Michael Fasciglione Suspended and Barred by FINRA

Michael Fasciglione (CRD #: 1806486), a broker registered with Aegis Capital Corp, is currently both suspended and barred by FINRA, according to his BrokerCheck record, accessed on April 12, 2025. For more information concerning his alleged conduct as a broker, keep reading. 

Suspensions by FINRA

Michael Fasciglione has been subject to two FINRA suspensions in 2025. Both arose from FINRA allegations that he failed to comply with an arbitration award or settlement agreement or to adequately respond to requests for information about the status of his compliance.

The first suspension, which began on January 31, 2025, made these allegations in connection with an arbitration award filed on November 4, 2024. In it, Michael Fasciglione was named in allegations of the following misconduct with regard to real estate investment trusts (REITs) and private alternative investments:

• Sale of unsuitable securities
• Violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934
• Violation of Section 12 of the Securities Act of 1933
• Violation of the New Jersey Uniform Securities Act
• Negligent failure to supervise
• Common law fraud

An arbitration award made Michael Fasciglione liable for $500,000 in compensatory damages and interest on these damages of 6% per annum. You can read it here.

The second suspension, which took effect on February 3, 2025, alleged Michael Fasciglione’s failure to comply in relation to an arbitration award filed on November 21, 2024. This dispute made the same allegations as the above dispute, and Michael Fasciglione was made liable for $191,516.00 in compensatory damages.

Both suspensions will continue until the requested payments are made or discharged.

FINRA Rule 2010

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

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about risk tolerance, financial goals, and age.

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

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of deceptive, manipulative, and otherwise fraudulent practices relating to the purchase and sale of securities.

Section 20(a) makes liable every person controlling a person accused of violations. In other words, supervisors responsible for detecting and preventing violations of securities laws can be considered responsible for the violations of the brokers they supervise.

Securities Act of 1933

Section 12 of the Securities Act of 1933 allows investors to sue anyone who offers or sells an unregistered security or who makes untrue statements or omissions of fact about a security in its prospectus or oral communications.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision over their employees in order to detect and prevent violations of securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

Bar by FINRA

On September 27, 2023, Michael Fasciglione was barred by FINRA for allegedly failing to respond to requests for information. His bar took effect on January 2, 2024.

Criminal Charges

On March 12, 2023, two criminal charges were entered against Michael Fasciglione. These charges are currently pending.

Investor Disputes

Three pending disputes, filed in August 2024, alleged that Michael Fasciglione recommended unsuitable investments. Two of these disputes also alleged negligence.

Four pending disputes, filed from February to May 2022, alleged that Michael Fasciglione recommended unsuitable REITs, including First Capital REIT and ARC NYC REIT. Three of these disputes were settled for a total of $575,000.

On June 27, 2023, Michael Fasciglione was named in a dispute alleging the sale of unsuitable securities, violation of federal and state securities laws, failure to supervise, and fraud with regard to REITs. You can read the arbitration award here.

According to another arbitration award, a dispute filed on June 26, 2023, named Michael Fasciglione in the same allegations.

Previous Disputes

On July 29, 2022, an investor alleged that Michael Fasciglione executed unauthorized trades, recommended unsuitable investments, and engaged in negligent conduct. This dispute was settled for $92,500.

In a dispute filed on March 7, 2022, multiple investors alleged that Michael Fasciglione executed unauthorized and excessive trades, made misrepresentations and omissions of material fact, and engaged in negligence. They received a settlement of $50,000.

On October 19, 2021, an investor filed a dispute alleging that Michael Fasciglione made an unsuitable investment recommendation. The client received a settlement of $136,300.

On September 21, 2021, an investor alleged that Michael Fasciglione recommended an unsuitable REIT. They received a settlement of $57,500.

Five disputes, filed from 2017-2021, alleged that Michael Fasciglione gave unsuitable investment recommendations. These disputes were settled for a collective $695,000.

FINRA Rule 3260

FINRA Rule 3260 prohibits brokers from conducting discretionary trading outside discretionary accounts, which are pre-approved for discretionary trading by the firm and the client.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent tactics to influence investors’ decisions. The misrepresentation or omission of material facts violates this rule.

Background Information

Michael Fasciglione has passed the following exams:

• General Securities Sales Supervisor Examination (Options Module & General Module) – Series 8
• General Securities Principal Examination – Series 24
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

In the past, Michael Fasciglione has worked with the following firms:

• Aegis Capital Corporation (CRD #: 15007)
• National Securities Corporation (CRD #: 7569)
• First Montauk Securities (CRD #: 13755)
• Oppenheimer & Co. (CRD #: 249)
• Josephthal & Co. (CRD #: 3227)
• Continental Broker-Dealer Corp. (CRD #: 14048)
• Chatfield Dean & Co. (CRD #: 14714)
• The Stuart-James Company (CRD #: 11691)
• Robert Todd Financial (CRD #: 7423)
• Vanderbilt Securities (CRD #: 14280)
• J.T. Moran & Co. (CRD #: 15655) 

Kurta Law Can Help

If you worked with Michael Fasciglione and you have concerns about your investments, contact Kurta Law today. Call 212-658-1502 or email jkurta@kurtalawfirm.com.

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 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.