Anthony Leon Semadeni Audit (2023) – A Scam or Legit Broker?

Anthony Leon Semadeni  – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).

If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.

Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Anthony Leon Semadeni.

BrokerComplaints.com is currently investigating allegations related to Anthony Leon Semadeni. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About Anthony Semadeni

Anthony Leon Semadeni is an Investment Adviser. Anthony Leon Semadeni’s Central Registration Depository (CRD) number is 2601121 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2601121.

Click here to download a Detailed Audit Report for Anthony Leon Semadeni.

Anthony Leon Semadeni has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.

Accusations and Disclosures

You can find below, a quick snapshot of Anthony Leon Semadeni’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 9/17/2014
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA:
• Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
• Allegations: SEC ADMIN RELEASE 34-73130; IA RELEASE 40-3922 / SEPTEMBER 17, 2014: THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT) AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT) AGAINST ANTHONY LEON SEMADENI (SEMADENI OR ESPONDENT). IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT (THE OFFER) WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THE PURPOSE OF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGS BROUGHT BY OR ON BEHALF OF THE COMMISSION, OR TO WHICH THE COMMISSION IS A PARTY, RESPONDENT ADMITS THE COMMISSION’S JURISDICTION OVER HIM AND THE SUBJECT MATTER OF THESE PROCEEDINGS AND THE FINDINGS, AND CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS. ON APRIL 10, 2012, SEMADENI PLED GUILTY TO ONE COUNT OF ATTEMPTED THEFT IN VIOLATION OF COLO. REV. STAT. u00a7u00a7 18-4-401(1) AND (2)(C) AND 18-2-101, A CLASS FIVE FELONY, BEFORE THE DISTRICT COURT, EL PASO COUNTY, COLORADO, IN CASE NO. 2011CR001905. ON JUNE 19, 2012, A JUDGMENT IN THE CRIMINAL CASE WAS ENTERED AGAINST SEMADENI. SEMADENI WAS SENTENCED TO THREE YEARS OF PROBATION AND ORDERED TO PAY RESTITUTION IN THE AMOUNT OF $46,000.42.
• Resolution: Order
• Sanction Details :: Sanctions: Bar (Permanent)
• Sanction Details :: Registration Capacities Affected: SEE COMMENT
• Start Date: 9/17/2014

