Monday, November 23, 2015

FINRA Charges Cantone Research Inc.,and President Anthony Cantone

FINRA announced that it has filed a complaint against Cantone Research Inc. (CRI), of Tinton Falls, NJ, and its President, Anthony J. Cantone (Cantone), charging fraud in connection with the sales and subsequent extensions of more than $8 million of certificates of participation (COP) in five promissory notes. 
LogoAccording to the SEC, four of the five relevant promissory notes have defaulted, resulting in approximately $6 million in losses to investors. 
According to the complaint, the promissory notes at issue were executed on behalf of one of several entities controlled by Christopher Brogdon, an individual who worked in the assisted living and nursing home industry. Under the terms of the COP Brogdon would use investors' funds to purchase and/or redevelop a nursing home, assisted living facility or other real-estate that he controlled. 
In return, investors were promised 10 percent interest in addition to the return of their principal. The complaint alleges that at the time that CRI and Cantone solicited investors to purchase the COP, and later, when CRI and Cantone extended certain of the COP, CRI and Cantone either misrepresented or failed to disclose material information to investors that cast substantial doubt on Brogdon's ability to successfully make the required principal and interest payments.
While FINRA makes a number of claims regarding the investments which harmed investors if true, FINRA will not recover an investor's losses Investors will need to retain their own attorneys to receover their losses. 
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