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Investigations

Craig Zabala Pending Civil Action on Allegations of Securities Fraud, Misrepresentation and Misappropriation of Funds

Craig Zabala civil action

Previously registered and currently barred broker Craig Zabala  is named defendant in a pending civil action initiated against him by the United States Securities and Exchange Commission (SEC) on the allegations of fraud, misrepresentation and misappropriation of funds among others, according to an investigation by investment lawyer, Alan Rosca. 

Investment lawyer Alan Rosca, of Goldman Scarlato & Penny PC law firm is investigating conduct related to the pending civil action instituted against Craig Anthony Zabala on the allegations of fraud, misrepresentation and misappropriation of funds among others. He has received Zabala investor inquiries and is evaluating potential recovery options. 

Craig Zabala was previously registered with John W. Loofbourrow Associates, Inc. He was registered with the New York based firm between February 7, 2015 and April 29, 2019. He was alleged to be in the employment of the Financial Industry Regulatory Authority (FINRA) member firm when he carried out the alleged acts leading to the pending civil action. 

Craig Zabala Is a Defendant in a Pending Civil Action Instituted by SEC

Publicly available information reviewed by the investment lawyer, Alan Rosca, revealed that the civil action was initiated on September 24, 2019 according to the information on his FINRA brokercheck page.  

In the Complaints filed by SEC before the District Court of the Southern District of New York, it was alleged that Craig Zabala made fraudulent offerings of securities, made material misrepresentations and misappropriated investor funds for the benefit of himself and his girlfriend. The investors whom he allegedly made material misrepresentations to are investors in Concorde Group Holdings Inc. 

According to the complaint, Craig Zabala raised at least $4.38 million from 17 investors throughout the country claiming he intended to develop Concorde Group Holdings (a financial services firm in which he held controlling interest)  into a merchant bank for mid-sized companies and to invest in affiliate companies. Craig Zabala allegedly raised this sum between the period of February 2015 and October 2020.

It was further alleged that Craig Zabala misrepresented to the investors that the holding was less than $1 million away from raising $25 million in total in a bid to attract more investments. It was alleged that the company had in fact not raised more than $5 million. Craig Zabala and his subordinates at the Holding company allegedly made these misrepresentations to various investors. In addition to this, it was also alleged that Craig Zabala misrepresented to the investors that the company was close to having an initial public offering (IPO) which was allegedly not true. 

The complaint further disclosed that Craig Zabala allegedly misappropriated approximately $3.17 million of the investors’ funds. He was alleged to have misappropriated $1.97 million for his personal use and the use of his girlfriend and that he misappropriated $1.2 million to make payments to investors of Concorde Group Inc., the parent company of Concorde Group Holdings. The payments were described as Ponzi-like payments as the business allegedly never made any meaningful progress in developing its original aim.

SEC is alleging that by virtue of the allegations above, Craig Zabala has violated several state and federal securities legislations and it is in turn seeking an order from the court permanently enjoining Zabala from violating the law, another order requiring him to pay disgorgements and other civil penalties.

Zabala Had Been Previously Barred by FINRA

In a regulatory action instituted against Craig Zabala by FINRA, he was barred indefinitely in all capacities on August 27, 2019. FINRA initiated the regulatory action on the allegation that Zabala refused to comply with FINRA’s request to provide documents and information in connection with FINRA’s review of Craig Zabala’s outside business activities and his potential participation in private securities transactions. The initial request for information was made on May 17, 2019. It was alleged that Craig Zabala only provided a partial but incomplete response to the request and through his counsel, he confirmed to FINRA that he will not be producing the remaining documents on June 14, 2019. FINRA alleged that these actions were in violation of FINRA Rule 8210 (a) (1) and Rule 2010.

In settling this action, Zabala consented to an Acceptance, Waiver & Consent (AWC) order. Without admitting or denying the findings, he consented to the sanction which led to his indefinite bar in all capacities starting from August 27, 2019.

Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

Investment Lawyers Investigating Potential Recovery Options on Behalf of Craig Zabala Investors

The team of investment lawyers of the Goldman Scarlato & Penny PC law firm expertly advises and represents investors who are victims of broker or investment-related fraud and other misconducts and is currently investigating conduct related Craig Zabala’s pending civil action on the allegations of securities fraud, misrepresentation and misappropriation of funds.  It is important to note that the firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients.

Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of conducts related to Craig Zabala’s pending civil action on the allegations of securities fraud, misrepresentation and misappropriation of funds, may contact attorney Alan Rosca for a free, no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent updates regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases. Also, the brokercheck report linked to some of our blogs is the up-to-date version as of the date of posting. Visitors may check the most recent version of each brokercheck report at www.finra.org.

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