Red Flags
9
Michael Pellegrino
Michael Pellegrino faces SEC charges for selling unregistered securities, misleading investors, and breaching fiduciary duties. Allegations include fraud, misrepresentation of investments, and regulatory violations, raising serious concerns about his financial practices.
Quick summary on Michael Pellegrino
Michael Pellegrino, co-founder of Goldstone Financial Group, has faced significant regulatory and legal challenges:
SEC Charges for Unregistered Securities Sales
The SEC charged Pellegrino and Goldstone Financial Group with selling unregistered securities, facilitating $37 million in transactions for 1 Global Capital LLC between May 2017 and June 2018 without proper registration.
Allegations of Investment Fraud and Deceptive Practices
Clients allege that Pellegrino misrepresented investment opportunities, leading them to invest retirement funds into high-risk, unregistered securities without full disclosure of associated risks and fees.
Breach of Fiduciary Duty and Professional Negligence
From 2015 to 2019, Pellegrino accumulated multiple customer complaints, citing breaches of fiduciary duty and professional negligence, including unsuitable investment recommendations and failure to act in clients’ best interests.
Misrepresentation of Investment Products
Under Pellegrino’s leadership, Goldstone Financial Group has been accused of misrepresenting complex financial instruments, such as Business Development Companies (BDCs) and non-traded Real Estate Investment Trusts (REITs), without adequately informing clients about inherent costs and risks.
Regulatory Sanctions and Cease-and-Desist Orders
The SEC issued a cease-and-desist order against Pellegrino and Goldstone Financial Group, highlighting the severity of their misconduct and mandating the cessation of activities related to the unregistered sale of securities.
Intel Reports
by: Ryan Sterling
Invested with Michael Pellegrino, now my savings are gone. Feels like a scam!
by: Lillian Montgomery
Michael Pellegrino's financial advice led me to unregistered securities. Now I'm facing huge losses. 😡
Cons
by: Zachary Ashford
I trusted Michael Pellegrino with my retirement savings, but he put me into high-risk, unregistered investments without proper disclosure. Now my savings are gone, and I feel utterly betrayed. His lack of transparency and disregard for clients' best interests is...
by: Natalie Delaney
Invested based on Michael Pellegrino's recommendations and ended up with heavy losses. Feels like a scam.