David John Melilli, Formerly of Sagepoint Financial, Named in FINRA Investigation Alleging Recommendation of Unsuitable Investments

Melilli is also accused of making unauthorized trades 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.

April 2021 Investigation

• Initiated By: FINRA
• Description of Investigation: FINRA Case #20190636810: On April 1, 2021, FINRA made a preliminary determination to recommend that disciplinary action be brought against Melilli alleging violations of FINRA Rules 2111, 2360(b)(19)(A), 2360(b)(19)(B) and 2010 – unsuitable and excessive trading in customer accounts; Violation of NASD Conduct Rule 2510(b) and FINRA Rules 3260(b), 2360(b)(18)(A), 2360(b)(18)(B) and 2010 – using discretion without written authorization in customer accounts; Violation of FINRA Rule 2010 – unauthorized trading in the account of a deceased customer; Violation of FINRA Rules 4511 and 2010 – forging customer signatures on account documents and causing member firm to maintain inaccurate books and records; Violation of FINRA Rules 2210, 2220 and 2010 – sending written communication entitled “Writing Covered Calls” to customer without obtaining prior approval from member firm and use of a misleading communication with a customer; Violation of FINRA Rules 4511 and 2010 – using text messages to conduct securities-related business, in violation of applicable firm policies, and causing firms to violate Regulation S-P and maintain inaccurate books and records; Violation of FINRA Rules 3210 and 2010 – opening and maintaining multiple outside securities accounts without the prior written consent of member firms.

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.