Angelo Piccone Suspended by FINRA for Alleged Reg-BI Violation

Angelo Piccone (CRD #: 1401761), a broker formerly registered with IBN Financial Services, has been suspended by FINRA, according to his BrokerCheck record, accessed on February 12, 2025. Keep reading if you want to know more about his alleged conduct as a broker.

FINRA Suspension

On January 29, 2025, Angelo Piccone consented to the entry of findings that he allegedly recommended that a client invest 77% of her net worth (excluding her primary residence) in speculative alternative investments between November 2020 and February 2021.

According to a Letter of Acceptance, Waiver & Consent (AWC), Angelo Piccone allegedly recommended 11 sales of speculative and illiquid alternative investments totaling $457,000, including two sales of GWG Holdings’ L Bonds totaling $90,000. Angelo Piccone allegedly earned $23,905.81 in commissions in connection with these recommendations.

The client allegedly had a moderate risk tolerance, a yearly income of less than $25,000, and a net worth of $587,438, excluding her primary residence. Her investment objectives allegedly did not include speculation; instead, the AWC alleged that her objectives were preservation of capital and her current income, and funding her retirement.

Based on this information, the AWC alleged that Angelo Piccone’s recommendations were not in the client’s best interest.

Allege Use of Unapproved Communications Channel

During the relevant period of April 2021 to June 2022, IBN Financial Services’ policies allegedly only allowed brokers to text clients to confirm appointments. However, the AWC alleged that Angelo Piccone communicated with the same client as above via text using his personal phone, discussing securities business.

These messages allegedly included an April 2022 text claiming that the client would “get [her] money back” following GWG Holdings’ dissolution. The AWC alleged that this statement was unbalanced, promissory, and misleading by failing to present the possibility that the client could lose her money.

Angelo Piccone allegedly failed to provide these text messages to his firm, causing IBN Financial Services’ to fail to preserve these records.

The AWC alleged that Angelo Piccone violated Regulation Best Interest and FINRA Rules 2010, 4511, 2210(d)(1)(A), and 2210(d)(1)(B).

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 4511

FINRA Rule 4511 requires firms to maintain accurate books and records.

FINRA Rule 2210

FINRA Rule 2210(d)(1)(A) requires public communications distributed by FINRA members to be fair and balanced, and provide investors with a sound basis for evaluating an investment or service.

Rule 2210(d)(1)(B) prohibits the use of promissory, false, or misleading claims in communications with the public.

Sanctions

Angelo Piccone consented to the following sanctions:

• 5-month suspension from associating with FINRA members
• $10,000 fine
• Disgorgement of $23,905.81 plus interest

His suspension began on February 3, 2025, and will end on July 2, 2025. You can access the AWC here.

Investor Dispute

On February 20, 2023, an investor filed a dispute alleging Angelo Piccone facilitated an investment that was unsuitable given the client’s risk profile. The investor sought $90,000 in damages and received a settlement of $63,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe characteristics such as their age, investing experience, tax status, and financial goals.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Background Information

Angelo Piccone has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Direct Participation Programs Representative Examination – Series 22
• Investment Company Products/Variable Contracts Representative Examination – Series 6
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for the following firms:

• IBN Financial Services (CRD#:42360)
• Ensemble Financial Services (CRD#:17443)
• Next Financial Group (CRD#:46214)
• MetLife Securities (CRD#:14251)
• Metropolitan Life Insurance Company (CRD#:4095)
• Securities America (CRD#:10205)
• Nathan & Lewis Securities (CRD#:8503)
• LifeMark Securities Corporation (CRD#:16204)
• Hornor, Townsend & Kent (CRD#:4031)
• Berkshire Equity Sales (CRD#:87)
• Equity Services (CRD#:265)
• Mony Securities Corporation (CRD#:4386)

Kurta Law Can Help

If you worked with Angelo Piccone and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.