Broker Anthony Cottone Misappropriated $2.8M of Client Funds

Ex-Landolt Securities Broker Ran Now-Defunct Retirement Planning Institute

Anthony Matthew Cottone, an ex-Landolt Securities stockbroker, has been charged by the US Securities and Exchange Commission (SEC) with fraudulently running Secured Capital Strategies Fund. This is a private fund in which 11 investors were persuaded to invest about $2.8M. Cottone was permanently barred by the Financial Industry Regulatory Authority (FINRA) in 2018.

The owner and manager of the now-defunct Retirement Planning Institute LLC (RPI), Anthony Cottone, was a securities industry member for 13 years. His Broker Check record notes that he was a registered broker and investment adviser with several firms during this time. Most recently, he worked with Landolt Securities from 2016 to 2017.

Before that, he worked with the following firms:

Financial West Group, which was expelled in 2020
MidAmerica Financial Services, which was expelled in 2016
WealthForge Securities, which fired him in 2017
AXA Advisors, which allowed him to resign in 2010 over alleged related sales practice violations
Newbridge Securities
Independent Securities Investors
GunAllen Financial
Morgan Stanley
UBS PaineWebber
Monticello Investment Services.

Our Florida broker negligence attorneys are looking into claims of losses involving Anthony Cottone while he was a registered representative. Contact us today at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com).

Former Customer of Cottone Alleges Overconcentration, Failure to Supervise

Cottone’s BrokerCheck notes seven disclosures, including the most recent SEC case. The Commission is accusing him of misappropriating $134K and not telling investors that he used Secured Capital Strategies Fund assets. These assets were used to pay investors involved in an earlier unrelated offering and run a startup auto dealership that he managed.

Cottone also allegedly neglected to disclose a prior criminal conviction and that any commission payments came out of fund assets.

In the confidential offering memorandum, investors of Secured Capital Strategies Fund were told that they were entitled to a yearly 12% “preferred return.” The last payment from the fund to investors was in early 2018. The fund was dissolved not long after.

The misappropriation allegations are not the first time Cottone has been accused of broker misconduct. In 2015, he was charged with conspiracy to commit a crime by allegedly introducing misbranded prescription medications into interstate commerce. He pleaded guilty and was sentenced to probation. A FINRA arbitration case involving Cottone from July 2020 alleges overconcentration in private placements and failure to supervise. A $150K settlement was reached.

The ex-Landolt Securities broker has consented to the entry of judgment in the SEC’s case without denying or admitting to the findings. The regulator is seeking disgorgement of ill-gotten gains.

Submitting a FINRA Arbitration Claim for Broker Misconduct

If you suffered losses while Anthony Cottone was a registered representative with Landolt Securities or another brokerage firm, you might be able to pursue a FINRA arbitration claim for damages. However, you should know that there are likely two statutes of limitations you are dealing with:

FINRA Arbitration Eligibility: Under Rule 12206, investors have six years from the date of the event to initiate arbitration proceedings.
Federal or state laws that may apply that have shorter limitations statutes and may impact whether your FINRA arbitration case, depending on the timing, will be allowed to proceed. This is why it is so crucial that you contact a knowledgeable broker misconduct attorney as soon as possible.

Savvy Broker Misconduct Lawyers

SSEK Law Firm can help you determine whether you have grounds to pursue an investor claim to recover damages. Call our Florida investment fraud attorneys at (813) 560-2992. Throughout the US, call SSEK Law Firm at (800) 259-9010.