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Investigating Misconduct Allegations Against Financial Advisor Saralyn Scaldini
Saralyn Scaldini (CRD# 4944126), currently employed by Fidelity Brokerage Services LLC and Fidelity Personal and Workplace Advisors in Boca Raton, Florida, has been the subject of a customer dispute alleging misrepresentations, unsuitable investment recommendations, and failure to follow instructions. If you’ve invested with Ms. Scaldini and experienced unexpected losses, our investment fraud attorneys are investigating and can help you understand your options for recovery.
Who is Saralyn Scaldini?
Saralyn Scaldini is a financial advisor with over 18 years of experience in the securities industry. According to her FINRA BrokerCheck report, she is currently registered with:
- Fidelity Brokerage Services LLC (since October 2012)
- Fidelity Personal and Workplace Advisors (since July 2018)
She holds several professional licenses, including:
- General Securities Representative (Series 7)
- Futures Managed Funds Examination (Series 31)
- Securities Industry Essentials Examination (SIE)
- Uniform Combined State Law Examination (Series 66)
Additionally, she holds the Certified Financial Planner (CFP) designation, which may have been used to qualify her as an Investment Advisor representative.
Red Flags in Scaldini’s Regulatory History
While Scaldini has fewer disclosures than many brokers with similar experience, her FINRA BrokerCheck report reveals a significant customer complaint that investors should be aware of:
Settled Customer Dispute with $90,000 Payment
In December 2008, while Scaldini was employed at Merrill Lynch, Pierce, Fenner & Smith Inc., a client filed a complaint alleging that she:
- Made misrepresentations
- Recommended unsuitable investments
- Failed to follow instructions
The complaint involved multiple investment types:
- Municipal debt securities
- Equity stocks (common and preferred)
- Annuities
This dispute was settled in July 2009 for $90,000. While Merrill Lynch stated they settled “to avoid the cost and uncertainty of litigation” and found the claims “to be without merit,” the significant settlement amount suggests the firm saw enough risk to warrant a substantial payment rather than litigating the case.
It’s worth noting that Scaldini herself did not contribute to the settlement amount, which is sometimes an indicator of the firm taking responsibility for supervision issues rather than placing blame on the individual advisor.
Understanding the Allegations Against Scaldini
1. Misrepresentations
Misrepresentation occurs when an advisor provides false or misleading information about investments. This can include:
- Downplaying investment risks
- Overstating potential returns
- Failing to disclose material facts about investments
- Making guarantees about performance outcomes
- Mischaracterizing the nature of investment products
When advisors misrepresent investment features or risks, clients make decisions based on incomplete or inaccurate information, potentially leading to unexpected losses.
2. Unsuitable Investment Recommendations
Financial advisors have a duty to recommend only investments that align with their clients’:
- Financial situation and needs
- Investment objectives
- Risk tolerance
- Age and investment timeline
- Tax status
- Overall investment portfolio
Unsuitable recommendations occur when advisors suggest investments that don’t match these factors. Common examples include:
- Recommending high-risk investments to conservative investors
- Concentrating a portfolio in illiquid products for clients who need access to their money
- Suggesting complex products that the client doesn’t understand
- Recommending investments with high commissions that benefit the advisor more than the client
3. Failure to Follow Instructions
Advisors are obligated to follow their clients’ explicit instructions regarding account management. This allegation suggests that Scaldini may have:
- Executed unauthorized trades
- Failed to implement requested portfolio changes
- Ignored specific client directives
- Made decisions contrary to the client’s expressed wishes
- Delayed or neglected to carry out requested transactions
Products Involved in the Complaint
Municipal Debt Securities
Municipal bonds are issued by state and local governments to fund public projects. While generally considered relatively safe, they can pose risks including:
- Interest rate risk (when rates rise, bond values fall)
- Credit/default risk if the issuing municipality faces financial challenges
- Call risk if the bond is redeemed before maturity
- Tax implications that may not be fully explained
- Liquidity concerns in certain market conditions
Equity Securities (Common & Preferred Stock)
Stocks represent ownership in corporations and can vary dramatically in risk profile. Potential issues include:
- Volatility risk, especially with growth-oriented stocks
- Sector concentration risk if a portfolio is heavily weighted toward certain industries
- Dividend risk with preferred stocks if the company faces financial difficulties
- Suitability concerns if speculative stocks are recommended to conservative investors
- Misrepresentations about company prospects or stability
Annuities
Annuities are complex insurance products that provide income streams. They often involve:
- High commission structures that may incentivize inappropriate recommendations
- Lengthy surrender periods with significant penalties for early withdrawal
- Complex fee structures that may not be fully disclosed
- Tax implications that could be misrepresented
- Complicated features that clients may not fully understand
Current Employment and Registration Information
Saralyn Scaldini is currently employed by Fidelity companies and works from their Boca Raton, Florida office. She is registered as a broker in 33 U.S. states and territories, including:
- Florida
- California
- New York
- Texas
- Massachusetts
- New Jersey
As an investment adviser representative, she has more limited registration, currently only in Florida and Texas (with restricted approval).
Previous Employment History
Before joining Fidelity in 2012, Scaldini worked with several major financial institutions:
- Strategic Advisers LLC (2012-2018)
- Morgan Stanley Smith Barney (2009-2012)
- Morgan Stanley & Co. Incorporated (2009)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (2005-2009)
It’s worth noting that the customer complaint occurred during her tenure at Merrill Lynch.
