Anthony Cantone Barred for Refusing to Testify About Low-Priced Securities

According to FINRA, Anthony Joseph Cantone was barred from association with any FINRA member in all capacities for refusing to appear for on-the-record testimony. FINRA's investigation concerned his customers' purchases of low-priced securities and possible conflicts of interest between his outside business activities and his customers.

Low-priced securities, often called penny stocks, are frequently associated with fraud, manipulation, and unsuitable recommendations. These securities are typically highly speculative, illiquid, and subject to price manipulation. FINRA's investigation sought to examine whether Cantone's recommendations were appropriate for his customers and whether conflicts of interest influenced his recommendations.

Outside business activities can create serious conflicts when representatives recommend investments that benefit their outside ventures. For example, if a representative has a financial interest in promoting certain low-priced securities, that conflict must be disclosed to customers so they can evaluate the recommendation with full information.

Cantone's refusal to testify prevented FINRA from examining these important investor protection concerns. The bar removes him from the industry, protecting investors from a representative unwilling to answer questions about his conduct. Investors who purchased low-priced securities through Cantone should carefully review whether these investments were suitable and whether Cantone disclosed all relevant conflicts of interest. This case reinforces the high-risk nature of penny stocks and the importance of understanding your representative's motivations.

Source: FINRA disciplinary actions (PDF)