Goodman & Nekvasil P.A., May Recover Investor Losses | Thomas Anthony Gallo (Tom Gallo), Financial Advisor Suspended from Securities Industry
Tom Gallo was previously licensed with Spartan Capital Securities, LLC, Newbridge Securities Corporation, Corinthian Partners L.L.C. and Garden State Securities, Inc. FINRA reports that Tom Gallo was suspended for 60 days on February 18, 2019. FINRA reports that Tom Gallo consented to the sanctions and to the entry of findings that he contravened Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 (Securities Act), and thereby violated FINRA Rule 2010 by negligently misrepresenting a material fact in the sale of promissory notes to two investors.
The findings stated that the purpose of the convertible promissory note offering (private placement) was to provide the company offering the promissory note a bridge loan to finance its operations until it received anticipated long-term financing through a public offering. FINRA reports that Tom Gallo’s member firm acted as placement agent on the private placement and Gallo received a total of $8,000 in compensation in connection with the investments. FINRA reports that Tom Gallo negligently represented to the investors that the company had a firm commitment offering in place. The misrepresentation was material because the company’s payment of interest on the private placements and each investor’s recovery of their principal investment depended on the company raising significant capital in the anticipated public offering and/or on the ability of the investors to sell the company stock that they received in connection with the private placement. FINRA reports that the public offering for the company was conducted on a best-efforts basis and did not raise the anticipated level of capital. Consequently, the company stock price dropped significantly, and the two investors lost money from the private placement, totaling approximately $33,337.
If you lost money on investments with Tom Gallo and believe the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action concerning Tom Gallo’s conduct. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $180 million on behalf of victimized investors. If you lost money on investments with Tom Gallo and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.