Richard Joseph Monello – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Richard Joseph Monello.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Richard Joseph Monello. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Richard Monello
Richard Joseph Monello is an Investment Adviser. Richard Joseph Monello’s Central Registration Depository (CRD) number is 1644006 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1644006.
Click here to download a Detailed Audit Report for Richard Joseph Monello.
Richard Joseph Monello has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Richard Joseph Monello’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 12/18/2003
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C06030035
- DocketNumberAAO: 06030035
- Initiated By: NASD
- Allegations: NASD CONDUCT RULE 2110, 3010(A) AND 3010(B) AND SEC RULE 15C3-1 – RESPONDENT MONELLO, ACTING ON BEHALF OF HIS MEMBER FIRM, ENGAGED IN A SECURITIES BUISNESS WHILE FAILING TO MAINTAIN SUFFICIENT NET CAPITAL; FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM TO SUPERVISE THE TRADING ACTIVITIES OF AN INDIVIDUAL; AND, FAILED TO ESTABLISH, MAINTAIN AND ENFORCE REASONABLE WRITTEN SUPERVISORY PROCEDURES DESIGNED TO ENSURE HIS MEMBER FIRM’S COMPLIANCE WITH ALL ASPECTS OF NASD TRADE REPORTING RULES.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Suspension
- Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER FIRM IN ANY PRINCIPAL OR SUPERVISORY CAPACITY FOR THREE MONTHS. THE SUSPENSION EFFECTIVE WITH THE OPENING OF BUSINESS ON MAY 3, 2004, AND END ON AUGUST 2, 2004.
- Broker Comment: MONELLO WAS PRESIDENT AND GENERAL SECURITIES PRINCIPAL OF RICHMARK. MONELLO LATER SOLD HIS SHARE IN THE FIRM TO THE REMAINING SHAREHOLDERS AND TERMINATED HIS REGISTRATION. AFTER MONELLO’S DEPARTURE, A ROUTINE EXAMINATION WAS CONDUCTED BY NASD DISTRICT 6. IT WAS THE DISTRICTS DETERMINATION THAT RULES VIOLATIONS OCCURRED DURING MONELLO’S SUPERVISORY TENURE AND THUS FILED A COMPLAINT WITHIN 2 YEARS OF MONELLO’S TERMINATION OF REGISTRATION.
DISCLOSURE 2 –
- Event Date: 9/3/2002
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: CAF020031
- DocketNumberAAO: 020031
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Allegations: NASD RULES 2110, 3010 – WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT CONSENTED TO THE ENTRY OF FINDINGS THAT, AS THE DIRECT SUPERVISOR OF A BRANCH OFFICE OF A MEMBER FIRM, FAILED TO TAKE ACTION TO SUPERVISE A REPRESENTATIVE WITH REGARD TO MATERIALS POSTED ON WEBSITES AND FAILED TO APPROVE BEFORE USE MATERIAL POSTED ON THE WEBSITES THAT WAS MISLEADING AND MADE UNWARRANTED, EXAGGERTED CLAIMS AND COMPARISONS THAT WERE WITHOUT SUPPORT.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Suspension
- Sanction Details: SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY PRINCIPAL OR SUPERVISORY CAPACITY FOR TWO WEEKS. SUSPENSION EFFECTIVE OCTOBER 7, 2002 TO CLOSE OF BUSINESS OCTOBER 20, 2002.
DISCLOSURE 3 –
- Event Date: 6/22/2000
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: ASSULT IN THE SECOND DEGREE DV, ONE COUNT, A FELONY, PLED GUILTY TO A CHARGE OF ASSAULT IN THE FOURTH DEGREE DV, A MISDEMEANOR, NOT INVESTMENT RELATED.
