Vincent Anthony Virga, Formerly of Madison Avenue Securities, Named in Customer Dispute Alleging Recommendations of Unsuitable Alternative Investments

INVESTORS: Former Madison Avenue Securities broker Vincent Anthony Virga was named in a customer dispute alleging recommendation of unsuitable alternative investments.

Vincent Anthony Virga (CRD#: 5070668) was registered as a broker with Madison Avenue Securities from 2009 until 2021. Previously, Virga was registered as a broker with Prime Capital Services from 2006 until 2009.

Virga has five disclosures on his BrokerCheck report. 

October 2021 Customer Dispute

Status: Pending

Allegations: Unsuitable recommendations of alternative investments.

Damage Amount Requested: $150,000.00

August 2021 Customer Dispute

Status: Pending

Allegations: Claimants allege unsuitable recommendations of multiple alternative investments, including GPB

July 2021 Regulatory Judgment

Status: Final

Initiated By: State of Florida, Department of Financial Services

Allegations: On July 15th, 2021 The State of Florida, Department of Financial Services conducted an investigation as a result of allegations that on November 20, 2020 the Financial Industry Regulatory Authority (FINRA) took action against Vincent Virga by issuing a Letter of Acceptance, Waiver, and Consent suspending him from association with any FINRA member in any capacity for one (1) month due to him failing to disclose available cost savings in mutual fund transactions resulting in the customer unnecessarily paying nineteen thousand six hundred eighty-seven dollars ($19,687.00) in sales charges.

Resolution: Consent

Sanctions: Civil and Administrative Penalty(ies)//Fine(s)

Amount: $1,500.00

Sanctions: Vincent Virga shall be placed on probation pursuant to section 626.691, Florida Statues, for a period of one (1) year. As a condition of probation, Vincent shall strictly adhere to all provisions of the Florida Insurance Code and Rules of the Department. If, during the period of probation, the Department has good cause to believe that Vincent has violated the terms or conditions of this probation it shall initiate administrative action to suspend or revoke his license and appointments.

June 2021 Customer Dispute

Status: Pending

Allegations: Claimants allege unsuitable recommendations of multiple alternative investments in 2015, failure to supervise

Damage Amount Requested: $495,000.00

November 2020 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Virga consented to the sanctions and to the entry of findings that he recommended that a customer purchase $480,000 in mutual funds, but failed disclose to the customer available cost savings, including those provided through rights of accumulation, breakpoint levels, and choosing to purchase mutual funds in the same fund family. The findings stated that based on Virga’s recommendations, a retired customer invested in six mutual funds in five different fund families. The customer paid $80,000 for each mutual fund investment, totaling $480,000. These investments were part of a larger investment plan that Virga had recommended for the customer. Although the customer received some breakpoint discounts for the mutual funds purchased, he still paid $19,687 in sales charges (fees and commissions). Virga failed to disclose to the customer available cost savings based on a right of accumulation arising from the customer’s existing mutual fund investments held at another broker-dealer firm, of which Virga was aware, or should have been aware. Further, Virga failed to disclose to the customer that even greater cost savings were available, including, potentially, paying no sales charges whatsoever, if the customer purchased mutual funds in one or two fund families, such as the fund family in which the customer was already invested at the other broker-dealer firm.

Resolution: Acceptance, Waiver & Consent(AWC)

Sanctions: Civil and Administrative Penalty(ies)//Fine(s)

Amount: $5,000.00

Sanctions: Suspension

Registration Capacities Affected: All Capacities

Duration: One Month

Start Date: 12/21/2020

End Date: 1/20/2021

Broker Comment: This matter is the result of my providing a former client with investments that matched his requested features and stated objectives. The underlying customer is an experienced, high net worth investor to whom I provided complete and full disclosure in advance of his first investment with me. The customer, who expressly rejected a fee based, fiduciary relationship, directed me how to proceed on his behalf and in particular, his preference for a transactional compensation arrangement, like his other brokerage relationship, to accomplish his investment objectives and goals, which i achieved through careful selection, diversification and portfolio design. I believe that I provided the highest quality of service and true diversification which also included the benefit of discounted breakpoints, albeit not to the degree deemed sufficient for the regulatory agency. In my over 30 years in the financial services industry, this is the only instance of any disciplinary action against me in an otherwise impeccable career. I elected to resolve this matter to put it behind me.

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