INVESTORS: Former CapWealth Investment Services broker Timothy Jude Pagliara was named in a customer dispute alleging breach of fiduciary duty and unsuitable recommendations.
Timothy Jude Pagliara (CRD: 733637) was registered as a broker with CapWealth Investment Services from 2009 until 2018. Previously, Pagliara was registered as a broker with NBC Securities from 2002 until 2008.
Pagliara has two disclosures on his BrokerCheck report.
November 2021 Customer Dispute
Allegations: Customer [REDACTED] is seeking alleged investment losses of approximately $375,000.00 from CapWealth Advisors (“CapWealth”). [REDACTED] became a client of CapWealth on June 18, 2021, and placed $5,000,000.00 in her account. [REDACTED] was shown a 5-month investment plan prior to signing the Investment Management Agreement outlining her future investment in GSEs (Fannie Mae and Freddie Mac), a long-term investment. [REDACTED] demonstrated investing knowledge and seemingly understood the long-term investment surrounding a GSE. Mr. Pagliara also provided a detailed background of GSEs, ensuring [REDACTED] understood. After [REDACTED] signed the Investment Management Agreement, CapWealth invested $500,000 in certain GSE preferred shares on June 21, 2021. About two days after the investment, the trading price of the GSEs dropped, resulting in a reduction of the trading price of the preferred shares of approximately $375,000.00. [REDACTED] alleges Mr. Pagliara ignored his fiduciary duties and [REDACTED]’s investing objectives and attempted to time the market on June 21, 2021, based on a pending Supreme Court ruling, causing [REDACTED] a $375,000.00 loss. [REDACTED] further alleges that Mr. Pagliara failed to disclose material facts related to GSE preferred stock investment, acted in negligence and gross negligence, breached his fiduciary duty, breached the contract between CapWealth and [REDACTED], and violated the Tennessee State Securities Act §48-1-101, et. seq.
Damage Amount Requested: $375,000.00
January 2010 Customer Dispute
Allegations: Client opened an account with RR in March of 2008 and subsequently purchased three bank stocks at the recommendation of and after discussion with the RR – Regions Financial, Fifth Third Bancorp, and Bank of America – for a total of $98,314.70. Client alleges that these recommended securities were not suitable in light of his financial profile, risk tolerance, and investment objective. Securities in the account are valued at $41,630.00 as close of trading 1/22/10.
Damage Amount Requested: $56,684.70
Settlement Amount: $30,000.00
Broker Comment: [Customer] settled with NBC Securities for $30,000. Client did not pursue a claim against Mr. Pagliara.
The Sonn Law Group is currently investigating allegations surrounding Timothy Jude Pagliara. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.