Securities Lawyers Blog
The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that David John Melilli (Melilli), formerly employed by Capstone Financial LLC, has been subject to at least three customer complaints during his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Melilli’s customer complaints allege that Melilli engaged in unauthorized trading and recommended unsuitable investments.
In April 2021, FINRA made a preliminary determination to recommend that disciplinary action be brought against Melilli for various allegations. These include unsuitable and excessive trading in customer accounts, using discretion without written authorization in customer accounts, unauthorized trading in the account of a deceased customer, forging customer signatures on account documents and causing member firm to maintain inaccurate books and records, sending written communication entitled “Writing Covered Calls” to customer without obtaining prior approval from member firm and use of a misleading communication with a customer, using text messages to conduct securities related business in violation of applicable firm policies and causing firms to fail to maintain accurate books and records, and opening and maintaining multiple outside securities accounts without the prior consent of member firms. Investigation is pending concerning these allegations.
In September 2020, a customer complained that Melilli violated the securities laws by alleging that Melilli engaged in authorized trading. The claim alleges $5,000 in damages and is currently pending.
Also in September 2020, a customer complained that Melilli violated the securities laws by alleging that Melilli made risky investments that were not fully understood and that management fees may not have been assessed correctly. The claim was denied.