Important SEC Ruling Against Goldstone Financial Group — What You Should Know
The Securities and Exchange Commission (SEC) issued a formal order against Goldstone Financial Group, LLC and two principals — Anthony Pellegrino and Michael Pellegrino — for unlawful offering and sale of unregistered securities. Between May 2017 and June 2018, the firm sold nearly US$37 million in securities through unrelated third-party investment firm 1 Global Capital LLC, while failing to register the offering or properly disclose referral fees received (roughly US$1.6 million) to their advisory clients. The SEC found that 1 Global’s business was fraudulent: investors were misled about use of funds and expected returns, ultimately resulting in bankruptcy and substantial losses for many. The order bans Goldstone Financial Group from future violations, imposes remedial sanctions, and forces compliance reforms — including engaging an independent compliance consultant, revising disclosure policies, and retraining staff. If you’re assessing financial firms or alternative investments, this document serves as a cautionary example of why registration, transparency, and due diligence are critical.
Visit link: https://www.sec.gov/files/liti....gation/admin/2022/33
