Former SW Financial CEO Thomas Diamante (CRD# 1645257) was suspended by FINRA for nine months related to private placement offerings. He was registered with and served as CEO and majority owner of SW Financial in Babylon Village, New York, from 2008 to 2023.
In May 2023, FINRA sanctioned him to pay a $50,000 civil and administrative penalty and fine and suspended him for nine months after he consented to the sanctions and to the entry of findings that he “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).” FINRA found that he received a 10% sales commission from its sale of the offerings, plus an additional 5% selling compensation and half of any carried interest; however, he failed to disclose to others at the firm that it would earn additional compensation. In doing so, the firm “negligently misrepresented and omitted material facts to investors about the amount of compensation the firm would receive in connection with the offerings.” This conduct, according to FINRA, was engaging in negligent omissions and caused the firm to receive approximately $2 million in additional compensation. Furthermore, it was found that he “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.”
Thomas Diamante Customer Complaints
He has been the subject of two customer complaints in 2023, according to his CRD report:
June 2023. “Diamante was named in a customer complaint that asserted the following causes of action: negligence, unsuitability, fraudulent misrepresentations and omissions, securities fraud, common law fraud, breach of fiduciary duty, and breach of contract.” The customer is seeking $100,000 in damages, and the case is currently pending.
May 2023. “Thomas Diamante was named in a customer complaint that asserted the following causes of action: negligence, breach of fiduciary duty, negligent supervision.” The customer is seeking $135,000 in damages, and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, SW Financial may be liable for investment or other losses suffered by Thomas Diamante’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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