Litigation Update: SEC Charges Two In South Florida With Acting As Unregistered Brokers
On April 14th, 2022, the Securities and Exchange Commission (SEC) announced securities fraud charges against two Southeast Florida men who allegedly acted as unregistered brokers. Joseph Salvatore DeVito and Dean Anthony Esposito—both of Boca Raton, FL—stand accused of acting as unregistered brokers and soliciting investments in unregistered securities offerings. In this article, our Miami financial advisor fraud lawyers discuss the charges filed against the two unregistered brokers in South Florida.
SEC Charges: Unregistered Brokers Joseph Salvatore DeVito and Dean Anthony Esposito
In the United States District Court for the Southern District of Florida, the SEC filed securities fraud charges against Joseph Salvatore DeVito and Dean Anthony Esposito. Mr. DeVito and Mr. Esposito are both listed as residents of Palm Beach County, Florida. The complaint alleges that the Florida men acted as unregistered brokers, solicited investment for unregistered securities, and unlawfully
deceived investors both about the nature of financial products and about their personal history. The SEC states that the securities in question—an offering by a company called Property Income Investors LLC (PPI)—were pushed on and sold to investors through aggressive cold calling tactics.
Property Income Investors LLC (PII) Was Previously Cited in Securities Fraud Charges
In announcing the securities fraud charges against unregistered Florida brokers Joseph Salvatore DeVito and Dean Anthony Esposito, the SEC noted that a securities fraud case is already pending against the investment entity, Property Income Investors LLC (PII). In June of 2021, the SEC filed securities fraud charges against PII and several other companies. The case against PII was also brought in a federal court in South Florida.
According to the allegations in that securities fraud complaint, PII raised more than $9 million from at least 156 different investors. Many of the investors were Florida residents. PII marketed itself as being an investment entity that brought and managed multi-family properties in South Florida. However, the SEC contends that millions of dollars in investors funds were misused and misappropriated by the owners and operators of PII.
SEC is Seeking All Appropriate Sanctions and Remedies
In the charges filed in the federal court in South Florida, the Securities and Exchange Commission is seeking all appropriate sanctions and remedies. Among other things, the proposed penalties against Joseph Salvatore DeVito, Dean Anthony Esposito, and Property Income Investors LLC (PII) include:
- Permanent injunctions;
- Penny stock bans for both individuals;
- Officer and director bans for individuals;
- Disgorgement of ill-gotten gains;
- Payment of prejudgment interest; and
- Civil financial sanctions.
Schedule a Confidential Consultation With an Unregistered Broker Attorney
At Carlson & Associates, P.A., our Miami unregistered broker lawyer fights relentlessly to protect the best interests of investors. If you suffered major financial losses because of the poor practices of an unregistered broker, we are ready to help. Reach out to us by phone or connect with us directly online to set up your confidential case evaluation. With a law office in Miami, we handle unregistered broker claims throughout Southeastern Florida.
Resource:
sec.gov/litigation/litreleases/2022/lr25363.htm
