Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Thomas Diamante (CRD # 1645257) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into the sales of securities in private placement offerings.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Diamante.
Registration Background for Thomas Diamante
Mr. Diamante first became registered in the securities industry in 1987. He was most recently registered with Babylon Village, NY based SW Financial. (CRD # 145012) from January 2008 to April 2023. His prior registrations include Empire Financial Group, Inc. (CRD # 28759) from May 2006 to November 2006, and Atlas Capital Services, LLC (CRD # 103935) from March 2001 to January 2006.
FINRA’s Allegations Against Thomas Diamante
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated May 12, 2023 (No. 2020065599102), Mr. Diamante consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between January 2018 and December 2021, [Mr.] Diamante engaged in a practice and course of business that deceived investors in connection with the sale of private placement offerings of pre-initial public offering (pre-IPO) funds (the Offerings)”;
- “In the offering documents, SW Financial stated it would receive a ten percent sales commission from its sale of the Offerings. [Mr.] Diamante, however, had entered into an agreement with the issuer whereby SW Financial would receive an additional five percent in selling compensation, as well as half of any carried interest. [Mr.] Diamante then failed to disclose to others at SW Financial that the firm would earn additional compensation”;
- “Additionally, between January 2018, and December 2021, [Mr.] Diamante failed to reasonably supervise the Offerings”;
- “[Mr.] Diamante failed to perform reasonable due diligence for the Offerings, failed to complete due diligence checklists, and failed to ensure that the offering documents contained accurate information”;
- By virtue of his actions, Mr. Diamante violated FINRA Rule 2010 regarding standards of commercial honor and principles of trade, 17(a)(2) and (3) of the Securities Act of 1933 regarding deceptive practices and fraud, and FINRA Rule 3110 regarding supervision.
FINRA Suspends Thomas Diamante from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s May 12, 2023 AWC also indicates that Mr. Diamante consented to the following sanction(s):
- A nine-month suspension from association with any FINRA member in all capacities;
- A three-month suspension in all principal capacities, to run consecutively with the all-capacities suspension;
- A fine in the amount of $50,000.00; and
- Requalifying as a general securities principal or investment banking representative.
Thomas Diamante Has No Prior History of Securities Industry Customer Complaints
In addition to Mr. Diamante being suspended by FINRA from the securities industry after an investigation into the sales of securities in private placement offerings, FINRA BrokerCheck for Mr. Diamante reveals that he has no prior history of customer complaints and/or customer-initiated arbitrations.
Have You Lost Money with Thomas Diamante?
If you or someone you know has or had a brokerage account with Mr. Thomas Diamante and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.