Atlantic Highlands Financial Firm Hired Unlicensed Agent, State Says

ATLANTIC HIGHLANDS, NJ — The New Jersey Bureau of Securities says an Atlantic Highlands investment firm hired a financial advisor despite knowing he had been barred from the securities industry.

The company is Seaview Global Advisors LLC, based in Atlantic Highlands and owned by Steven Gluckstein.

According to the New Jersey Attorney General, Seaview Advisors employed Anthony Calascione from approximately 2017 through 2021, and allowed him to solicit clients and provide investment advice.

This is despite knowing that he was barred from the securities industry by the Financial Industry Regulatory Authority (FINRA) and could not be legally registered as an investment advisor.

The state says Calascione, who lives in Staten Island, violated federal securities law.

Calascione was registered as an agent of several broker-dealers from 1997 through 2004. In November 2016, FINRA barred him from associations with any FINRA member. Calascione is also the subject of two regulatory actions, three criminal disclosures and fourteen customer complaints, among other disclosures reported to the Central Registration Depository.

The state says Gluckstein and Seaview breached their fiduciary duty to investors by allowing Calascione to provide investment advice and recommend unsuitable trading to inexperienced clients.

One of those clients was a recently divorced local woman in her sixties who needed assistance with her investments that consisted of approximately $32,000 of her retirement money. In September 2018, this local woman became a client of Seaview, and Calascione recommended unsuitable stocks and options without adequately inquiring into her objectives and limited financial situation, according to the Attorney General.

The New Jersey Bureau of Securities says that Gluckstein, Seaview and Calascione failed to advise the woman of the risks associated with those strategies and investments. And, due to overconcentration and unsuitable trading, her individual account went from an opening balance of $24,484.91 to a balance of $0 in less than one year.

Further, the balance of a second investment account she owned decreased from an initial balance of $8,188.84 to $533.46 by May 2020.

Additionally, the New Jersey Bureau of Securities found that Gluckstein, Seaview and Calascione violated the Securities Law by engaging in conduct that included:

• Failing to establish required policies and procedures designed to protect investors;
• Failing to make and keep required books and records;
• Violating the privacy policy and appropriate standards of security and confidentiality; and
• Failing to safeguard the privacy of clients’ information.

The state of New Jersey now seeks to fine Seaview a total of $800,000 in civil penalties, as well as revoke its investment adviser registration with the state of New Jersey, meaning they can no longer practice in New Jersey. Calascione is also liable to pay civil penalties in the amount of $300,000.

“Investors have a right to expect the investment advisers they hire comply with the law and industry standards,” said Howard Pine, acting director of the New Jersey Division of Consumer Affairs. “New Jersey investors should have faith in the professionals managing their investments. I commend the Bureau for their action today, to ensure these individuals cease operating.”

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