Lawrence Cagliostro is the Subject of a Half-Million Dollar Dispute

Lawrence Cagliostro (CRD #: 2605127), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on September 6, 2025. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations 

On June 26, 2025, an investor alleged that Lawrence Cagliostro recommended unsuitable investments and made misrepresentations. The investor is seeking $500,000. 

What is an Unsuitable Investment? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. 

Rule 2111 also requires brokers to consider the following investor characteristics: 

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

Misrepresentation 

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

Background Information 

Lawrence Cagliostro has passed the following exams: 

• Series 10 General Securities Sales Supervisor – General Module Examination 
• Series 9 General Securities Sales Supervisor – Options Module Examination 
• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 3 National Commodity Futures Examination 
• Series 31 Futures Managed Funds Examination 
• Series 7 General Securities Representative Examination

He is a registered broker in 23 states and D.C. He is a registered investment adviser in New Jersey and Texas. 

Lawrence Cagliostro has registered with the following firms: 

• Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691) 
• Morgan Stanley & Co. Incorporated (CRD #: 8209) 
• Morgan Stanley (CRD #: 7556) 
• A.S. Goldmen (CRD #: 23180) 

Kurta Law Can Help

If you worked with Lawrence Cagliostro 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.