Michael Steven Cimilluca – 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 Michael Steven Cimilluca.
BrokerComplaints.com is currently investigating allegations related to Michael Steven Cimilluca. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Michael Cimilluca
Michael Steven Cimilluca is an Investment Adviser. Michael Steven Cimilluca’s Central Registration Depository (CRD) number is 2406733 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2406733.
Click here to download a Detailed Audit Report for Michael Steven Cimilluca.
Michael Steven Cimilluca 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 Michael Steven Cimilluca’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 7/16/2008
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: FLORIDA OFFICE OF FINANCIAL REGULATION
- Allegations: VIOLATIONS FLORIDA SECURITIES AND INVESTOR PROTECTION ACT, CHAPTER 517, FLORIDA STATUTES.
- Resolution: Order
- Sanction Details :: Sanctions: Cease and Desist Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $5,000.00
DISCLOSURE 2 –
- Event Date: 1/4/2008
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC ADMINISTRATIVE PROCEEDING RELEASE NO.’S 34-57101 AND 40-2690, JANUARY 4, 2008: THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (COMMISSION) ANNOUNCED THE ISSUANCE OF AN ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTIONS 203(E) AND 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (ORDER) AGAINST MICHAEL CIMILLUCA, JR. AND OTHERS (COLLECTIVELY, THE ESPONDENTS). THE ORDER IS BASED ON THE ENTRY OF A PERMANENT INJUNCTION AGAINST THE RESPONDENTS FOR VIOLATING SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT), RULE 10B-5 PROMULGATED THEREUNDER, SECTIONS 204, 206(1), 206(2) AND 207 OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT) AND RULES 204-1(A)(2) AND 204-2(A)(8) THEREUNDER, BASED ON THE DISTRICT COURT’S FINDINGS THE RESPONDENTS ENGAGED IN AN ILLEGAL CHERRY-PICKING SCHEME. THE SEC ALLEGES IN THE ORDER THAT FROM SEPTEMBER 2002 THROUGH AT LEAST JUNE 2006 THE RESPONDENTS, KNOWINGLY OR RECKLESSLY, ENGAGED IN AN ILLEGAL CHERRY-PICKING SCHEME THAT NETTED THE RESPONDENTS $4.5 MILLION DOLLARS WHILE PASSING MORE THAN $9 MILLION OF LOSSES ONTO UNSUSPECTING ADVISORY CLIENTS. THE SEC ALSO ALLEGES THAT FOLLOWING A NINE-DAY BENCH TRIAL, THE DISTRICT COURT ENTERED A PERMANENT INJUNCTION AND FINAL JUDGMENT AGAINST ALL RESPONDENTS, PERMANENTLY ENJOINING THEM FROM FUTURE VIOLATIONS OF SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER, SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTIONS 204, 206(1), 206(2) AND 207 OF THE ADVISERS ACT AND RULES 204-1(A)(2) AND 204-2(A)(8) THEREUNDER. THE DIVISION ALLEGES THE DISTRICT COURT ALSO HELD THE RESPONDENTS JOINT AND SEVERALLY LIABLE FOR DISGORGEMENT OF $4,796,147 IN ILL-GOTTEN GAINS PLUS PREJUDGMENT INTEREST. ADDITIONALLY, THE COURT IMPOSED THIRD-TIER CIVIL PENALTIES OF $250,000 ON CIMILLUCA.
- Resolution: Order
- Sanction Details :: Sanctions: Bar
- Sanction Details: SEC ADMINISTRATIVE PROCEEDING RELEASE NO.’S 34-57403 AND 40-2710, FEBRUARY 29, 2008: THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) ISSUED ITS ORDER INSTITUTING PROCEEDINGS (OIP) ON JANUARY 4, 2008, PURSUANT TO SECTION 15(B) OF THE SECURITIES AND EXCHANGE ACT OF 1934 (EXCHANGE ACT) AND SECTIONS 203(E) AND 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT). CIMILLUCA HAS NOT FILED AN ANSWER TO THE OIP AND THE TIME TO FILE AN ANSWER HAS EXPIRED. ON FEBRUARY 4, 2008, CIMILLUCA FAILED TO PARTICIPATE IN TELEPHONIC PREHEARING CONFERENCE. ON FEBRUARY 15, 2008, THE DIVISION FILED A MOTION FOR DEFAULT, TO WHICH CIMILLUCA HAS NOT RESPONDED AND FOR WHICH THE TIME TO RESPOND HAS PASSED. ACCORDINGLY, CIMILLUCA IS IN DEFAULT FOR FAILING TO SUBMIT AN ANSWER, FOR FAILING TO APPEAR AT A PREHEARING CONFERENCE, AND FOR FAILING TO RESPOND TO A DISPOSITIVE MOTION. IT IS ORDERED THAT, PURSUANT TO SECTION 15(B)(6) OF THE SECURITIES EXCHANGE ACT OF 1934, MICHAEL CIMILLUCA, JR., IS BARRED FROM ASSOCIATION WITH ANY BROKER OR DEALER. IT IS FURTHER ORDERED THAT, PURSUANT TO SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940, MICHAEL CIMILLUCA, JR., IS BARRED FROM ASSOCIATION WITH ANY INVESTMENT ADVISER.