- Charge Type: FELONY
- Disposition: FELONY CHARGE REDUCED TO MISDEMEANOR, PLED GUILTY ON 9/15/00. ON 10/6/00 WAS GIVEN DEFERRED SENTENCE, 12 MONTHS PROBATION, $500. FINE. WHEN PROBATION IS SATISFACTORILY SERVED, CHARGE WILL BE DISMISSED. MR. MONELLO RECEIVED ON APRIL 4, 2002 A COURT DOCUMENT NO.00-1-071678SEA ORDER PERMITTING WITHDRAWAL OF PLEA OF GUILTY & DISMISSAL OF CHARGES THE COURT ORDERED THAT DEFENDANT’S PLEA OF GUILTY BE AND IS HEREBY WITHDRAWN AND ITS FURTHER ORDERED THE CHARGES OF ASSULT IN THE FOURTH DEGREE BE AND IS HEREBY DISMISSED WITH PREJUDICE. SIGNED BY JUDGE RONALD J. MELTZER.
- Broker Comment: I WAS IN SEATTLE WITH MY FIANCE ON BUSINESS. I RETURNED TO THE HOTEL FROM WORK AND WAS ATTACKED BY HER. SHE HAD BEEN DRINKING. I RESTRAINED HER FROM HURTING ME. SHE INJURED A FINGER AND RAN FROM THE HOTEL ROOM. I WAS ARRESTED FOR DOMESTIC BATTERY. NO CHARGES AGAINST HER. WASHINGTON STATE LAW DOES NOT ALLOW RECISION BY OTHER PARTY. I PLED GUILTY TO A MISDEMEANOR CHARGE TO AVOID POSSIBLE CONVICTION OF FELONY.
DISCLOSURE 4 –
- Event Date: 7/16/1996
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C8B960021
- DocketNumberAAO: 8960021
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $5,000.00 Sanctions: Censure Sanctions: Suspension
- Broker Comment: I NEVER SET THE MARK-UP OR MARK-DOWN ON PRICES. I AGREED TO A AWC TO AVOID LEGAL COST AND TO GET ON WITH MY LIFE. I DID NOTHING WRONG AND DID NOT VIOLATE ANY RULES OF THE NASD.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- AVALON INVESTMENT & SECURITIES GROUP, INC. (CRD#: 6281) :: 12/5/2011 – 12/31/2013 :: MUSCLE SHOALS, AL
- CRESCENT SECURITIES GROUP, INC. (CRD#: 114993) :: 9/4/2008 – 1/7/2010 :: PLANO, TX
- CAC CAPITAL CORP (CRD#: 15396) :: 7/26/2006 – 9/28/2006 :: DALLAS, TX
- FIRST MIDWEST SECURITIES, INC. (CRD#: 21786) :: 3/31/2004 – 9/7/2004 :: BLOOMINGTON, IL
- RICHMARK CAPITAL CORPORATION (CRD#: 43162) :: 7/23/1997 – 3/11/2002 :: IRVING, TX
- LLOYD WADE SECURITIES INC. (CRD#: 39653) :: 6/7/1996 – 4/25/1997 :: DALLAS, TX
- FIRST MONTAUK SECURITIES CORP. (CRD#: 13755) :: 7/13/1995 – 6/10/1996 :: RED BANK, NJ
- STRATEGIC RESOURCE MANAGEMENT, INC. (CRD#: 28974) :: 3/27/1995 – 7/11/1995 :: AURORA, CO
- W.B. MCKEE SECURITIES, INC. (CRD#: 27968) :: 1/11/1994 – 3/29/1995 :: SCOTTSDALE, AZ
- CORPORATE SECURITIES GROUP, INC. (CRD#: 11025) :: 1/1/1994 – 2/9/1994 :: ST. LOUIS, MO
- THOMAS JAMES ASSOCIATES, INC. (CRD#: 15609) :: 5/5/1989 – 1/1/1994 :: ROCHESTER, NY
- TRAVELERS EQUITIES SALES, INC. (CRD#: 833) :: 7/28/1988 – 5/31/1989
- LIBERTY SECURITIES CORPORATION (CRD#: 14416) :: 9/24/1987 – 5/10/1988
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Richard Joseph Monello, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Richard Monello
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Richard Joseph Monello – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (1644006) for the broker – Richard Joseph Monello
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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