INVESTORS: Former broker Anthony Mastroianni is facing civil and criminal charges following accusations of scamming at least 11 investors out of more than $1 million.
Anthony Mastroianni was barred by FINRA in 2016 after he refused to appear for testimony concerning allegations of, among other things, excessive trading in an elderly customer’s account, the US Securities and Exchange Commission (SEC) said in a statement. Despite his bar from the securities industry, the SEC alleges that from January 2017 to August 2022, he allegedly took money from investors, many of whom were elderly, by claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corp. The SEC alleged that Mastroianni and Global Business Development and Consulting Corp., induced investors to buy promissory notes issued by Global by promising investors interest rates ranging from 50% to 175%.
Instead of investing the investors’ funds, Mastroianni reportedly used them for personal expenses, including rent, car payments, credit card bills, and cash withdrawals. Mastroianni is also accused of submitting a fraudulent application for $96,300 from a federal COVID-19 emergency relief loan known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loans were intended for small businesses adversely affected by the pandemic. Once he received the funds, he used the proceeds to make personal purchases and cash withdrawals.
The SEC’s complaint charges Mastroianni and Global with violating the antifraud provisions of the federal securities laws and seeks disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and permanent injunctive relief.
Mastroianni is facing a parallel criminal action that includes charges of wire and mail fraud, with each count carrying a maximum penalty of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense, the complaint said.
If you have any information about Anthony Mastroianni that you would like to share or discuss, please call our firm for a confidential consultation. 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.