Network 1 Financial Securities Inc. Tag Archives

Broker Michael Molinaro in Network 1 Financial Securities Inc. Firm Has Customer Complaint

March 25, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Michael Molinaro (Molinaro), currently associated with Network 1 Financial Securities Inc., has at least 2 disclosable events. These events include 2 tax liens, alleging that Molinaro recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on March 04, 2025.

Without admitting or denying the findings, the firm and Molinaro consented to the sanction and to the entry of findings that they developed and implemented an AML compliance program (AMLCP) that was not reasonably designed to achieve compliance with the requirements of the Bank Secrecy Act (BSA) and its implementing regulations. The findings stated that the firm’s Customer Identification Program (CIP) was not reasonably designed to verify the identity of foreign customers opening accounts at the firm who did not appear in person at the firm or to reasonably verify the identity of many customers who opened accounts to invest in initial public offerings (IPOs) for small-cap issuers. In addition, the firm and Molinaro did not establish and implement policies and procedures that could be reasonably expected to detect and cause the reporting of suspicious transactions concerning the firm’s investment banking business. As a result of these deficiencies, the firm did not detect or reasonably investigate AML red flags across multiple areas of its investment banking business. Molinaro was designated as the firm’s AMLCO and was responsible for all aspects of its AML program. Despite having knowledge of the AML red flags, Molinaro never conducted an AML investigation concerning any of this activity.

There are Recent Customer Complaints with Broker Sean Mccabe in Firm Network 1 Financial Securities Inc.

February 21, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Sean Mccabe (Mccabe), currently associated with Network 1 Financial Securities Inc., has at least 3 disclosable events. These events include 2 customer complaints, one tax lien, alleging that Mccabe recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on December 11, 2024.

Without admitting or denying the findings, McCabe consented to the sanctions and to the entry of findings that he excessively and unsuitably traded a customer’s account. The findings stated that McCabe recommended high frequency in-and-out trading to the customer, including recommending that the customer sell a position he had recently opened even when the price of the security had not materially changed. The customer, a dairy farmer in his late fifties with a speculative risk tolerance, relied on McCabe’s advice and routinely followed his recommendations. As a result, McCabe exercised de facto control over the customer’s account. McCabe’s trading in the customer’s account generated $19,275 in commissions and caused $57,445 in realized losses.

Broker Vincent Labarbara in Network 1 Financial Securities Inc. Firm Has Customer Complaint

February 18, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Vincent Labarbara (Labarbara), currently associated with Network 1 Financial Securities Inc., has at least one disclosable event. These events include one tax lien, alleging that Labarbara recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on December 30, 2024.

5,000 and suspended from association with any FINRA member in all capacities for two months. Without admitting or denying the findings, LaBarbara consented to the sanctions and to the entry of findings that he entered into a lending arrangement with one of his customers without providing notice to or obtaining prior written approval from his member firm. The findings stated that one of LaBarbara’s customers, who was a long-time friend and real estate lawyer, offered to assist LaBarbara with a home purchase. LaBarbara’s customer obtained a mortgage, the funds of which were used to make the home purchase on LaBarbara’s behalf. In return, LaBarbara agreed to make all payments due on the customer’s mortgage. LaBarbara’s customer transferred title to the house to LaBarbara after about two years and the amount due on the mortgage was approximately $300,000. LaBarbara has timely made all payments due on the mortgage.