March, 2025 | Based in New York, NY
If you’ve invested with Francis Xavier Schiavetti and believe you may have been misled, don’t delay in seeking professional guidance. call 800-950-6553 or complete our online form today for a complimentary, no-obligation case evaluation with our experienced securities attorneys.
Crucial Information About Francis Xavier Schiavetti
- Full Name: Francis Xavier Schiavetti
- CRD Number: 862923
- Current Location: New York, NY
- Current Employer: A.G.P. / ALLIANCE GLOBAL PARTNERS
- Office Address: 40 Wall Street, New York, NY 10005
- Registration Status: Currently registered with 2 SROs and 8 U.S. states/territories
- State Licenses: California, Connecticut, Florida, New Jersey, New York, North Carolina, Pennsylvania, Virginia
- Experience: In the industry since 1979
- FINRA BrokerCheck: 8 Customer Disputes, 1 Financial Disclosure (Bankruptcy)
- Previous Employers: STOEVER, GLASS & COMPANY INC., STOEVER GLASS WEALTH MANAGEMENT, INC., AEGIS CAPITAL CORP., CITIGROUP GLOBAL MARKETS INC., MORGAN STANLEY, WELLS FARGO ADVISORS, LLC, UBS FINANCIAL SERVICES INC.
- Ability to Recover Losses: Potential for FINRA arbitration within eligibility timeframe
Examining Francis Xavier Schiavetti’s Professional History
Francis Xavier Schiavetti, a financial advisor currently operating out of New York City with A.G.P. / Alliance Global Partners, has a concerning regulatory history that should raise red flags for investors. Our law firm’s investigation into Schiavetti’s FINRA BrokerCheck report reveals a pattern of customer complaints and regulatory issues that demand scrutiny.
Schiavetti entered the securities industry in 1979 with Merrill Lynch, spending nearly two decades there before moving through a series of prominent financial firms including Prudential Securities, Wachovia Securities, UBS Financial Services, Wells Fargo Advisors, Morgan Stanley, Citigroup, Aegis Capital, and most recently, Stoever Glass & Company before joining his current firm in December 2023.
While Schiavetti possesses extensive experience and the necessary licenses to work as a securities professional, his record shows multiple customer complaints alleging serious misconduct, along with a personal bankruptcy filing that raises additional concerns about his financial judgment.
A Pattern of Customer Disputes Raising Serious Concerns
Schiavetti’s BrokerCheck report reveals a troubling history of customer complaints, with eight disclosed disputes and two currently pending arbitration cases seeking damages in the millions. These allegations consistently point to potential patterns of misconduct:
Currently Pending Arbitration Claims
As of early 2025, Schiavetti faces two pending FINRA arbitration proceedings (cases #24-02697 and #24-02260) filed in late 2024, with claimants alleging:
- Breach of fiduciary duty, negligence, and fraud related to accounts maintained between 2018-2023, with claimed damages estimated between $1-5 million.
- Misrepresentation and excessive trading related to activities at both Stoever Glass & Company (2018-2023) and Aegis Capital Corp. (2016-2018). According to the claim, after a client passed away, the client’s estate alleged trades had been unsuitable and excessive, constituting fraud and negligence.
These serious allegations suggest Schiavetti may have engaged in a pattern of misconduct affecting multiple clients over several years.
Historical Customer Disputes
Schiavetti’s record includes additional customer disputes that were either settled, denied, or withdrawn:
- 2009 Settlement: A claim alleging misrepresentation, unsuitability, failure to disclose material facts, and excessive commissions related to Unit Investment Trusts. This matter was settled for $5,000, with Schiavetti personally contributing $3,401.58 to the settlement.
- Multiple Claims Related to Government-Backed Securities: Several complaints between 2007-2014 alleged misrepresentation regarding investments in government-backed securities and Unit Investment Trusts, with customers claiming Schiavetti mischaracterized the risk, safety, and nature of these investments.
- Consistent Allegations of Misrepresentation: A recurring theme across complaints is that Schiavetti allegedly told clients their principal was guaranteed or that risky investments were comparable to safer vehicles like money market funds.
This pattern of similar allegations across multiple clients at different firms over many years raises serious concerns about potential systematic misconduct.
Financial Issues: Personal Bankruptcy
Further complicating Schiavetti’s professional profile is a personal Chapter 7 bankruptcy filing from September 2015 (Case #15-25895-PGH), which was discharged in June 2016. While financial difficulties can happen to anyone, a bankruptcy filing by a financial professional who advises others on wealth management presents obvious concerns about their own financial judgment and stability.