DISCLOSURE 2 – 

• Event Date: 10/4/2011
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: 2010021983501
• DocketNumberAAO: 2010021983501
• Initiated By: FINRA
• Allegations: FINRA RULES 2010, 8210, NASD RULES 2110, 2370: SEMADENI BORROWED A TOTAL OF $85,000 FROM CUSTOMERS AND A NON- CUSTOMER, WHILE ASSOCIATED WITH HIS MEMBER FIRM. SEMADENI BORROWED $10,000 FROM A CUSTOMER FOR WHOM HE WAS THE ASSIGNED REGISTERED REPRESENTATIVE; TO DOCUMENT THE LOAN THE CUSTOMER AND SEMADENI EXECUTED A PROMISSORY NOTE; SEMADENI REPAID THE CUSTOMER ALL BUT $3,050 OF WHAT HE OWED HER; UPON DISCOVERY OF THE LOAN THE FIRM PAID THE CUSTOMER THE REMAINING $3,050 OWED TO HER. SEMADENI BORROWED $20,000 FROM A CUSTOMER FOR WHOM HE WAS THE ASSIGNED REGISTERED REPRESENTATIVE; SEMADENI RECOMMENDED THAT THE CUSTOMER LIQUIDATE A VARIABLE ANNUITY IN ORDER TO OBTAIN THE FUNDS WHICH SHE THEN LENT TO HIM; SEMADENI SIGNED A PROMISSORY NOTE AGREEING TO PAY THE LOAN WITH INTEREST; THE CUSTOMER SECURED THE PROMISSORY NOTE WITH A DEED OF TRUST ON SEMADENI’S RESIDENCE; WHEN THE CUSTOMER LIQUIDATED HER ANNUITY SHE INCURRED AN EARLY WITHDRAWAL PENALTY; THE CUSTOMER WAS NOT AWARE THAT THE PENALTY WOULD BE IMPOSED AND SEMADENI DID NOT DISCLOSE THIS TO HER; SEMADENI HAS ONLY REPAID $4,000 TO THE CUSTOMER. SEMADENI BORROWED $25,000 FROM HIS CUSTOMER AND A FRIEND OF THE CUSTOMER (WHO WAS A NON-CUSTOMER); SEMADENI HAD APPROACHED THE CUSTOMER ABOUT LIQUIDATING A VARIABLE ANNUITY SHE PURCHASED THROUGH HIM AT THE FIRM, IN ORDER TO LEND THE PROCEEDS TO HIM; THE CUSTOMER DECLINED TO LIQUIDATE THE ANNUITY; INSTEAD SHE AND HER FRIEND DECIDED TO LEND SEMADENI OTHER FUNDS THEY HAD IN SAVINGS; SEMADENI ENTERED INTO A PROMISSORY NOTE AGREEING TO PAYMENT SPECIFICATION; THE CUSTOMER AND NON-CUSTOMER SECURED THE PROMISSORY NOTE WITH A DEED OF TRUST ON SEMADENI’S HOME; SEMADENI HAS ONLY REPAID $9,000 TO THE CUSTOMER AND NON-CUSTOMER. SEMADENI BORROWED $30,000 FROM A CUSTOMER; THE CUSTOMER ENTERED INTO A PROMISSORY NOTE WITH HIM REFLECTING THAT HE WAS TO REPAY THE FUNDS; THERE WAS A RELATED DEAL OF TRUST AND PAYMENT SPECIFICATIONS; SEMADENI’S FAILURE TO PROVIDE INFORMATION HAS PREVENTED FINRA FROM DETERMINING WHETHER HE HAS REPAID ANY PORTION OF THE LOAN. SEMADENI’S FIRM PROHIBITED BORROWING OR LENDING MONEY OR SECURITIES TO A CUSTOMER WITH EXCEPTIONS, AND PROVIDED THAT ANY SUCH LOANS ALSO REQUIRED PRIOR WRITTEN APPROVAL FROM THE FIRM; THE LOANS TO SEMADENI DID NOT MEET THE CONDITIONS OF THE EXCEPTIONS; THE FIRM DID NOT PRE-APPROVE ANY LENDING OR BORROWING ARRANGEMENTS FOR SEMADENI; IN ADDITION, THE FIRM HAS NO RECORD OF ANY REQUEST SUBMITTED BY SEMADENI TO ENGAGE IN ANY BORROWING AND/OR LENDING ARRANGEMENTS. SEMADENI MISLED HIS FIRM BY ANSWERING QUESTIONS AS HE DID ABOUT BORROWING FUNDS FROM CUSTOMERS AND SIGNING FIRM COMPLIANCE WORKSHEET; SEMADENI WAS AWARE OF THE FIRM’S POLICY ON BORROWING FROM CUSTOMERS; HE INDICATED HE UNDERSTOOD ITS POLICY WHEN COMPLETING THE ANNUAL COMPLIANCE CHECKLISTS. SEMADENI FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION AND DOCUMENTS AND PROVIDED FINRA WITH A MISLEADING RESPONSE.
• Resolution: Decision
• Sanction Details :: Sanctions: Bar (Permanent)
• Sanction Details :: Registration Capacities Affected: All Capacities
• Duration: Indefinite
• Start Date: 3/20/2012 Sanctions: Restitution
• Sanction Details :: Amount: $62,000.00
• Regulator Statement: DEFAULT DECISION RENDERED FEBRUARY 21, 2012 WHEREIN SEMADENI IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR FAILING TO RESPOND TO FINRA REQUESTS FOR INFORMATION AND ORDERED TO PAY $16,000, EACH, PLUS INTEREST, ON THE UNPAID BALANCES IN RESTITUTION TO TWO CUSTOMERS. SEMADENI IS ORDERED TO PAY ANOTHER INDIVIDUAL $30,000, PLUS INTEREST, IN RESTITUTION ON THE UNPAID PRINCIPAL BALANCE AT THE RATE OF 7.5% PER YEAR UNTIL PAID, LESS PAYMENTS OF INTEREST OR PRINCIPAL THE INDIVIDUAL RECEIVED FROM SEMADENI AND ANY RESTITUTION THE INDIVIDUAL RECOVERED THROUGH ARBITRATION OR ANY OTHER AVENUE. DECISION IS FINAL MARCH 20, 2012.

According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.

FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.

Previous Associations

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.

• WORLD GROUP SECURITIES, INC. (CRD#: 114473) :: 4/12/2002 – 3/19/2010 :: CENTENNIAL, CO
• WMA SECURITIES, INC. (CRD#: 32625) :: 2/23/2001 – 4/12/2002 :: DULUTH, GA
• WMA SECURITIES, INC. (CRD#: 32625) :: 5/2/1995 – 2/6/2001 :: DULUTH, GA

The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.

Legit or Not?

Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Anthony Leon Semadeni, but not limited to)  can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.

There are 10 major types of complaints we receive against Investment Brokers –

• Outright Theft (Conversion of Funds)
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Excessive Trading (Churning)
• Lack of Diversification
• Unsuitable Investment Recommendations
• Failure to Disclose a Personal Conflict of Interest
• Front Running of Transactions
• Breakpoint Sale Violations
• Negligent Portfolio Management

Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet. 

How to Protect Yourself

We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.

Here are 5 signs that your broker needs to be reported –

• Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
• Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
• Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
• Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
• Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
• Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.

Report Anthony Semadeni

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

Anthony Leon Semadeni – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.

Click here to go to FINRA’s Online Complaint Form →

This form will ask you for specific information related to your complaint. Be prepared by gathering the following:

• Name and symbol for the investment product in question.
• The CRD number (2601121) for the broker – Anthony Leon Semadeni
• Your complete contact information.

Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint.  Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.

The views and opinions expressed in these articles are those of the source BROKERCOMPLAINTS.COM and do not necessarily reflect the official position of ‘Complaints Fraud Report,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.

This article is syndicated automatically through a third-party agency from BROKERCOMPLAINTS.COM.

To view the original article at BROKERCOMPLAINTS.COM, you can visit https://brokercomplaints.com/report/anthony-leon-semadeni/.