FINRA

Mancuso was named a respondent in a FINRA complaint alleging that during on-the-record testimony provided to FINRA, he lied in order to conceal his involvement with two senior customers' transfers of funds to a company, a purported Swiss asset management firm. The complaint alleges that Mancuso was a consultant for the company and introduced the customers to it. Mancuso arranged for the customers, who were sisters, to transfer $603,000 of their life savings to the company. Mancuso falsely denied knowing that the customers had transferred a significant portion of their life savings to the company, notwithstanding that he was the sole connection between these customers and the company and had facilitated the transfers. Mancuso also falsely testified that he believed one of the customer's assets continued to be invested in a variable annuity that he recommended to her while he was associated with a member firm when, in fact, he had previously made numerous telephone calls and sent emails to the variable annuity company to liquidate the customer's annuity so that the proceeds could be wired to the company. Finally, Mancuso lied about knowing of and contacting an attorney to potentially change one of the customer's power-of-attorney.

Decision

Bar (Permanent)

All capacities

indefinite

4/28/2021

Default decision rendered March 31, 2021. The sanction was based on the findings that Mancuso provided false testimony during an on-the-record (OTR) interview. The findings stated that Mancuso served as the broker for two senior customers. Mancuso recommended that both customers purchase a variable annuity offered by a financial institution. Mancuso also worked as a consultant for a purported Swiss asset management firm (the Swiss Company). The customers each entered into separate loan agreements with a Delaware limited partnership (the Delaware company). The loan agreements identified the Swiss company as the general partner of the Delaware company. The customers made wire transfers from their bank to the Swiss company totaling $105,000 as part of their funding of the loan agreements. Mancuso falsely denied any involvement in the customers' initial transfers of funds to the Swiss company. Mancuso testified he did not know that the first customer agreed to lend $50,000 to the Delaware company. Mancuso knew about the loan because he acted as the sole connection between the customers and the Swiss and Delaware companies. Mancuso also falsely asserted during his OTR testimony that he did not know how the first customer became acquainted with the Swiss company. Mancuso facilitated the first customer's contact with the Swiss company, and he knew about the transfers of funds the customers made to the Swiss company. Also, Mancuso facilitated the transfer of more funds by the customers to the Swiss company and falsely testified about it to FINRA. The customers continued wiring a significant portion of their life savings to the Swiss company while Mancuso was working there as a consultant. All told, the customers wired $603,000 from their joint bank accounts to the Swiss company. Throughout his OTR testimony, Mancuso repeatedly denied having any involvement in these transfers or even knowing that they occurred. Mancuso facilitated at least three of these transfers. In addition, Mancuso expressly acknowledged to FINRA in a voicemail that he knew that the first customer had investments through a non-U.S. investment firm that he was with that was regulated through Switzerland. After FINRA confronted Mancuso with this statement during his OTR testimony, he falsely asserted that he couldn't remember knowing the first customer had anything at the Swiss company and claimed that he jumbled his words. Additionally, Mancuso falsely testified that he was unaware that the first customer had liquidated her variable annuity. Mancuso directly facilitated the liquidation of the customers' variable annuities by making several telephone calls and sending emails to ensure that the annuities were liquidated and the proceeds immediately transferred to the Swiss company. Mancuso also facilitated the liquidations by making misrepresentations to the financial institution. Mancuso called the financial institution and falsely stated that the first customer was having an emergency and needed to make a withdrawal. Similarly, Mancuso called the financial institution and falsely claimed that the second customer had to liquidate her variable annuity because she was in the hospital and needed the funds. Further, Mancuso falsely testified about whether he had tried to hire an attorney to change the first customer's power of attorney. Before his OTR, Mancuso contacted a Massachusetts attorney about changing the power of attorney. Mancuso denied ever contacting an attorney on the first customer's behalf or contacting the Massachusetts attorney. The decision became final on April 28, 2021.

Crowdvest Securities LLC

Permitted to Resign

FINRA Case #20200666085. On August 17, 2020, FINRA made a preliminary determination to recommend that disciplinary action be brought against Gregory Mancuso, alleging violations of FINRA Rules 8210 and 2010 in that Mancuso provided false testimony in an on-the-record interview conducted pursuant to FINRA Rule 8210; and violations of FINRA Rules 3270 and 2010 in that Mancuso engaged in an undisclosed outside business activity. On September 16, 2020, FINRA made a further preliminary determination to recommend that disciplinary action be brought against Mancuso, alleging violations of FINRA Rule 8210 and 2010 in that Mancuso failed to provide documents in response to a request made pursuant to FINRA Rule 8210.

BBVA SECURITIES INC.

Voluntary Resignation

THE FIRM IS INVESTIGATING REPRESENTATIVE'S POTENTIAL FAILURE TO FOLLOW THE FIRM'S ACCOUNT OPENING PROCEDURE.

d flag" and the BBVA Supervisor discriminated against theThe Issuing BBVA Blackballed the representative and after a FINRA investigation that found no wrongdoing BBVA refused to update the U5. Mr. Mancuso intends to dispute this matter originated from a customer account's spouse being African-American, and client was Anglo-American, and Supervisor deemed it a "re customer blamed the subject representative and then Blackballed the rep on form U5 in the industry by filing a fraudulent U5 in contravention of industry standards of practice. The Hiring firm on 4.2016 after substantial investigation determined no wrongdoing by representative Mancuso FINRA gateway case 1268098 and was forced to answer yes to 14J allow license activation in violation of industry own rules of conduct.

BBVA SECURITIES INC.

Voluntary Resignation

THE FIRM IS INVESTIGATING REPRESENTATIVE'S POTENTIAL FAILURE TO FOLLOW THE FIRM'S ACCOUNT OPENING PROCEDURE.

The Issuing BBVA Blackballed the representative and after a FINRA investigation that found no wrongdoing BBVA refused to update the U5. Mr. Mancuso intends to dispute this matter originated from a customer account's spouse being African-American, and client was Anglo-American, and Supervisor deemed it a "red flag" and the BBVA Supervisor discriminated against the customer blamed the subject representative and then Blackballed the rep on form U5 in the industry by filing a fraudulent U5 in contravention of industry standards of practice. The Hiring firm on 4.2016 after substantial investigation determined no wrongdoing by representative Mancuso FINRA gateway case 1268098 and was forced to answer yes to 14J allow license activation in violation of industry own rules of conduct.

CUSTOMER PURCHASED A STRUCTURED NOTE IN HIS ACCOUNT, WHICH IS PLEDGED AS COLLATERAL, IN JUNE, 2013. CUSTOMER ALLEGES THAT REPRESENTATIVE MISREPRESENTED THE TERM OF THE NOTE AND THE MEDIUM-TERM NATURE OF THE INVESTMENT (A 7 YEAR NOTE). CUSTOMER CLAIMS HE WOULD NEVER TIE UP HIS MONEY LONGER THAN 30 DAYS, A CLAIM WHICH RUNS CONTRARY TO HIS DISCLOSED INVESTMENT TIME HORIZON OF 5 TO 10 YEARS.

$30,000.00

$2,500.00