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Michael Capolongo Has Entered Bankruptcy Following Investor Dispute 

Oct 8, 2021 Financial Disclosure

Michael Capolongo (CRD #:5702165), a broker registered with Network 1 Financial Securities, is facing bankruptcy and a recent investor dispute according to his BrokerCheck record,  accessed on November 25, 2021. 

On October 21, 2021, Michael Capolongo filed for bankruptcy. 

Investor Allegations 

On July 13, 2021, an investor filed a dispute against Michael Capolongo alleging quantitative and qualitative unsuitability, excessive trading, and misrepresentation. The damage amount requested is $330,113.00; the dispute is still pending.  

Older Investor Disputes 

There are two other investor disputes alleging that Michael Capolongo recommended unsuitable investments and churned investor accounts. These were disputes collectively resolved for $74,500.  

Which Rules Did Michael Capolongo Allegedly Break?  

FINRA Rule 2111 addresses the suitability of investments. It requires that brokers take into account their customers’ financial profiles before recommending trades. Their profiles include information about their risk tolerance and financial goals. FINRA Rule 2111 also prohibits excessive trading, stating that trades must be quantitatively suitable — i.e., the number of trades must be suitable to the investor.   

FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Background Information 

Michael Capolongo has passed the following exams: 

  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 - General Securities Representative Examination 

He is a registered broker in 19 states.  

Other than Network 1 Financial Securities, Michael Capolongo has worked with the following firms: 

  • Worden Capital Management (CRD#:148366) 
  • Laidlaw & Company (UK)  (CRD#:119037) 
  • First Standard Financial Company (CRD#:168340) 
  • Rockwell Global Capital (CRD#:142485) 
  • EKN Financial Services (CRD#:113525) 
  • National Securities Corporation (CRD#:7569) 
  • New Castle Financial Services (CRD#:102380) 
  • John Thomas Financial (CRD#:40982) 

 Kurta Law Can Help 

If you have worked with Michael Capolongo and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com 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.