A recent investor complaint disclosed on Jamestown, North Dakota financial advisor Paul Witthauer’s (CRD# 1672263) BrokerCheck report concerns allegations regarding...Read More
Thomas Diamante: FINRA Investigates SW Financial Advisor
The Financial Industry Regulatory Authority is investigating Melville, New York broker Thomas Diamante (CRD# 1645257). FINRA records show that the SW Financial representative allegedly made misrepresentations and engaged in fraud, though he denies the allegations.
According to a disclosure on his BrokerCheck report, in February 2022 FINRA arrived at a “preliminary determination” to recommend disciplinary action against Mr. Diamante. The action would allege that he violated FINRA Rule 2010 and the Securities Act of 1933 by obtaining money in the offering or sale of securities by misrepresenting and omitting material facts. He additionally engaged in those violations, FINRA would allege, by engaging “in a transaction, practice, or course of business which operated as a fraud or deceit upon the purchasers.” FINRA would allege further that he violated FINRA Rules 3110 and 2010 by failing to enforce a reasonable supervisory system over the sales of private placement offerings. For reference, FINRA Rule 2010 requires brokers to “observe high standards of commercial honor and just and equitable principles of trade” in the course of business. FINRA Rule 3110, meanwhile, provides for the reasonable supervision of brokers.
In a comment on the disclosure regarding FINRA’s determination to bring disciplinary action against him, Mr. Diamante denies the allegations. “At no time did he ever obtain money in the offer and sale of securities,” he wrote, continuing: “His firm was the placement agent engaged in a best efforts offering which received the compensation, as with every firm on Wall Street. He earned a salary as CEO of the firm and took no part of the sales compensation. After paying overhead, such as rent and salaries, clearing firm, FINRA fees, accounting and legal fees, the firm either made a profit or loss, which would be allocated to members according to their proportionate ownership.”
According to the Financial Industry Regulatory Authority, Thomas Diamante holds 30 years of securities industry experience. Based in Melville, New York, he has been a representative of SW Financial since 2008. His past registrations include Empire Financial Group, Atlas Capital Services, Paulson Investment Company, Schneider Securities, Investors Associates, Sharpe Capital, Investors Associates, NYLife Securities, JT Moran & Company, and the Stuart-James Company. His credentials include the passage of four securities industry qualifying exams: the General Securities Principal Examination, or Series 24; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He is licensed in New York. (Information current as of May 25, 2022.)
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