Unregistered Advisors Perpetrate Scheme While Concealing Disciplinary Histories

Posted on April 22nd, 2022 at 1:48 PM
Unregistered Advisors Perpetrate Scheme While Concealing Disciplinary Histories

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has filed suit against two unregistered advisors for hiding their disciplinary records from investors while engaging in a scheme that generated at least $9 million. 

Joseph DeVito and Dean Esposito allegedly solicited investments in Property Income Investors LLC, which purportedly was created to purchase and renovate multifamily properties. However, the SEC alleges that the sales were completed in violation of orders entered after past SEC enforcement actions, according to the suit filed in the U.S. District Court for the Southern District of Florida. DeVito and Esposito allegedly failed to inform potential investors about their disciplinary records, “including that they were enjoined from violating the offering and broker-dealer registration provisions and the antifraud provisions of both the Securities Act and the Exchange Act and had full associational and penny stock bars entered against them”, according to the SEC. 

The SEC further alleged that the unregistered advisors referred to themselves as “Dean Anthony” and “Salvatore DeVito” when talking to potential investors in an effort to hide their true identities and disciplinary histories. Property Income Investors paid Esposito and DeVito commissions of $245,750 and $246,750, respectively, according to the SEC. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 

Tags: eccleston law, sec, financial advisors

Return to Archive

TESTIMONIALS

Previous
Next

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

September 15, 2025
California Young-Gun Investor Charged in Alleged $6 Million Ponzi Scheme

Federal prosecutors have accused Mihir Deepak Sukthankar, a California resident once celebrated as a teenage trading “prodigy,” of orchestrating a multi-million-dollar Ponzi scheme.

September 12, 2025
LPL Broker Fined and Suspended for Recommending Risky Investments to Elderly Client

An LPL Financial broker in Elizabethtown, Kentucky, has agreed to sanctions after FINRA found he violated Regulation Best Interest (Reg BI) when recommending unsuitable investments to an elderly customer.

 

September 11, 2025
Montana Federal Judge Allows Family's Premium Financing Claims to Proceed

A federal judge in Montana has allowed a family to move forward with negligence, fraud, and unjust enrichment claims tied to a premium-financed life insurance arrangement valued at $67.5 million.