DISCLOSURE 3 –
- Event Date: 4/27/2005
- Disclosure Type: Civil
- Disclosure Resolution: Final
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC LITIGATION RELEASE 19209, APRIL 27, 2005; THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) FILED A COMPLAINT IN THE UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF FLORIDA, AGAINST DEFENDANTS ALLEGING VIOLATIONS OF THE ANTIFRAUD, RECORDKEEPING, AND INVESTMENT ADVISER REPORTING PROVISIONS OF THE FEDERAL SECURITIES LAWS. THE COMMISSION COMPLAINT CHARGES CIMILLUCA WITH AIDING AND ABETTING VIOLATIONS OF SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER AND SECTIONS 206(1) AND 206(2) OF THE ADVISERS ACT.
- Resolution: Judgment Rendered
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $250,000.00 Sanctions: Disgorgement/Restitution Sanctions: Cease and Desist/Injunction
- Sanction Details: SEC LITIGATION RELEASE 20425, JANUARY 8, 2008: THE SECURITIES AND EXCHANGE COMMISSION ANNOUNCED THAT ON DECEMBER 19, 2007, THE UNITED STATES MAGISTRATE JUDGE FOR THE SOUTHERN DISTRICT OF FLORIDA, ENTERED JUDGMENTS AGAINST MICHAEL CIMILLUCA (CIMILLUCA), AND OTHERS FINDING RESPONDENTS LIABLE FOR VIOLATIONS OF THE ANTI-FRAUD AND BOOKS AND RECORDS PROVISIONS OF THE FEDERAL SECURITIES LAWS, AFTER A NINE DAY BENCH TRIAL THAT COMMENCED ON SEPTEMBER 10, 2007. THE COURT JUDGMENT ENJOINS CIMILLUCA FROM AIDING AND ABETTING VIOLATIONS OF SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER AND SECTIONS 206(1) AND 206(2) OF THE ADVISERS ACT. THE JUDGMENT HOLDS THE DEFENDANTS JOINTLY AND SEVERALLY LIABLE FOR DISGORGING $4.5 MILLION IN PROFITS THEY OBTAINED FROM THE CHERRY-PICKING SCHEME AND $296,147 IN PROFITS FROM CIMILLUCA’S ACCOUNT AND RELATED ACCOUNTS WHERE HE PLACED 99.65% WINNING TRADES. THE DEFENDANTS ARE ALSO ORDERED TO JOINTLY AND SEVERALLY PAY PRE-JUDGMENT INTEREST OF $983,586 ON THE $4.5 MILLION IN ILL-GOTTEN GAINS AND $74,779 ON THE $296,147 CIMILLUCA DIVERTED. ADDITIONALLY, THE COURT IMPOSED THIRD-TIER CIVIL PENALTIES OF $250,000 ON CIMILLUCA.
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.
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.
- K.W. BROWN INVESTMENTS (CRD#: 16492) :: 9/27/2002 – 1/18/2008 :: DELRAY BEACH, FL
- NOBLE INTERNATIONAL INVESTMENTS, INC. (CRD#: 15768) :: 5/30/1995 – 9/9/2002 :: BOCA RATON, FL
- PRUDENTIAL SECURITIES INCORPORATED (CRD#: 7471) :: 6/23/1994 – 4/4/1995 :: NEW YORK, NY
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 Michael Steven Cimilluca, 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 Michael Cimilluca
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Michael Steven Cimilluca – 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 (2406733) for the broker – Michael Steven Cimilluca
- 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.
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