David Melilli Barred for Allegedly Failing to Cooperate with FINRA
David Melilli (CRD #: 5254172), a broker formerly registered with Cambridge Investment Research, has been barred by FINRA, according to his BrokerCheck record, accessed on November 24, 2021. This bar stems from allegations that he refused to provide documents and information requested by FINRA in connection with its investigation into, among other things, whether David Melilli exercised discretion without written authorization in a customer’s account.
By refusing to produce the documents and information requested pursuant to FINRA Rule 8210, Melilli violated FINRA Rules 8210 and 2010.
FINRA Rule 8210 requires that registered brokers supply FINRA staff with all information and documents requested in the course of an investigation. A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
You can read a copy of the AWC here.
As part of the terms of the AWC, David Melilli consented to a bar from associating with any FINRA member in all capacities.
David Melilli also has an investor dispute on his record, dated February 19, 2020. The investor alleged unauthorized trading, breach of fiduciary duty, unsuitability, negligence, common law fraud, 10(b) violation, and churning. The damage amount requested is $140,000; the dispute is still pending.
On May 16, 2019, David Melilli was fired from his position at Cambridge Investment Research following allegations that he placed discretionary trades with authorization.
A broker must always have the customer’s written permission before executing any transactions on their account. This is in accordance with NASD Rule 2510(b) and FINRA Rule 3260(b), which states that a broker shall not exercise any discretionary power in a customer’s account unless given prior written authorization.
David Melilli has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 – Futures Managed Funds Examination
- Series 7 – General Securities Representative Examination
David Melilli has also worked with the following firms:
- LPL Financial (CRD#:6413)
- Sagepoint Financial (CRD#:133763)
- Janney Montgomery Scott (CRD#:463)
- Morgan Stanley & Co., Incorporated (CRD#:8209)
- Lincoln Financial Advisors Corporation (CRD#:3978)
Kurta Law Can Help
If you have been victimized after working with David Melilli, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and 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.