Alex Williams (CRD# 2646185), a broker and investment adviser based in New York, has received a pending customer complaint. According...Read More
Seth Nannini: FINRA Suspends Capital Investment Group Broker
A disciplinary action taken by the Financial Industry Regulatory Authority against Charlotte and Boone, North Carolina broker Seth Nannini (CRD# Nanniniwas suspended for four months and ordered to pay restitution of $7,500.) suspended him over allegations he engaged in unapproved private securities transactions. A representative of Capital Investment Group,
According to a Letter of Acceptance, Waiver and Consent () dated December 2018, Seth Nannini was associated with Capital Investment Group when, between March 2010 and 2011, he was involved in seven private securities transactions for which he did not provide his firm with written notice. FINRA’s findings state specifically that he solicited two customer’s investments in a biotechnology manufacturing company. He allegedly facilitated the customers’ investments when he gave them information about it, organized a visit for one of them to its facility, aided fund transfers, and gave the customers updates about the company following their investments. FINRA’s findings state that the customers’ investments totaled $290,000, and that he “routed one of the customers’ funds from the customer’s Firm account through an IRA account outside of the Firm before investing the funds” in the biotech company, allegedly making it “more difficult” for Capital Investment Group to detect the customer’s investment in the outside company.
FINRA’s findings go on to state that the biotechnology company filed for bankruptcy before it made payments to either of Seth Nannini’s customers, causing one of them to lose “all of the money she invested” in it,” although she later reached an arbitration settlement of $72,500. The second customer, according to FINRA, only recovered $788 of his invested $70,000. FINRA also states that Nannini himself bought 1,500 shares in the biotechnology company’s stock, although he did not give his firm prior written notice of such. He also allegedly provided the company with two compliance questionnaires during the period in question that contained erroneous statements that he “had not engaged in any private securities transactions.”
FINRA’s findings conclude that Nannini’s activities constituted violations of NASD Rule 3040 and FINRA Rule 2010. As a result of the foregoing alleged conduct, he was suspended from associating with any FINRA member in any capacity for four months. He was also ordered to pay $7,500 in restitution to one customer.
Seth Nannini has been registered as a broker with Capital Investment Group in Charlotte and Boone, North Carolina since 2006. His employment history includes MML Investors Services, Equity Services, Veravest Investments, and Morgan Stanley DW. He currently holds eight state licenses and has passed four securities industry qualification examinations.