Barred Stockbroker Charged With Five Counts of Wire and Mail Fraud. Did Any Victim Do Any Due Diligence?

Claimant asserted the following causes of action: churning; unsuitable investment recommendations; breach of fiduciary duty; violation of the Michigan Uniform Securities Act of 2002; breach of contract; conversion; violations of FINRA Rule 3240; negligent supervision; and liability under agency law, respondeat superior, and/or as statutory control persons. The causes of action related to Claimant's allegations that Mastroianni engaged in "in and out" trading of the same unspecified speculative stocks in Claimant's account for the sole purpose of maximizing commissions and took two personal "loans" from Claimant. Claimant further asserted that JPT and Alexander did not properly supervise Mastroianni. 

1. Respondent Anthony Mastroianni, Jr. is liable for and shall pay to Claimant Roy N. Gruenburg the sum of $540,000.00 in compensatory damages minus any amount recovered from Alexander Capital, L.P. 

2. Counsel for Claimant Roy N. Gruenburg shall provide an affidavit to Respondent Anthony Mastroianni, Jr. indicating the amount recovered from Alexander Capital, L.P. 

3. Other than forum fees which are specified below, the parties shall each bear their own costs and expenses incurred in this matter. 

4. Any and all claims for relief not specifically addressed herein, including punitive damages, sanctions, and attorneys' fees, are denied.

Claimants asserted the following causes of action: common law fraud; breach of fiduciary duty; negligence (gross negligence); breach of contract; unsuitability; overconcentration; and negligent supervision. The causes of action relate to the following securities: Carter Validus Mission Critical REITS (CVMC REIT II), International Metal, SignPath Pharma, and Fifth Street Finance Corp, Inc.

1. Respondents are jointly and severally liable for and shall pay to Claimants the sum of $250,000.00 in compensatory damages. 

2. Respondents are jointly and severally liable for and shall pay to Claimants interest on the above-stated sum at the rate of 6% per annum from June 15, 2016 until the Award is paid in full. 

3. Any and all claims for relief not specifically addressed herein, including any requests for punitive damages and attorneys' fees, are denied.

In 2016, Mastroianni consented to being permanently barred by the Financial Industry Regulatory Authority (FINRA), which prohibited him from acting as a broker or intermediary in securities transactions. Despite that debarment, from January 2017 to August 2022, Mastroianni defrauded victim investors, many of whom were senior citizens, by falsely and fraudulently claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corp. Instead of investing the money as promised, Mastroianni used victim funds on personal expenses, including household rent, automobile payments, credit card bills, and cash withdrawals. Mastroianni defrauded 10 victims out of $1 million.

Mastroianni also exploited the ongoing global pandemic by submitting a false and fraudulent application to obtain $96,300 from a federal COVID-19 emergency relief loan meant for distressed small businesses. As with his investment fraud scheme, Mastroianni misused the loan proceeds to make personal purchases and cash withdrawals.

Victim-1 

8. MASTROIANNI originally contacted Victim-1, who is currently 82 years old, in or before 2015. Victim-1 invested in three or four stocks through Mastroianni at an investment company where MASTROIANNI previously worked. 

9. In approximately 2017, MASTROIANNI contacted Victim-1 about additional investments. MASTROIANNI claimed that he was raising millions of dollars to fund lending agreements with banks on short-term loans. MASTROIANNI claimed that he would pool money from multiple investors to make loans to banks, sometimes just overnight and sometimes for a few weeks at a time, and that the banks would pay significant interest on those short-term loans. In fact, no such pooled investment existed. 

10. MASTROIANNI sent Victim-1 a promissory note in furtherance of the scheme, dated September 18, 2017. The note documented a $12,500 transaction between Victim-1 and Global. Mastroianni, on behalf of Global, signed the document representing that Global would repay the $12,500 with interest at a rate of 50% per year.representing that Global would repay the approximately $10,000 with interest at a rate of 100% per year. In the same email, MASTROIANNI attached a pre-made FedEx label from Victim-2 to MASTROIANNI. 

11. On or about September 22, 2017, in reliance on the promissory note and MASTROIANNI's false and fraudulent representations, Victim-1 wired approximately $12,500 to Global's bank account at Bank-1, which MASTROIANNI controlled. MASTROIANNI was the only authorized signatory on the Global bank account at Bank-1. 

12. MASTROIANNI sent Victim-1 another promissory note in furtherance of the scheme, dated July 26, 2019. The note documented a $5,000 transaction between Victim-1 and Global. MASTROIANNI, on behalf of Global, signed the document representing that Global would repay the $5,000 with interest at a rate of 80% per year. 

13. On or about July 29, 2019, in reliance on the promissory note and MASTROIANNI's false and fraudulent representations, Victim-1 wired approximately $5,000 to Global's bank account at Bank-2. MASTROIANNI was the only authorized signatory on the Global bank account at Bank-2. 

14. MASTROIANNI sent Victim-1 additional promissory notes for more money purportedly to be invested the same way. In reliance on those promissory notes and MASTROIANNI's f'.alse and fraudulent representations, Victim-1 wired MASTROIANNI a total of at least $88,500, all of which Victim-1 believed to be directed into the same pooled investment structure. 

15. Instead of investing Victim-l's funds as he represented, MASTROIANNI used the funds, along with other money in Global's accounts, on personal expenses and cash withdrawals. 

