Vito J. Balsamo (FINRA CRD No. 2084901) entered the securities industry in 1990 and became registered as a general securities representative in 1991. During Balsamo’s career he worked for several FINRA-member firms, including but not limited to: D.H. Blair & Co, Inc.; Joseph Stevens & Company, Inc.; and LCP Capital Corp. From April 2008 to February 2012, and during the relevant time period, Balsamo worked for National Securities Corporation (“NSC”) in New York. Balsamo is no longer registered with any FINRA-member firm; however, he remains subject to FINRA’s jurisdiction and disciplinary power.
FINRA’s Department of Enforcement is currently investigating Balsamo and alleges he solicited purchases of $475,000 worth of VMI from three investors from June 2010 to September 2010. According to FINRA, Balsamo received an ownership interest in VWI, based upon his ability to raise capital for the company. FINRA alleges Balsamo failed to obtain prior written approval from NSC prior to recommending the purchase of VWI to the investors. To make matters worse, Balsamo misrepresented to NSC that he had not engaged in any outside business transactions when prompted to complete a compliance questionnaire on August 17, 2010.
Based upon the foregoing misconduct, FINRA alleges Balsamo violated NASD Conduct Rule 3040 and FINRA Rule 2010. NASD Conduct Rule 3040 states no FINRA registered person may be an employee or receive compensation for outside business transactions unless he or she has provided prior written notice to their employer. The primary purpose of this Rule is to ensure that the FINRA-member firm can adequately supervise the financial advisor’s sales and business practices.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing with Balsamo while NSC employed him as a registered representative, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.