Goldstone Financial Lawsuit: What Happened and What to Know
Goldstone Financial Group, L.L.C. is an investment advisory services firm in the United States. In 2018, the Securities and Exchange Commission (SEC) charged Goldstone and its two principals, Anthony Pellegrino and Michael Pellegrino, with violating federal securities laws by recommending unregistered securities to clients.
The SEC alleged that Goldstone recommended unregistered securities issued by 1 Global Capital, a fraudulent investment scheme that raised more than $320 million from investors. The SEC also alleged that Goldstone failed to disclose to clients that it was receiving referral fees from 1 Global.
Goldstone and the Pellegrino brothers settled the SEC’s charges without admitting or denying wrongdoing. Anthony Pellegrino was barred from the securities industry, while Michael Pellegrino was suspended from the industry for one year. Goldstone was also required to pay a civil penalty of $70,000.
What to Know
If you were a client of Goldstone Financial Group and invested in 1 Global Capital securities, you may be eligible to recover your losses. You should contact a securities attorney to discuss your legal options.
FAQs
Q: What is a securities fraud lawsuit?
A: A securities fraud lawsuit is a legal action filed against a person or company that has violated federal securities laws. Securities fraud lawsuits can be filed by individual investors, groups of investors, or the SEC.
Q: What are the grounds for a securities fraud lawsuit?
A: There are many different grounds for a securities fraud lawsuit. Some common examples include:
- Misrepresentation or omission of material information
- Insider trading
- Manipulation of the stock market
- Unregistered securities offerings
Q: What are the damages available in a securities fraud lawsuit?
A: The damages available in a securities fraud lawsuit can vary depending on the specific facts of the case. However, common types of damages include:
- Out-of-pocket losses
- Rescission of the investment
- Punitive damages
Q: How long do I have to file a securities fraud lawsuit?
A: The statute of limitations for securities fraud lawsuits varies from state to state. However, it is generally two to three years from the date of the alleged fraud.
Q: How do I find a securities attorney?
A: You can find a securities attorney by searching online or by contacting your state bar association.
Q: What should I do if I think I have been a victim of securities fraud?
A: If you think you have been a victim of securities fraud, you should contact a securities attorney to discuss your legal options.
Conclusion
The Goldstone Financial lawsuit is a reminder of the importance of investing with caution and doing your research before investing in any security. If you are considering investing with a financial advisor, be sure to check with the SEC to see if the advisor is registered and has any disciplinary history.
If you have already invested with a financial advisor and you are concerned about your investments, you should contact the advisor to discuss your concerns. You may also want to consider contacting a securities attorney to discuss your legal options.
References:
- SEC Charges Investment Advisers with Recommending Unregistered Securities: https://www.sec.gov/litigation/admin/2018/33-10516.pdf
- SEC Bars Investment Adviser in 1 Global Capital Fraud: https://www.sec.gov/news/press-release/2018-133
- Goldstone Financial Group, LLC, Anthony Pellegrino and Michael Pellegrino: https://www.sec.gov/files/litigation/admin/2022/33-11045.pdf
Goldstone Financial Group, L.L.C. is an investment advisory services firm in the United States. In 2018, the Securities and Exchange Commission (SEC) charged Goldstone and its two principals, Anthony Pellegrino and Michael Pellegrino, with violating federal securities laws by recommending unregistered securities to clients. The SEC alleged that Goldstone recommended unregistered securities issued by 1…