funds in one or two fund families, such as the fund family in which the customer was already invested at the other broker-dealer firm.”

Virga has been the subject of one customer complaint, according to his CRD report:

June 2021. “Claimants allege unsuitable recommendations of multiple alternative investments in 2015, failure to supervise.” The customer is seeking $495,000 in damages and the case is currently pending. The complaint was regarding direct investments and LP interests.

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, Madison Avenue Securities, LLC may be liable for investment or other losses suffered by Virga’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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.