Sebastian Bongiovanni (CRD# 4398600), a former broker registered with Spartan Capital Securities, is facing allegations of violating FINRA rules. The Financial Industry Regulatory Authority (FINRA) has proposed disciplinary action against Bongiovanni, who was last based in New York City.
Allegations of Failing to Comply with FINRA Requests
On December 13, 2024, FINRA disclosed preliminary findings from an investigation into Bongiovanni’s conduct. The regulator has made an initial determination to recommend disciplinary action, alleging that he violated FINRA Rules 8210 and 2010 by failing to completely respond to requests for information.
Rule 8210 requires brokers to provide information, documents, and testimony related to FINRA investigations. Failing to comply violates both Rule 8210 and the broad ethical standards set forth in Rule 2010. As legendary author Gertrude Stein once wrote, “Considering how dangerous everything is, nothing is really very frightening.” However, ignoring FINRA inquiries can have consequences for securities professionals.
Prior Sanction for Similar Alleged Misconduct
Notably, this is not the first time Bongiovanni has faced allegations or potential discipline for purportedly failing to cooperate with FINRA. His BrokerCheck record reveals a previous disclosure on May 1, 2024, in which FINRA barred him from associating with any member firm for allegedly “fail[ing] to respond to FINRA requests for information.” The bar went into effect on August 5, 2024 but was lifted on November 1, 2024.
Settled Customer Dispute Involving Alleged Fraud
In addition to his regulatory disclosures, Bongiovanni’s record also discloses a customer dispute from November 2016. The client alleged unsuitable investment recommendations, unauthorized trading, and fraudulent misrepresentations and omissions related to real estate, stocks, and closed-end funds. Bongiovanni’s member firm appears to have settled the matter in 2018 for $91,000.
Fact: According to Investopedia, one of the red flags of potential financial advisor fraud is a history of disciplinary actions or customer complaints, which may indicate a pattern of misconduct.
23-Year Career Spent with Various Firms
According to the Securities Exchange Commission, less than 1% of financial advisors have misconduct disclosures on their records, but some reports indicate that those financial advisors are statistically as much as five times more likely to engage in some new potential misconduct compared to the average financial advisor with no such disclosures. Based on this, there may very well be examples where one or two disclosures may be isolated examples, but at least some reports suggest that sometimes where there is smoke, there could be fire.
Bongiovanni entered the securities industry in 2001, registering with Prime Charter in New York. Over his 23-year career, he also worked for Joseph Gunnar & Company, J.P. Turner & Company, Newbridge Securities, and most recently, Spartan Capital Securities from 2019 to 2024.
He has passed the Series 7 and Series 63 exams.
Potential Recovery for Investor Losses
If you have suffered losses or damages due to potentially unsuitable, misrepresented, or unauthorized investments recommended by Sebastian Bongiovanni, you may be able to obtain a recovery of all or part of those losses. Most often, the potential legal recourse is in the form of a private, confidential, FINRA arbitration claim, where you could potentially recoup damages. The experienced securities arbitration and investment fraud attorneys at Haselkorn & Thibaut, P.A. (www.InvestmentFraudLawyers.com) can help assist you in determining the merits of any potential claims. A free no-cost consultation is just a telephone call away.
