Money Concepts Capital Corp – Regulatory History & Broker Misconduct Investigation
The White Law Group is investigating the regulatory history and broker misconduct allegations involving Money Concepts Capital Corp (CRD#: 12963), a FINRA-registered broker-dealer. The firm has faced significant sanctions, arbitration awards, and investor complaints related to unsuitable investment recommendations, supervisory failures, and regulatory violations.
Regulatory & Arbitration Events
Money Concepts Capital Corp – Regulatory Action
In 2017, the Ohio Division of Securities sanctioned Money Concepts for selling REITs in amounts exceeding 10% of clients’ net worth, in violation of prospectus guidelines. The firm consented to a cease-and-desist order and was required to provide restitution.
Money Concepts Capital Corp – Arbitration Award
In a 2018 FINRA arbitration (Case #18-00575), customers alleged fraud, misrepresentation, breach of fiduciary duty, unsuitable investments, and supervisory failures tied to annuities, common stock, and limited partnerships. On March 13, 2019, the arbitration panel issued an award against the firm for $971,541.
Brokers with Disciplinary Histories
All broker-dealers have a responsibility to adequately supervise their employees. They must ensure the necessary procedures and systems to detect misconduct. There have been several cases of registered representatives employed by Money Concepts Capital Corp who were allegedly involved in broker misconduct and fraudulent activities.
- Dustin Paul Shafer (CRD#: 4198962) – Barred Broker
Formerly with Money Concepts Capital Corp, Shafer has been barred by both FINRA and the SEC. His record includes 23 disclosures, with numerous customer disputes alleging unsuitable recommendations and misrepresentation. - Hector Jesus Hernandez (CRD#: 4654126) – Barred Broker
Formerly with Money Concepts Capital Corp, Hernandez was barred by FINRA in 2023 after refusing testimony in an investigation into undisclosed outside business activities. His record shows 3 disclosures, including a $700,000 customer settlement in 2022 over allegations of unsuitable annuity switches, breach of contract, and undisclosed commission-sharing arrangements. - Christopher John Passero (CRD#: 2517681) – Active Broker
Currently registered with Money Concepts Capital Corp, Passero has 10 disclosures, including multiple customer disputes tied to unsuitable GPB and REIT investments, as well as regulatory actions. In 2022, FINRA suspended him for three months and fined him for allegedly secretly compensating clients for losses and making an undisclosed loan. - Ronald Joseph Giovino Jr. (CRD#: 2236071) – Barred Broker
Formerly with Money Concepts Capital Corp, Giovino was barred by FINRA in 2021 after failing to provide documents in an investigation into allegations of possible conversion of customer funds. His record lists 7 disclosures, including a 2023 customer dispute settled for $70,000.
Risks for Investors
The history of broker misconduct and firm-level sanctions at Money Concepts Capital Corp highlights ongoing risks for investors. Customer complaints often involve illiquid alternative investments such as non-traded REITs, limited partnerships, and annuities—products that may carry high commissions and significant risks.
Recovery Options for Investors
If you suffered losses with a Money Concepts broker, you may be able to recover damages through a FINRA arbitration claim. Unlike a class action, FINRA arbitration is a private process specifically designed for investor disputes with financial advisors and brokerage firms. The attorneys at The White Law Group have handled hundreds of FINRA arbitration claims against brokerage firms, including cases involving unsuitable investment recommendations, misrepresentation, and supervisory failures.
Free Consultation
If you invested with Money Concepts Capital Corp and have concerns about your accounts, contact The White Law Group at (888) 637-5510 for a free consultation with a securities attorney. For more information, please visit our website: www.whitesecuritieslaw.com.
FAQs
What products are linked to complaints at Money Concepts?
Investor disputes have often involved non-traded REITs, limited partnerships, and annuities, which are high-risk and illiquid.
Has Money Concepts Capital Corp been sanctioned by regulators?
Yes. The firm has faced state regulatory sanctions, including a 2017 Ohio cease-and-desist order, and has been subject to arbitration awards for supervisory failures.
How can I recover losses from unsuitable investments?
Investors may pursue claims through FINRA arbitration, which can provide recovery for damages tied to unsuitable investment recommendations.
