FINRA Disciplines Anthony Cantone of Cantone Research for Concealing Material Facts in Private Placement

If you invested with Anthony Cantone at Cantone Research Inc. and were never told that the person backing your investment was missing payment after payment, or that a guaranty you were counting on was “worthless,” FINRA’s findings about this broker are worth knowing. BrokerCheck records show that Anthony Joseph Cantone (CRD# 1066139), formerly president and registered representative of Cantone Research Inc. (CRD# 26314) in Eatontown, New Jersey, is permanently barred from the securities industry. He is serving a one-year suspension from April 6, 2026 through April 6, 2027, and was fined $100,000 jointly and severally with his firm, following the FINRA National Adjudicatory Council’s finding that he acted at least recklessly by making material omissions in the sale of a private placement offering. The investors who bought into that offering put in more than $1.8 million. Cantone never told them what he knew.

On January 23, 2026, the FINRA National Adjudicatory Council (NAC) issued a decision in FINRA Case #2013035130101, affirming in part and modifying in part the sanctions it originally imposed in January 2019. The decision became final on February 23, 2026. The NAC, on remand from the Securities and Exchange Commission, found that Cantone and his firm made material omissions in connection with one private placement offering, in willful violation of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder, and in violation of FINRA Rules 2020 and 2010.

BrokerCheck records show 13 disclosures spanning more than two decades, including a permanent bar from March 2024 for municipal bond fraud that caused customers to lose more than $6,225,000.

FINRA’s findings: material omissions in a private placement

According to the NAC’s January 2026 decision, the sanctions are based on findings that the firm and Anthony Cantone failed to disclose the following material facts to investors with respect to a single private placement offering: first, the firm and Anthony Cantone had myriad concerns about the ability of a key participant in the offering to pay, because the participant had missed numerous interest and principal payments that the firm and Anthony Cantone covered; second, interest rate increases and fees for two other offerings’ extension agreements went undisclosed; third, the participant owed $350,000 in unpaid interest and fees for one of the offerings; and fourth, a Guaranty depended on the participant and was “worthless.”

According to the NAC’s January 2026 decision, Cantone’s material omissions affected at least the 53 investors in the Cherokee Offering, who invested more than $1.8 million in the offering.

According to the April 2026 FINRA disciplinary actions report, Cantone acted “at least recklessly” in making these omissions, in willful violation of Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder.

A second permanent bar: the municipal bond fraud

According to BrokerCheck, FINRA filed a complaint in October 2021 alleging that Cantone made numerous fraudulent and negligent misrepresentations and omissions of material fact in connection with two municipal bond offerings that defaulted, causing customers to lose more than $6,225,000. A Hearing Panel found in January 2024 that Cantone sold municipal bonds without a reasonable basis to believe them suitable for any investor, in willful violation of MSRB Rule G-19, and used fraudulent and negligent misrepresentations and omissions in violation of MSRB Rule G-17 and Securities Act Sections 17(a)(1), 17(a)(2), and 17(a)(3). The decision became final on March 11, 2024, permanently barring Cantone and ordering restitution of $1,266,170.50.

That is permanent bar number two.

The 2023 bar for refusing FINRA testimony

According to BrokerCheck, in December 2023, Cantone was permanently barred after consenting to an AWC in which he, without admitting or denying the findings, consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA. The investigation concerned his customers’ purchases of low-priced securities, as well as possible conflicts of interest between his outside business activities and his customers.

Three bars total.

New Jersey Bureau of Securities action and $1.8 million in restitution

The regulatory problems go back well before the FINRA enforcement. According to BrokerCheck, in November 2015, the New Jersey Bureau of Securities took action against Cantone for the offer and sale of unregistered securities, specifically Certificates of Participation, and for making untrue statements of material fact and material omissions. Cantone consented to the order, which called for $1,800,000 in restitution, and was suspended for 19 months.

