Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Michael Conte (Conte) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Conte was employed by Fusion Analytics Securities LLC at the time of the activity. If you have been a victim of Conte’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on October 05, 2022.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (‘Exchange Act’) and Section 203(f) of the Investment Advisers Act of 1940 (‘Advisers Act’) against Michael J. Conte (‘Respondent’). The Commission finds that on September 29, 2022, a final judgment was entered by consent against Conte, permanently enjoining him from future violations of Section 17(a)(2) and 17(a)(3) of the Securities Act of 1933 and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Fusion Analytics Investment Partners, LLC, Civil Action Number 0:21-cv-61721, in the United States District Court for the Southern District of Florida. The Commission’s complaint alleged that from 2010 to 2016, Conte, through two entities he controlled-FAIP and FAIP’s holding company, Fusion Analytics Holdings, LLC (‘Fusion Holdings’)-raised approximately $1.4 million for FAIP through the offer and sale of promissory notes to 10 individual retail investors and advisory clients, most of whom were retired and elderly, without disclosing material facts regarding FAIP’s declining financial condition. Fusion Holdings defaulted on most of the notes, and Conte renegotiated many of the notes without fully disclosing FAIP’s continuing financial decline.
FINRA BrokerCheck shows a final customer complaint on October 18, 2021.
Without admitting or denying the findings, Conte consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation into potential misrepresentations made in the participation in and supervision of the sale of multiple private offerings of bonds.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $499,000.00 on September 21, 2021.
Conte was named in a customer complaint that asserted the following causes of action: breach of fiduciary duty; negligent supervision and failure to supervise; unsuitability; and negligence.
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. The sale of unapproved investment products, fake investments that cover misappropriated funds, and other fraudulent behavior – is a practice known in the industry as “selling away” – a serious violation of the securities laws. “Selling away” is the term used in the industry when a financial advisor solicits investments in companies, promissory notes, or securities without obtaining approval from their affiliated brokerage firm. While some of these investments may have a degree of legitimacy, they often turn out to be Ponzi schemes or involve advisors misappropriating funds.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Conte has been in the securities industry for more than 23 years. Conte has been registered as a Broker with Fusion Analytics Securities LLC since 2007.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.