Victim-2 

16. Victim-2, who is currently 67 years old, met MASTROIANNI through a broker ("Broker-1") who previously worked with MASTROIANNI. 

17. Victim-2 invested in securities and other private equity investments through Broker-1, and believed that MASTROIANNI was Broker-l's partner. 

18. In approximately July 2019, MASTROIANNI called Victim-2 directly, offering him a new investment opportunity in "factoring," or buying accounts receivable from small businesses like doctor's offices as part of a larger pool of investors, which would result in a high rate of return. In fact, no such pooled investment existed. 

19. On or about September 10, 2019, MASTROIANNI emailed Victim-2 attaching a promissory note in furtherance of the scheme that was nearly identical to the promissory notes MASTROIANNI sent to Victim-1. The note, dated on or about September 10, 2019, documented an approximately $10,000 transaction between Victim-2 and Global. Mastroianni, on behalf of Global, signed the document 

20. On or about September 10, 2019, in reliance on the promissory note and MASTROIANNI's false and fraudulent representations, Victim-2 mailed via FedEx a check for $10,000 from Michigan to MASTROIANNI in New Jersey. 

21. On or about September 11, 2019, MASTROIANNI deposited or caused to be deposited Victim-2's check into Global's bank account at Bank-2.

22. MASTROIANNI sent Victim-2 another promissory note in furtherance of the scheme, dated January 8, 2021. The note documented a $40,000 transaction between Victim-2 and Global. Mastroianni, on behalf of Global, signed the document representing that Global would repay the $40,000 with interest at a rate of 175% per six months. 

23. On or about January 8, 2021, in reliance on the promissory note and MASTROIANNI's false and fraudulent representations, Victim-2 mailed via FedEx a check for $40,000 from Michigan to MASTROIANNI in New Jersey. 

24. On or about January 11, 2021, MASTROIANNI deposited or caused to be deposited Victim-2's check into Global's bank account at Bank-3. MASTROIANNI was the only authorized signatory on the Global bank account at Bank-3. 

25. MASTROIANNI sent Victim-2 additional promissory notes for more money purportedly to be invested the same way. In reliance on those promissory notes and MASTROIANNI's false and fraudulent representations, Victim-2 sent to MASTROIANNI approximately $160,300, all of which Victim-2 believed to be directed into the same pooled investment structure. 

26. Instead of investing Victim-2's funds as he represented, MASTROIANNI used the funds, along with other money in Global's accounts, on personal expenses and cash withdrawals. 

27. In or around mid-2021, Victim-2 began asking MASTROIANNI to cash out some of his investment, which MASTROIANNI promised he would do. Mastroianni made several excuses, but never provided Victim-2 with any funds. 

28. In or around June 2022 and July 2022, during the course of lawfully recorded phone calls with Victim-2, MASTROIANNI made false and fraudulent representations that Victim-2 would be receiving a $50,000 check representing proceeds of his investments. Victim-2 still has not received any check or money transfer from MASTROIANNI or Global.

[M]astroianni, a New Jersey resident, sold at least 11 investors promissory notes issued by his company, Global, beginning as early as 2017. The complaint alleges that Mastroianni induced investors, ranging in age from 64 to 82, to purchase the notes by promising exorbitant interest rates ranging from 50% to 175%. In 2016, Mastroianni  was barred by the Financial Industry Regulatory Authority (FINRA) from associating with any registered broker-dealer after refusing to appear for testimony to answer allegations of, among other things, excessive trading in an elderly customer's account.

The SEC's complaint further alleges that Mastroianni gave investors conflicting explanations of the nature of Global's business, and often convinced them to roll-over their notes into new notes combining unpaid amounts with new investments by the investors. In reality, Global did not use investor monies to generate income and the SEC investigation determined that Mastroianni withdrew over $486,000 of investors' money from Global's bank account and also used ill-gotten funds for personal expenses on luxury items.

Anthony Mastroianni Jr. 

President at Global Business Development and Consulting Corporation

Anthony Mastroianni Jr. is a decorated U.S. Navy veteran. With 13 years experience as a Wall Street broker, Anthony founded Global Business Development and Consulting to offer his expertise in business consulting to entrepreneurs domestically and internationally. 

Global Business Development and Consulting provides business-tailored support in private equity and financial counseling.

President

Global Business Development and Consulting

Jan 2017 - Present · 5 yrs 8 mos

New Jersey, United States

Senior Vice President of Investments

Meyers Associates L.P.
Feb 2004 - Dec 2016 · 12 yrs 11 mos

New York City Metropolitan Area

Yeoman Third Class

US Navy

Oct 1995 - Oct 1999 · 4 yrs 1 mo

- Worked directly with Chief of Naval Operations to execute orders for commands internationally

- Worked with the Communications Department of the Secret Service for the Clinton Administration 

- Received two Navy Achievement Medals from former President Bill Clinton

11/2013 - 08/2016: Meyers Associates, L.P.

05/2012 - 11/2014: Alexander Capital, L.P

04/2009 - 05/2012 J.P. Turner & Company, L.L.C.

05/2008 - 05/2009: National Securities Corporation

02/2004 - 05/2008 Joseph Stevens & Company, Inc.

• Mastroianni
• Wire Fraud
• Mail Fraud
• DOJ
• FINRA
• Due Diligence
• Global Business Development & Consuting
• BrokeAndBroker
• Bill Singer