Customer arbitration and dispute history

According to BrokerCheck, Cantone’s record includes multiple customer disputes resolved through arbitration and settlement. In 2004, an arbitration panel awarded a claimant $250,000 on a 2003 claim alleging unsuitability and breach of fiduciary duty. In 2002, another panel awarded $10,000 on a 2001 claim alleging poor performance. In 2013, a FINRA arbitration filed in 2010 settled for $800,000, resolving claims that a broker who had spent his final years at Cantone Research (after 18 years across six firms) converted customer funds while at Cantone. And in 2019, Cantone settled a claim for $42,500 stemming from a private placement investment that went into default in 2015, the same type of offering at the center of the FINRA enforcement action.

Why private placement omissions are so dangerous

Private placements aren’t listed on an exchange. They’re exempt from full SEC registration, which means they don’t go through the disclosure process that a public offering requires. Investors depend entirely on what the broker tells them: the offering documents, the sponsor’s track record, and whatever the broker knows about the deal’s health. When any of that information is incomplete, there’s no independent way to fill the gaps.

That’s what made the omissions here so damaging. According to the NAC’s decision, Cantone knew the key figure behind the offering was missing payments. He knew the guaranty was worthless. He was personally covering those missed payments. None of that made it into the conversations with investors. And by the time anyone realized the offering was in trouble, more than $1.8 million was already committed.

Private placements are also illiquid. Once you’re in, you’re in. You can’t sell out the way you can with a listed stock. That’s exactly why the duty to disclose everything material before the investment is made matters so much. The window to walk away closes fast.

We’ve handled cases where the broker’s undisclosed knowledge turned out to be the single most important fact in the dispute. If you were never told something the broker obviously knew, that’s the kind of omission FINRA takes seriously. Arbitration panels tend to as well.

Regulatory framework

The core violation in the April 2026 action is Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, which prohibit knowingly or recklessly making material misstatements or omissions in connection with the purchase or sale of securities. A broker who conceals known material facts from investors violates this provision. The willfulness finding matters: it means FINRA concluded Cantone knew what he was doing.

FINRA Rule 2020 prohibits registered persons from using any manipulative, deceptive, or other fraudulent device or contrivance. FINRA Rule 2010 requires members to observe high standards of commercial honor and just and equitable principles of trade. Both rules were found to have been willfully violated.

The municipal bond conduct involved additional rules: MSRB Rule G-17 (fair dealing), Rule G-19 (suitability), and Rule G-47 (time of trade disclosure), along with Sections 17(a)(1), (2), and (3) of the Securities Act of 1933, which prohibit fraud in the offer and sale of securities.

What investors should know about recovery options

If you invested through Cantone at Cantone Research in a private placement or a municipal bond offering, your claims may be worth evaluating even if you haven’t been part of any prior proceedings. Most brokerage account agreements include arbitration clauses requiring disputes to be resolved through FINRA arbitration rather than in court. FINRA arbitration is a private forum where a panel hears evidence and determines liability and damages.

Recoverable damages can include out-of-pocket loss (the difference between what you invested and what you recovered), commissions and fees paid, and a comparison against what a properly managed account would have returned. Time limits for bringing arbitration claims are governed by FINRA Rule 12206. The clock matters, so prompt action is worth taking seriously.

Steps to take right now

1. Gather your account statements, trade confirmations, and any correspondence with your broker or firm, including emails, texts, and written materials about the investments.
2. Look up your broker on FINRA BrokerCheck at brokercheck.finra.org to review their full disclosure record.
3. Contact a securities arbitration attorney for a consultation to evaluate your options.

Rosenberger + Kawabata represents retail investors in FINRA arbitration proceedings involving unsuitable private placement recommendations, misrepresentation, and failure to supervise. If you invested with Anthony Cantone at Cantone Research Inc. and believe your investments were unsuitable or your account was mismanaged, contact Rosenberger + Kawabata online for a free and confidential consultation, or call (310) 894-6921.

The information in this post comes from FINRA’s public BrokerCheck database. You can view the full detailed report (CRD# 1066139) here.

You can view the full April 2026 FINRA disciplinary actions report here.