Red Flags For Investors: What to Watch For
If you are or have been a client of Francis Xavier Schiavetti, be alert to these potential warning signs of investment misconduct:
1. Misrepresentation of Investment Risk
Multiple complaints against Schiavetti allege he mischaracterized risky investments as safe or guaranteed. Warning signs include:
- Being told an investment has “no risk” or “guaranteed principal”
- Assurances that bond-like investments will always return your principal
- Comparisons of structured products or UITs to money market funds or simple savings vehicles
- Minimal discussion of potential downside risks or loss scenarios
2. Unsuitable Investment Recommendations
Financial advisors have a duty to recommend investments that align with your risk tolerance, financial situation, and investment objectives. Potential indicators of unsuitable recommendations include:
- Investments that seem inconsistent with your stated investment goals
- Complex products that you don’t fully understand
- Significant portfolio concentration in a single security type
- Recommendations that ignore your age, retirement horizon, or liquidity needs
3. Excessive Trading (Churning)
The pending arbitration claims suggest potential excessive trading, which occurs when a broker makes transactions primarily to generate commissions rather than to benefit clients:
- Frequent trading activity with little explanation
- High turnover in your account
- Substantial commission costs relative to account value
- Repeated buying and selling of the same or similar securities
4. Unauthorized Trading
Watch for transactions in your account that you:
- Did not approve beforehand
- Don’t recognize when reviewing statements
- Are informed about only after they’ve occurred
Understanding the Regulatory Framework
Financial advisors like Schiavetti are subject to numerous regulations designed to protect investors:
FINRA Rule 2111: Suitability
This rule requires brokers to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer based on their investment profile, including age, financial situation, tax status, investment objectives, and risk tolerance.
FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices
This rule prohibits the use of manipulative, deceptive, or fraudulent devices or contrivances in connection with the purchase or sale of securities.
FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
This fundamental rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
FINRA Rule 4511: Books and Records Requirements
This rule requires accurate record-keeping of all business activities, including trading authorizations and communications with customers.
Fiduciary Duty
In many circumstances, especially when operating under an investment advisory model, financial professionals owe a fiduciary duty to their clients, requiring them to act in the client’s best interest and to disclose all material facts and conflicts of interest.
Steps for Affected Investors
If you believe you may have been affected by improper investment practices while working with Francis Xavier Schiavetti, consider taking these important steps:
1. Review Your Account Statements and Trade Confirmations
- Look for unauthorized transactions or unexplained fees
- Compare your actual returns to what was promised or projected
- Note any significant losses, especially in allegedly “safe” investments
- Analyze patterns of trading and commission costs
2. Gather Documentation
- Collect all account statements, trade confirmations, and correspondence
- Save emails, texts, or notes from conversations with your broker
- Locate any marketing materials or presentation documents you received
- Preserve account opening documents showing your stated investment objectives
3. Consult with a Securities Attorney
- Seek a specialized attorney with experience in FINRA arbitration
- Discuss potential legal claims and recovery options
- Understand the relevant statutes of limitations
- Evaluate the strength of your case with a professional
4. File a Complaint if Appropriate
- Report concerns to FINRA’s Office of the Whistleblower
- Contact the broker’s employing firm’s compliance department
- Consider reaching out to your state securities regulator
- Determine if FINRA arbitration is appropriate for your situation
5. Act Promptly
- Be aware that FINRA arbitration claims generally must be filed within six years
- Some state laws may provide additional recourse but with shorter timeframes
- Delays can impact your ability to recover losses
- Evidence may become more difficult to obtain as time passes
How Our Investment Fraud Attorneys Can Help
Our securities litigation firm specializes in representing investors who have suffered losses due to broker misconduct. We offer:
- Free Case Evaluation: Our experienced securities attorneys will review your situation without cost or obligation to determine if you have a viable claim.
- Contingency Fee Representation: We work on a “no recovery, no fee” basis, meaning you pay legal fees only if we recover money for you.
- Forensic Account Analysis: Our team includes financial experts who can analyze your statements to identify patterns of misconduct, excessive trading, unsuitable investments, or misrepresentation.
- FINRA Arbitration Expertise: We have extensive experience navigating the FINRA arbitration process, which is typically required to resolve disputes with brokers and brokerage firms.
- Comprehensive Representation: From initial investigation through resolution, our attorneys handle all aspects of your case, protecting your interests at every stage.
The pattern of complaints against Francis Xavier Schiavetti reflects concerning allegations that span multiple years and firms. If you’ve experienced unexpected losses or suspicious account activity while working with Schiavetti, it’s important to understand your rights and potential for recovery.
Don’t hesitate to protect your financial well-being. Contact our securities fraud attorneys today for a confidential, no-cost evaluation of your potential claims. call 800-950-6553 now or complete our convenient online form to schedule your consultation and learn about your options for recovering investment losses.
