(888) 637-5510

Written by 8:50 pm Blog, Current Investigations, Securities Fraud Articles

Frank H. Zito Broker Investigation

Frank H. Zito Broker Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Financial Advisor Frank H. Zito, Merrill Lynch in Ridgeland, MS

Are you concerned about investments with Frank H. Zito in Ridgeland, MS? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

According to his FINRA BrokerCheck report, Frank H. Zito was reportedly affiliated with Merrill Lynch in Ridgeland, MS for 8 years until he was reportedly discharged after allegations in 2018, for “Conduct including failure to adhere to Firm standards regarding selling away and failure to fully disclose participation in an outside business activity.”

According to public records in November 2018, Zito was subject to regulatory sanctions in the state of Mississippi for his alleged failure to disclose outside business activities and selling away private securities while at Merrill Lynch. According to his broker record, “Zito did not disclose on his U-4 that he was effecting securities transactions and receiving commissions for his involvement with the Madison Timber company, which was later indicted for being a ponzi scheme. He was also selling away, as he did not disclose this information to his firm either.” Zito reportedly had to pay a $200,000.00 fine and was required to “complete 6 hours of financial industry related training. 3 hours focusing on ethics, and 3 on compliance. Also consented to Heightened Supervision.”

According to a press announcement in March 2019, the Madison Timber Properties, LLC Ponzi scheme began as early as 2008 and continued through April 2018.  The scheme reportedly involved two individuals who were purportedly soliciting millions of dollars of funds under false pretenses, failing to use the investors’ funds as promised, and converting investors’ funds to without the knowledge of the investors. One individual was reportedly indicted last year, and the other has been convicted and sentenced for his role in the scheme.

Upon information and belief, some FINRA registered representatives reportedly sold Madison Timber Properties to investors.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Zito’s employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee. We represent investors in FINRA arbitration claims in all 50 states, including Mississippi. Our attorneys have recovered millions of dollars from many brokerage firms in the past.

If you are concerned about your investments with Frank H. Zito, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit WhiteSecuritiesLaw.com.


Tags: , , , , , , , , , , Last modified: March 28, 2023