Legal Options for Investors Who Have Suffered Losses
If you invested with Saralyn Scaldini and experienced unexpected losses, particularly related to municipal bonds, stocks, or annuities, you may have legal options for recovery. These typically include:
1. FINRA Arbitration
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum specifically designed to resolve disputes between investors and their financial advisors or brokerage firms. This process offers several advantages:
- Generally faster and less expensive than court litigation
- More straightforward discovery process
- Private proceedings rather than public courtroom
- Binding decisions
- Panels with industry knowledge
- Typically completed within 12-18 months
FINRA arbitration is the most common method for resolving investment disputes, with most customer agreements requiring this approach rather than traditional litigation.
2. Direct Negotiation
In some cases, brokerage firms may be willing to negotiate a settlement directly, particularly if:
- The evidence of misconduct is clear
- The firm values its relationship with the investor
- The potential for regulatory scrutiny exists
- Similar complaints have been filed against the same advisor
Our attorneys can help determine whether direct negotiation is appropriate and represent your interests in such discussions.
3. Regulatory Complaints
While not directly resulting in financial recovery, filing complaints with regulators like FINRA, the SEC, or state securities authorities can:
- Create an official record of potential misconduct
- Potentially support your arbitration claim
- Help protect other investors from similar experiences
- Sometimes lead to regulatory actions that may include restitution
Potential Claims in Investment Loss Cases
Our investment fraud attorneys evaluate several potential legal claims when assessing cases involving financial advisors like Saralyn Scaldini:
Breach of Fiduciary Duty
Investment advisers typically owe clients a fiduciary duty to act in their best interests. This includes:
- Placing client interests ahead of their own
- Providing full disclosure of material facts and conflicts
- Avoiding self-dealing or undisclosed compensation arrangements
- Providing suitable investment advice
- Acting with utmost good faith and loyalty
Negligence
Financial advisors must exercise reasonable care when providing investment advice. Negligence claims involve:
- Failure to conduct adequate due diligence on recommended investments
- Lack of reasonable basis for recommendations
- Inadequate monitoring of investments when required
- Careless handling of account assets
- Failure to follow industry standards and practices
Misrepresentation and Omission
Advisors may be liable for making false statements or failing to disclose material facts, including:
- Mischaracterizing the nature or risk level of investments
- Failing to disclose conflicts of interest
- Providing misleading performance projections
- Withholding information about fees, commissions, or surrender charges
- Making guarantees about investment outcomes
Violation of FINRA Rules
FINRA maintains specific rules governing broker conduct, including:
- Rule 2111 (Suitability): Requiring recommendations to be consistent with client needs
- Rule 2210 (Communications with the Public): Prohibiting misleading statements
- Rule 3270 (Outside Business Activities): Requiring disclosure of external business ventures
- Rule 2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices)
Violations of these rules can support claims of misconduct in arbitration proceedings.
Time Limitations for Investment Loss Claims
If you believe you’ve been harmed by investment misconduct, it’s crucial to act promptly. Important time limitations include:
- FINRA Arbitration Eligibility: Claims must generally be filed within six years of the event giving rise to the dispute
- State Securities Law Claims: Typically subject to 2-5 year statutes of limitations, depending on the state
- Common Law Claims: May have different limitation periods based on state law
Delaying action could permanently forfeit your right to recovery. Our attorneys can help determine the applicable deadlines in your specific situation.
Warning Signs of Investment Misconduct
To protect yourself from investment misconduct, be alert to these common red flags:
1. Pressure to Act Quickly
- “Limited time” offers designed to prevent due diligence
- Rush to sign documents without adequate review
- Discouragement from seeking second opinions
2. Guaranteed Returns
- Promises of “no-risk” investments
- Guarantees of specific performance outcomes
- Downplaying of potential downsides
3. Lack of Transparency
- Reluctance to provide prospectuses or offering documents
- Vague explanations about how investments generate returns
- Resistance to questions about fees, risks, or liquidity
4. Account Statement Discrepancies
- Investments you don’t recognize
- Unauthorized transactions
- Performance that doesn’t align with what was promised
5. Communication Issues
- Unreturned phone calls or emails
- Defensive responses to reasonable questions
- Avoidance of direct answers about account performance or status
How Our Investment Fraud Attorneys Can Help
Our experienced securities attorneys have recovered millions for investors who have suffered losses due to broker misconduct. When you work with us:
We Provide a Free Case Evaluation
- Comprehensive review of your investment situation
- Analysis of potential legal claims
- Clear explanation of recovery options
- Transparent assessment of case strengths and challenges
We Handle All Aspects of Your Claim
- Detailed investigation of your investment history
- Expert analysis of account statements and transaction records
- Management of all procedural requirements
- Strategic negotiation with opposing counsel
- Presentation of your case in arbitration if necessary
We Work on a Contingency Fee Basis
- No recovery, no fee structure
- Alignment of our interests with maximizing your recovery
- No upfront costs or hourly billing
- Clear fee agreement established at the outset of representation
Take Action to Protect Your Financial Future
If you’ve invested with Saralyn Scaldini and experienced unexpected losses, particularly involving municipal bonds, stocks, or annuities, it’s important to understand your legal options. Our investment fraud attorneys have extensive experience representing investors in claims against financial advisors and brokerage firms.
Don’t wait until it’s too late to seek recovery. Contact us today for a confidential, no-obligation consultation to discuss your specific situation and potential paths to recovery.
Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Past case results do not guarantee future outcomes. The information about Saralyn Scaldini comes from publicly available FINRA BrokerCheck records. The settlement mentioned does not necessarily indicate wrongdoing by Ms. Scaldini, as settlements are often reached to avoid the cost and uncertainty of litigation without admission of fault.
