Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Frank Vecchio (Vecchio), previously associated with Newbridge Securities Corporation, has at least one disclosable event. These events include one tax lien, alleging that Vecchio recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on September 12, 2024.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Frank M. Vecchio (‘Respondent’). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept. The commission finds that in or around August 2018, Vecchio was hired as a sales agent by StraightPath Venture Partners LLC (the ‘SP Fund Manager’) to solicit investments in unregistered membership interests in limited liability companies (the ‘SP Funds’) that purportedly owned shares of private companies that had prospects of going public through initial public offerings (‘IPOs’). On September 10, 2024, a final judgment was entered by consent against Vecchio, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 (‘Securities Act’), and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Scott J. Hollender, et al., Civil Action Number 23 Civ. 2456, in the United States District Court for the Southern District of New York. The Commission’s complaint alleged that, despite being paid 10 percent upfront fees, Vecchio told investors he solicited on behalf of the SP Funds that there were no upfront fees and that the only way he or the SP Fund Manager earned any money was via backend fees on any profits earned by the investors on the pre-IPO shares after an IPO occurred, and that Vecchio knew or recklessly disregarded that these representations were false or misleading. The Commission’s complaint also alleged that while actively soliciting investors on behalf of the SP Funds, Vecchio was not registered with the Commission as a broker-dealer or associated with a Commission registered broker-dealer.