Posted in: FINRA | Greedy Brokers | Breach of Fiduciary Duty |
Richard Alan Pizzuti, a former stockbroker based in Lake Mary, Florida, was expelled from the securities industry six months ago for failing to comply with regulators’ requests for information. Now, nearly a half-dozen of Pizzuti’s former clients are still wondering where their investment money went, according to the Orlando Sentinel.
Pizzuti, who had been a registered representative of Merrimac Corporate Securities since 2003, had allegedly invested more than $2 million on behalf of clients who were based throughout the country.
While federal regulators have not disclosed specifically which securities Pizzuti while a registered FINRA member, investors claim he was supposed to invest their money in multiple ventures, including hotels, coffee shop businesses, and tech patents.
Patrick Boyle, an investor based in Fresno, California, told the Sentinel he had lost $1 million, including his principal investment, after investing with Puzzuti.
“He has ruined many people’s lives,” Boyle said.
Another client, Tracey Riley of San Diego, claimed her money was improperly diverted from her account to, among other investments, funding for Pizzuti’s book on Christian investment advice called The Pizzuti Principles.
Assuming allegations against Pizzuti are true, FINRA will need to figure out how to properly punish someone who has cut ties with the securities industry, but may have committed wrongdoing. Pizzuti’s case is also being reviewed by the FBI, as well as Florida state regulators.
The Florida Office of Financial Regulation, after responding to an investor complaint from February, is also investigating his wife Sharon, and his brother Stephen Pizzuti. Richard and Stephen had both hosted a local radio show, The Jesus Crew, where they dispensed financial advice.
Pizzuti told the Sentinel his current problems were the result of FINRA regulators, and a negative Web site he said was created by a former client in California. The Web site includes photos—we presume—of Mr. Pizzuti, a copy of the ex-broker’s record on FINRA’s homepage, and an intro movie playing to the Excorcist theme. While it is hardly New York Times reporting, hopefully it drives home the point to any potential investors.
To round out Pizzuti’s dubious defense, he claims FINRA’s investigation is unfair because he was no longer a securities trader.
“By the time they [regulators] came to me with all these unfounded allegations, I was already done with the FINRA side of the business,” he said.
Keep in mind Pizzuti voluntarily joined FINRA in March 2003, so that he could legally give investment advice and sell securities. When this regulator asked him to testify and provide documents which could have proved his innocence, Pizzuti flatly refused the request.
As investors, we are left to draw one of two conclusions from this: either Pizzuti ducked clear of FINRA’s investigation to conceal his broker fraud and misconduct, or he does not care if the general public believes he embezzled investor money. By Pizzuti’s twisted logic, it would be improper to investigate any broker who has committed alleged financial wrongdoing—including Bernie Madoff—as long as the accused broker had left the industry by the time the complaints were made.
Despite allegations against him, Pizzuti is currently selling insurance and annuities in Florida. The ex-broker is permitted to do so without being a member of FINRA, but it is alarming to think he is selling financial products to the general public.
While it appears as if more investors are being enraged by the activities of the Pizzutis, we can only hope the disgraced ex-broker and his colleagues have no future opportunities to cause harm.
