John Cangialosi: NYC Broker Suspended Over Unsuitable Trades

New York City stockbroker John Cangialosi (CRD# 3273830), was recently sanctioned by the Financial Industry Regulatory Authority over findings of unsuitable trading in customer accounts. The SW Financial representative was fined and temporarily suspended from associating with FINRA member firms.

According to a Letter of Acceptance, Waiver and Consent (No. 2017056432605) released in August 2021, a FINRA probe found that John Cangialosi “engaged in quantitatively unsuitable trading in three customer accounts” between October 2014 and December 2018. FINRA’s findings state specifically that he recommended high-frequency trading in the accounts, resulting in the customers “often holding concentrated positions in one or two securities of short periods of time.” Because his customers “routinely” followed his recommendations, FINRA concluded that Mr. Cangialosi held “de facto control” over their accounts. The findings state that his trading in one customer’s account generated $173,337 in total trading costs and $279,803 in realized losses; his trading in a second customer’s account resulted in $116,442 in total trading costs and $93,834 in realized losses; and his trading in a third customer’s account resulted in $21,450 in trading costs and $31,618 in realized losses. 

The AWC Letter states that Mr. Cangialosi’s trades were “excessive and unsuitable given the customers’ investment profiles,” causing them to suffer $405,225 in aggregate losses and $311,229 in costs. As a result of these findings, FINRA concluded that he violated FINRA Rules 2111 and 2010. The agency issued Mr. Cangialosi a nine-month suspension from associating with any FINRA member firm in any capacity, while ordering him to pay a fine of $7,500 and restitution of $271,662.

Following the August 2021 FINRA sanction, John Cangialosi was also sanctioned by the Maryland Securities Division in connection to the FINRA action. He was censured and agreed to withdraw his registration application in the state and not to reapply as an agent or investment adviser representative in it.

According to the Financial Industry Regulatory Authority, John Cangialosi holds 19 years of securities industry experience. He has been registered with SW Financial in New York City since December 2019, though he is currently under suspension. His previous registrations include Worden Capital Management (2016-2019), Legend Securities (2013-2016), Joseph Gunnar & Company (2012-2013), Brookstone Securities (2009-2012), JP Turner & Company (2006-2009), Gunnallen Financial (2004-2006), and Joseph Stevens & Company (2001-2004), all in New York City. His credentials include the passage of three securities industry qualification examinations: the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; and the General Securities Representative Examination, or Series 7. He presently holds 18 state licenses. (Information accessed on January 6, 2022.)

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