Nicholas John Polito – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Nicholas John Polito.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Nicholas John Polito. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Nicholas Polito
Nicholas John Polito is an Investment Adviser. Nicholas John Polito’s Central Registration Depository (CRD) number is 2287074 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2287074.
Click here to download a Detailed Audit Report for Nicholas John Polito.
Nicholas John Polito has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Nicholas John Polito’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 12/4/2013
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC ADMIN RELEASE 34-70980, IA RELEASE 3731, DECEMBER 4, 2013: THE SECURITIES AND EXCHANGE COMMISSION (\COMMISSION\) DEEMED IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (\EXCHANGE ACT\) AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (\ADVISERS ACT\) AGAINST NICHOLAS J. POLITO, JR. ( ESPONDENT\). THE COMMISSION FOUND THAT ON OCTOBER 17, 2012, POLITO PLEADED GUILTY TO ONE COUNT OF BANK FRAUD IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTION 1344 BEFORE THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA, IN UNITED STATES V. NICHOLAS J. POLITO, JR., CRIM. INFORMATION NO. 3-CR-12-261. ON MAY 6, 2013, A JUDGMENT IN THE CRIMINAL CASE WAS ENTERED AGAINST POLITO. HE WAS SENTENCED TO A PRISON TERM OF 42 MONTHS FOLLOWED BY THREE YEARS OF SUPERVISED RELEASE AND ORDERED TO MAKE RESTITUTION IN THE AMOUNT OF $673,349.44. THE COUNT OF THE CRIMINAL INFORMATION TO WHICH POLITO PLEADED GUILTY ALLEGED, AMONG OTHER THINGS, THAT, FROM 2005 TO ON OR ABOUT NOVEMBER 16, 2011, POLITO KNOWINGLY EXECUTED A SCHEME OR ARTIFICE TO DEFRAUD A BANK AND TO FRAUDULENTLY OBTAIN MONEY FROM THE BANK’S CUSTOMER ACCOUNTS BY, AMONG OTHER MEANS, FORGING INVESTOR’S NAMES ON CHECKS AND FALSIFYING INVESTMENT ACCOUNT STATEMENTS.
- Resolution: Order
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: ASSOCIATION WITH ANY BROKER, DEALER, INVESTMENT ADVISER, MUNICIPAL SECURITIES DEALER, MUNICIPAL ADVISOR OR TRANSFER AGENT
- Duration: Indefinite
- Start Date: 12/4/2013 Registration Capacities Affected: ASSOCIATION WITH ANY NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION
- Duration: Indefinite
- Start Date: 12/4/2013 Registration Capacities Affected: PARTICIPATING IN ANY OFFERING OF A PENNY STOCK
- Duration: Indefinite
- Start Date: 12/4/2013
DISCLOSURE 2 –
- Event Date: 10/10/2012
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: BANK FRAUD
- Disposition: Convicted
DISCLOSURE 3 –
- Event Date: 9/4/2012
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2011029704101
- DocketNumberAAO: 2011029704101
- Initiated By: FINRA
- Allegations: FINRA RULES 2010, 8210, NASD RULE 2370: FINRA REQUESTED THAT POLITO APPEAR FOR AN ON-THE-RECORD INTERVIEW IN CONNECTION WITH AN INVESTIGATION INTO THE CIRCUMSTANCES SURROUNDING THE TERMINATION OF HIS EMPLOYMENT AT A MEMBER FIRM AND HE FAILED TO APPEAR. POLITO’S CUSTOMER SOLD SHARES OF A COMPANY’S COMMON STOCK IN HER BROKERAGE ACCOUNT WITH POLITO’S ASSISTANCE. THE PROCEEDS FROM THE SALE WERE IN EXCESS OF $200,000, AND SHE LATER TENDERED A CASHIER’S CHECK TO POLITO FOR $200,000, WHICH POLITO SUBSEQUENTLY DEPOSITED INTO AN ACCOUNT FOR HIS BENEFIT. POLITO STATED THAT THE CUSTOMER PROVIDED THE FUNDS TO HIM WITH A VERBAL AGREEMENT THAT HE WOULD PAY THE FUNDS TO HER BENEFICIARIES UPON HER DEATH. POLITO AND THE CUSTOMER DID NOT HAVE A WRITTEN LOAN AGREEMENT, AND HIS FIRM’S PROCEDURES DID NOT PERMIT HIM TO BORROW FUNDS FROM THE CUSTOMER. ADDITIONALLY, POLITO NEVER SOUGHT THE FIRM’S PERMISSION TO BORROW FUNDS FROM THE CUSTOMER.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All Capacities
- Start Date: 9/4/2012
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, POLITO CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ALL CAPACITIES.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- INVEST FINANCIAL CORPORATION (CRD#: 12984) :: 11/26/2010 – 11/29/2011 :: HONESDALE, PA
- PNC INVESTMENTS (CRD#: 129052) :: 10/18/2005 – 8/30/2010 :: PECKVILLE, PA
- PNC INVESTMENTS (CRD#: 129052) :: 1/1/2004 – 10/7/2005 :: PITTSBURGH, PA
- J.J.B. HILLIARD, W.L. LYONS, INC. (CRD#: 453) :: 6/1/2002 – 1/1/2004 :: LOUISVILLE, KY
- PNC BROKERAGE CORP (CRD#: 34671) :: 5/10/1994 – 6/1/2002 :: PITTSBURGH, PA
- METLIFE SECURITIES INC. (CRD#: 14251) :: 4/5/1993 – 2/18/1994 :: SPRINGFIELD, MA
- METROPOLITAN LIFE INSURANCE COMPANY (CRD#: 4095) :: 4/5/1993 – 2/18/1994 :: NEW YORK, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Nicholas John Polito, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Nicholas Polito
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Nicholas John Polito – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2287074) for the broker – Nicholas John Polito
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.