SEC bars broker-adviser Frank Mazzola

Charges participation in securities sales without being registered

Jan 19, 2018 @ 12:41 pm

By InvestmentNews

The Securities and Exchange Commission has barred former broker and registered investment adviser Frank Mazzola of Upper Saddle River, N.J., for participating in securities sales when he was no longer registered.

The SEC said that from 2009 to 2014, Mr. Mazzola was a registered representative of Felix Investments, which was expelled by the Financial Industry Regulatory Authority in August 2014. He also was the manager of Saddle River Advisors (SRA), which advised pooled investment vehicles; and of SRA Management, which was the managing member and an adviser to three pooled investment vehicles.

The Commission's complaint alleged that SRA raised over $53 million from investors in early-to-late-stage, pre-IPO technology companies, most of which are based in the San Francisco Bay Area. Saddle River and SRA Management allegedly promised investors that their money would be used only to buy shares in the specific pre-IPO companies they were interested in and to pay specified fees. Instead, Mr. Mazzola's uncle allegedly diverted about $2.7 million in investor money to Mr. Mazzola and his wife.

Much of the fraud concerned the sale of the shares of Facebook, according to an article by Business Insider.

The SEC said that Mr. Mazzola also allegedly continued to be associated with Saddle River and Felix Investments and engaged in the offer and sales of securities after he had been issued a three-year bar by the SEC in 2014 and a permanent bar issued by Finra at that time.

Mr. Mazzola began his career at CS First Boston in 1994 and worked at five other firms — where he was involved in seven customer disputes — until 2006, when he joined Advanced Equities. That firm was expelled by Finra in 2009, when he joined Felix Investments.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Why a #MeToo story about the financial advice industry was important to do

Reporter Greg Iacurci and editorial director Fred Gabriel discuss the survey behind our cover story on sexual harassment in the workplace.

Video Spotlight

We started as a boutique firm with huge ambitions. Schwab was a perfect fit.

Sponsored by Schwab Advisor Services

Recommended Video

Keys to a successful deal

Latest news & opinion

10 millennials making their mark in Washington — and beyond

These next-generation leaders are raising their voices and gaining influence over financial advice regulation and legislation.

Warburg Pincus among private equity managers interested in acquiring Kestra Financial

Sources say Kestra is being valued at between $600 million and $800 million, about eight to 10 times EBITDA.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Former Merrill Lynch star broker Thomas Buck sentenced to 40 months in prison

He pleaded guilty to securities fraud in 2017; charged clients excessive commissions.

Rules for claiming Social Security at 70

Some individuals' benefits will begin automatically; others have to take action.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print