Anthony Pellegrino – Fraud Recommendations, Fined by SEC (Update 2023)
Anthony Pellegrino is the owner of Goldstone Financial Group, a financial planning firm fined by the SEC in March 2022 for its shady practices.
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According to the Securities and Exchange Commission, the financial advisory firm had taken part in ‘unregistered transactions’ with one of their fraudulent clients and failed to disclose the fees they earned.
Anthony Pellegrino used to run Goldstone Financial Group with its co-founder Michael Pellegrino. However, the SEC barred Michael while only censuring and finning Anthony for their shady deals.
The following review is for consumers and investors interested in the services of Goldstone Financial Group so they can make a well-informed decision:
Fines, Censures and Bars – SEC’s Regulatory Action against Michael and Anthony Pellegrino
According to the SEC, Michael and Anthony Pellegrino of Goldstone Financial Group had received around $1.6 million in fees from 1 Global. They received this payment for selling their securities.
Also, their rate of charging this fee was 4.3%, a rate significantly higher than the industry standard of 1%.
Michael and Anthony Pellegrino as well as Goldstone settled this matter with the SEC without admitting or denying their findings.
Furthermore, the SEC had ordered Goldstone Financial Group to pay a $70,000 penalty and hire an independent compliance advisor.
The Securities and Exchange Commission had investigated a $283 million loan fraud which occurred in 2018. This multi-million fraudulent deal happened through a vast network of unregistered brokers and financial advisors.
1 Global Capital was one of those unregulated promoters. It offered small business loans to different consumers and enterprises as direct merchant cash advances. Also, their offered loans were in the form of unsecured, short-team commercial financing.
Furthermore, the SEC shared that 1 Global had marketed its unregulated investments as a safe and secure alternative to the stock market. Moreover, they made the baseless claim that investing in their cash advance business would deliver high single-digit or low double-digit annual returns.
The SEC highlighted that 1 Global had misrepresented how it was using investor money. They siphoned off the investor funds to fund the luxury lifestyle of their chairman, Carl Ruderman.
Also, the illegal operation stopped when the company filed for bankruptcy in July 2018.
The SEC’s charges highlight that Michael and Anthony Pellegrino had repeated the misrepresentational claims of 1 Global to prospective investors. However, it’s worth pointing out that Anthony claims to be unaware of the fraudulent nature of 1 Global and its offerings.
Alarming Disclosures Against Anthony Pellegrino:
The case I mentioned above resulted in a Cease and Desist order by the SEC for Anthony Pellegrino along with a fine of $30,000.
It is now marked as a Disclosure on the BrokerCheck profile of this financial advisor.
While it is the most recent disclosure in Anthony’s profile, it’s not the only time the leader of Goldstone Financial Group has faced regulatory action.
His profile has another disclosure dating back to 2019.
It was initiated by the Idaho Department of Finance. Apparently, Anthony Pellegrino had recommended the purchase of an unregistered security to his client/s.
The disclosure reveals that he had violated Idaho code §30-14-502(a)(2) by making an unsuitable recommendation in violation of IDAPA 12.01.08.104.04b.
As a result, he faced a civil and administrative penalty of $10,000.
While many financial advisors face small disputes, they rarely face penalties as stringent as this one. Moreover, considering how Anthony has faced multiple complaints and sanctions, it’s evident that he is not as reliable as he claims to be.
There are plenty of financial advisors in the industry with much better track records.
After going through the above points, it’s clear that Anthony Pellegrino is not a trustworthy financial advisory. You should avoid dealing with him and his firm Goldstone Financial Group.
It’s best to only deal with financial advisors who don’t have any disclosures on their profiles. Furthermore, the fact that Anthony promoted a fraudulent security as a reliable one indicates that neither he nor his company, Goldstone Financial Group, perform due diligence properly.
Hence, it would be best to avoid them.
Anthony Pellegrino of Goldstone Financial Group has multiple disclosures on his BrokerCheck profile. Moreover, he was fined after he promoted a fraudulent security to his clients. Beware.
- Fined for promoting a fraudulent security in 2022
- Has a history making unsuitable recommendations
- Was involved in a multi-million scam