Were you the victim of Madison Avenue Securities, LLC broker Vincent Virga (CRD# 5070668)? He was registered with Madison Avenue Securities, LLC in Bayonne, New Jersey from 2009 to 2021.
In December 2020, FINRA suspended him for one month and sanctioned him to pay a $5,000 civil and administrative penalty and fine and $19,687 in restitution. According to FINRA, “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.”
In July 2021, the State of Florida, Department of Financial Services sanctioned him to pay a $1,500 civil and administrative penalty and fine, a $1,500 monetary penalty, and a one-year probation after finding that he failed “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.”
Vincent Virga Customer Complaints
Vincent Virga has been the subject of six customer complaints between 2018 and 2023, according to his CRD report:
November 2023. “Claimants allege unsuitable recommendations of alternative investments, primarily in NorthStar Healthcare REIT. The dates vary for the numerous claimants listed.” The complaint was related to direct investments and real estate securities losses.
October 2021. “Unsuitable recommendations of alternative investments.” The customer sought $150,000 in damages, and the case was settled for $45,000. The complaint was related to direct investment losses.
August 2021. “Claimants allege unsuitable recommendations of multiple alternative investments, including GPB.” The case was settled for $14,900. The complaint was related to direct investment losses.
June 2021. “Claimants allege unsuitable recommendations of multiple alternative investments in 2015, failure to supervise.” The customer sought $495,000 in damages, and the case was settled for $145,000. The complaint was related to direct investment losses.
October 2018. “Client originally complained to the firm in 2018 and the complaint was denied. He then complained to FINRA, which opened an investigation and ultimately led to the disciplinary action for Virga. He claimed that he was never told there were commissions involved in the sale of the mutual funds he purchased.” The customer sought $80,000 in damages, and the case was settled for $22,141.45. The complaint was related to mutual fund investment losses.
July 2018. “Claimant alleges issues with suitability and misrepresentation pertaining to the recommendation and subsequent purchase of two REITS.” The customer sought $120,000 in damages, and the case was settled for $14,500. The complaint was related to direct investment losses.
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, Madison Avenue Securities, LLC may be liable for investment or other losses suffered by Vincent Virga’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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