DAVID MELILLI INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Announces Investigation of FINRA Barred Financial Advisor David Melilli

November 12, 2021

David Melilli Cambridge Investment Investment Losses?

KlaymanToskes Investigates Former Moorestown, NJ Broker

National investor fraud law firm KlaymanToskes announces its investigation (“David Melilli Cambridge Investment Investigation”) former Cambridge Investment Research broker David Melilli (Moorestown, NJ). The investigation is in light David Melilli’s bar from the securities industry relating to allegations concerning his exercising of discretion without written authorization in a client’s account.

David Melilli Cambridge Investment Investigation

David Melilli refused to comply with FINRA’s request for documents and information during FINRA’s investigation. Failure to comply with a FINRA investigation is, in and of itself, a violation of securities’ industry rules. As such, David Melilli is permanently barred from association with any FINRA member in any capacity.

David Melilli’s Background in the Securities Industry

According to BrokerCheck, David Melilli began working in the securities industry beginning in 2006. From January 2010-August 2019, David Melilli worked as a financial advisor with SagePoint Financial, Inc. SagePoint ended David Melilli’s employment in January 2020.

Thereafter, David Melilli worked with Cambridge Investment Research, Inc. (“Cambridge”) through February 4, 2020. David Melilli’s employment with Cambridge also ended with Cambridge terminating his employment.

Per FINRA BrokerCheck, David Melilli is not currently associated with a FINRA member firm, and based on FINRA’s bar, he cannot associate with any FINRA member in any capacity, including ministerial tasks, ever again.

Customer Complaints & David Melilli

David Melilli currently has a total of 3 customer complaints with one of them pending. Two of the complaints include the same unauthorized trading allegation that was the subject of David Melilli’s termination with Cambridge and bar from FINRA.

Two complaints included allegations including unsuitable investments, breach of fiduciary duty, negligence, fraud, violation of industry rules, and churning.

What is Churning?

According to FINRA, brokerage firms and its financial advisors that excessively traded or “churn” a brokerage account are in violation securities industry rules and regulations. FINRA arbitrations will generally be successful in an excessive trading or “churning” claim if a customer can prove two case facts.

  • First, the panel must conclude the financial advisor controlled or solicited the activity in the account.
  • Second, the activity in the account was excessive based on the Claimant’s risk tolerance and investment objectives

FINRA Bars David Melilli from Securities Industry

FINRA requested that David Melilli provide them with documents and information related to the possible exercise of discretion in an investor’s account without written authorization to do so. David Melilli refused to provide FINRA with the requested documents and information.

On February 4, 2020, Cambridge filed a Form U-5 terminating his employment with them for the same reason FINRA was investigating him. Specifically, Cambridge terminated David Melilli for placing discretionary trades without authority.

Due to David Melilli’s refusal to cooperate with the FINRA investigation, David Melilli has been permanently barred from associating with any FINRA member in any capacity, including but not limited to clerical and ministerial tasks as of November 8. 2021.

Lose Money Investing with David Melilli (Moorestown, NJ)?

Former customers of financial advisor David Melilli with losses exceeding $100,000, and who may have information relating to the way David Melilli handled their accounts, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm that practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $220 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.