JEFFERSON CITY, MO — Missouri Secretary of State Jay Ashcroft’s Securities Division issued a consent order against John N. Cucinella and two affiliated companies who sold unregistered, non-exempt securities to two Missouri investors.
From Nov. 2016 to March 30, 2018, Cucinella solicited two Missouri residents, from Fayette and Arnold, to invest $14,000 in an initial public offering, precious metals and Rhodium, among other things. One investor was told his loss wouldn’t exceed $50, that Cucinella wouldn’t charge a commission and that he was a registered agent. None of those statements were true.
After being charged undisclosed commissions and various fees, as well as suffering trading losses, the investors suffered a loss of $4,872.83.
Cucinella, from Brooklyn, New York, operated through companies Mackrow Asset Management Group and Runnstarr Asset Management Group. Cucinella was registered as an agent in Missouri until November 2013, but hasn’t been registered anywhere since March 2015. Mackrow and Runnstarr have never been registered in Missouri.
Under the consent order, Cucinella, Mackrow and Runnstarr will pay complete restitution to the investors, totaling $4,872.83, and investigation costs of $2,500 to the Investor Education and Protection Fund.
“While the two aggrieved Missouri investors only suffered modest financial loss, we are pleased that the respondents have agreed to pay 100 percent of the loss back, as well as the cost of the investigation,” Securities Commissioner David M. Minnick said. “Investors should remember that just because someone was previously registered, it doesn’t mean they are now. Investors should always inquire about an agent’s registration status before investing.”
Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.
SOURCE: news provided by SOS.MO.GOV