According to FINRA, Anthony Joseph Cantone (CRD #1066139), formerly associated with Cantone Research Inc. and based in Thompson, Pennsylvania, was barred from the securities industry on March 11, 2024. Along with the firm and another individual, Cantone was found jointly and severally liable to pay $4,777,425.69 plus interest in restitution to harmed investors.The disciplinary action arose from Cantone's willful violations of MSRB Rule G-19, which requires that recommendations of municipal securities be suitable for the customer based on information obtained through reasonable diligence. FINRA found that Cantone sold municipal bonds without a reasonable basis to believe the investments were suitable for the customers to whom they were recommended.Cantone's misconduct was particularly egregious in its scope. He was found to have conducted inadequate due diligence on two separate municipal bond offerings — one valued at approximately $2.2 million and another exceeding $6 million. Despite clear warning signs, including the withdrawal of a previous underwriting firm from one of the offerings, Cantone failed to probe the reasons behind that withdrawal. A reasonable securities professional would have treated such a withdrawal as a serious red flag warranting thorough investigation.Beyond the due diligence failures, FINRA found that Cantone overstated revenue projections and understated management fees associated with the offerings. He also made fraudulent misrepresentations about an assisted-living facility that was the subject of one of the bond offerings. Bonds were sold to customers using negligent misrepresentations and material omissions, effectively denying investors the accurate information they needed to assess the risks of their investments.A bar from the securities industry is the most severe sanction FINRA can impose on an individual, permanently prohibiting the person from associating with any FINRA member firm in any capacity. This penalty reflects the gravity of the misconduct involved, particularly the fraudulent nature of the misrepresentations made to investors.This case serves as an important reminder for investors about the risks that can arise even with investments perceived as relatively safe, such as municipal bonds. Investors should carefully evaluate the credentials and disciplinary history of any broker recommending investments, which can be checked through FINRA's BrokerCheck tool. When a broker overpromises returns or downplays risks and fees, investors should proceed with extreme caution. The suitability of any investment depends on individual circumstances, and brokers have an obligation to ensure their recommendations are appropriate. (FINRA Case #2017055886402)