Investor Lawsuit Investigation – Nicholas Armellino
The White Law Group is investigating potential claims involving former financial advisor Nicholas Armellino, following a FINRA regulatory bar and multiple customer disputes related to allegations of misconduct and supervisory failures.
According to FINRA’s public records (CRD#: 3189691), Armellino was most recently affiliated with The GMS Group in Jersey City, New Jersey. He reportedly has ten disclosures on his BrokerCheck report, including a permanent regulatory bar, and several settled customer disputes.
FINRA Bar – Failure to Cooperate in Regulatory Investigation
In May 2025, FINRA announced that Armellino had been permanently barred from associating with any FINRA member in any capacity. The action stemmed from allegations that he refused to appear for on-the-record testimony in connection with a regulatory tip that prompted an investigation.
Although Armellino initially cooperated with FINRA, he reportedly ceased participation and failed to appear as requested. Without admitting or denying the allegations, he consented to the sanctions and the entry of findings.
Nicholas Armellino Customer Complaints
Armellino has been the subject of numerous customer disputes over the years. Allegations across these cases include:
- Unauthorized trading
- Unsuitable investment recommendations
- Excessive trading in leveraged accounts
- Misrepresentations related to complex products and bonds
Notable settlements include:
- In October 2011, a customer dispute alleging excessive trading settled for $63,500.
- In August 2010, a case involving unsuitable investments settled for $10,500.
- A July 2006 unauthorized trading complaint was resolved with a $43,000 settlement.
- A January 2007 dispute alleging unauthorized trades was settled for $7,000.
- A January 2007 dispute involving municipal bond disclosures settled for $11,250.
Other disputes were denied by the firm but alleged similar misconduct related to Puerto Rico bonds and limited partnership investments.
Risks of Broker Misconduct and Supervisory Failures
Brokers who engage in unauthorized or unsuitable trading may expose investors to serious financial harm—particularly when firms fail to implement proper supervision and compliance systems. FINRA requires firms to reasonably monitor broker activity to prevent and detect misconduct. Failure to supervise may result in firm liability.
Recovery Options for Investors
If you invested with Nicholas Michael Armellino and have concerns about your account activity, you may be eligible to pursue a FINRA arbitration claim. The White Law Group is investigating whether The GMS Group or other firms may be liable for failing to supervise Armellino’s conduct.
FINRA Arbitration vs. Class Action – What’s the Difference?
FINRA arbitration allows investors to bring claims on an individual basis, tailored to their specific losses and situation. This process is typically faster and more private than class actions, which involve larger groups and smaller per-investor recoveries.
Free Consultation
The White Law Group has represented investors in over 800 FINRA arbitration claims nationwide. If you suffered losses while working with Nicholas Armellino, contact our firm at 1-888-637-5510 for a free consultation.
Visit us at www.whitesecuritieslaw.com to learn more.
Frequently Asked Questions (FAQs) – Nicholas Armellino
What were the allegations involving Nicholas Armellino?
Armellino was barred by FINRA for failing to appear for testimony during a regulatory investigation. He has also been named in multiple customer disputes alleging unauthorized trading, unsuitable recommendations, and misrepresentation.
Can I recover losses if I invested with Nicholas Armellino?
Yes. Investors who suffered losses due to misconduct by Armellino may be able to recover damages through FINRA arbitration.
How does FINRA arbitration work compared to a class action?
FINRA arbitration is an individual process tailored to your specific situation. It usually resolves faster than a class action and may result in higher recovery for investors with strong claims.
Last modified: July 9, 2025
