David John Melilli, Formerly of Sagepoint Financial, Barred by FINRA Following Allegations of Unauthorized Trades

Melilli is also accused of recommending unsuitable investments and forging customer signatures on account documents.

David John Melilli (CRD: 5254172) was registered as a broker with Cambridge Investment Research from September 2019 until February 2020. Previously, Melilli was registered as a broker with LPL Financial in July 2018. Prior to LPL Financial, Melilli was registered as a broker with Sagepoint Financial from January 2010 until August 2019.

Melilli has six disclosures on his BrokerCheck report.

November 2021 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Melilli consented to the sanction and to the entry of findings that he refused to produce documents and information requested by FINRA in connection with its investigation into, among other things, whether he exercised discretion without written authorization in a client’s account.
• Resolutation: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All Capacities Affected
• Duration: Indefinite
• Start Date: 11/8/2021

September 2020 Customer Dispute

• Status: Pending
• Allegations: Clients allege unauthorized trading.
• Damage Amount Requested: $5,000.00

September 2020 Customer Dispute

• Status: Denied
• Allegations: Client alleges RR made risky investments that were not fully understood. Additionally, client has concerns that management fees may not have been assessed correctly and is unsure if all of his accounts transferred to and from firm.

February 2020 Customer Dispute

• Status: Pending
• Allegations: Unauthorized trading, breach of fiduciary duty, unsuitability, negligence, common law fraud, 10(b) violation and churning alleged.
• Damage Amount Requested: $140,000.00

January 2020 Employment Separation After Allegations

• Firm Name: Cambridge Investment Research, Inc.
• Termination Type: Discharged
• Allegations: Representative placed discretionary trades without authority. 

May 2019 Financial Event

• Status: Final
• Type: Compromise
• Disposition: Direct Payment Procedure

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding David Jon Melilli. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.