Business ProfileforPriority Wealth Advisors Inc
Financial Services
Current Alerts For This Business
Government Action:
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
November 16, 2020 The following describes a settlement that has been formally brought by a government agency. The California Department of Business Oversight, alleges and charges as follows:
This Consent Order is entered into between the Commissioner of Financial Protection and
Innovation (Commissioner) and Respondents Priority Wealth Advisors, Inc. (PWA) and Joseph
Donti (Donti) (collectively, Respondents) and is made with respect to the following facts:
On or around August 9, 2017, Donti entered into an agreement with 1 Global Capital, LLC (1 Global) designating Donti as an "Affiliate" of 1 Global who would be compensated with a "Fee, Renewal Fee, or Override Fee" for "rendering sales and marketing services in connection with
the Company's capital raising and customer relationship activities . . . ."
In or around 2017 Donti offered securities issued by 1 Global called "Memorandum of Indebtedness" (MOI(s)) to at least 29 clients of PWA whose investments totaled approximately $2,594,669.65. The MOI promised a high-return, low-risk investment in which 1 Global would use investor money to make short-term cash advances called Merchant Cash Advances to businesses. The 1 Global MOIs offered by Donti to PWA's clients were securities that were neither qualified nor exempt from the qualification requirement under Section 25110 of the CSL.
On or around August 23, 2018, the United States Securities and Exchange Commission (SEC) filed a Complaint for Injunctive and Other Relief (SEC v. 1 Global Capital LLC et al. (Case No. 18-cv-61991-BB) (SEC Complaint). The SEC Complaint sought disgorgement and civil penalties from 1 Global and its Chief Executive officer, Carl Ruderman, and obtained a temporary asset freeze and a receiver against multiple relief defendants, for raising more than $287 million since 2014 from the sale of unregistered, fraudulent securities in the form of MOIs using a
network of barred brokers, registered and unregistered investment advisers, and other sales agents to investors in at least 25 states, including California.
On or around April 10, 2019, the Department commenced a regulatory examination of PWA's investment advisory business (Regulatory Exam). The Regulatory Exam disclosed, without limitation, the following:
a. PWA and Donti offered and sold securities in the form of MOIs in 1 Global that were neither qualified nor exempt, in violation of Corporations Code section 25110.
b. PWA and Donti recommended securities that were unsuitable for PWA's clients based on the client's investment objectives and levels of investment experience, in violation of Corporations Code section 25238 and CCR section 260.238, subdivision (a).
c. As of at least August 2019, PWA's website, www.prioritywealthadvisors.com, under "Services," included the following statements that guarantee a client "long-term growth" and "income throughout your retirement" as a result of PWA's advice, in violation of CCR section
260.238, subdivision (l): "Retirement Income Strategies- We can help you design a guaranteed* retirement income strategy that incorporates insurance and annuity vehicles to create opportunities for long-term growth as well as guaranteed* income throughout your
retirement . . . *Guarantees are backed by the financial strength and claims-paying ability
of the issuing company and may be subject to restrictions, limitations or early withdrawal fees. Annuities are not FDIC insured. Your investment advisor is not permitted to offer, and no statement contained herein shall constitute tax or legal advice. You should consult a tax or legal professional on any such matters."
d. From January 9, 2019, when the civil case, Leyton v. Donti et al. (Case No. 19BBCV00030) was filed in the Superior Court of the State of California for the County of Los Angeles, through at least December 4, 2019, Donti failed to file an updated Form U4 including a disclosure under Section 14I.(1) for being named as a respondent or defendant in an investmentrelated, consumer-initiated arbitration or civil litigation which alleged that he was involved in one or more sales practice violations and which was still pending, in violation of CCR section 260.236.1, subdivision (a).
On or around February 10, 2020, the Arizona Corporation Commission entered a Consent Order for a Cease and Desist, Order of Suspension, and Order for Administrative Penalties, In the Matter of Priority Wealth Advisors, Inc., a California corporation, Joseph Donti (Docket No. S-21092A-20-0009, Decision No. 77545) against PWA and Donti. Pursuant to Corporations Code section 25232, subdivision (d), the Commissioner is authorized to suspend or revoke an investment
adviser certificate if the investment adviser or its investment adviser representative is or has been subject to any order of the securities administrator of any other state denying or revoking or suspending his or her registration as an investment adviser or investment adviser representative. Pursuant to Corporations Code section 25232.1, the Commissioner is authorized to suspend or bar from any position of employment, management, or control of any investment adviser, any officer, director, partner, or employee of an investment adviser, if the person is subject to any order specified
in Section 25232, subdivision (d).
On or around June 1, 2020, while the Regulatory Exam was pending, PWA requested to surrender its investment adviser certificate by filing with the Commissioner a Notice of Withdrawal from Registration as an Investment Adviser (Form ADV-W).
On or around June 8, 2020, the Commissioner issued the Order Imposing Conditions on Surrender of Certificate as Investment Adviser (Order Imposing Conditions), which postponed the effectiveness of surrender until all the conditions contained therein, including, but not limited to, completion of the Regulatory Exam and investigation of PWA, were met.
In or around October 2020, the Department notified PWA and Donti of the findings made in the Regulatory Exam. As of the Effective Date of this Consent Order as defined in Paragraph 27 below, PWA and Donti satisfactorily responded to and resolved the findings of violations made in the Regulatory Exam, and all conditions stated in the Order Imposing Conditions have been met.
PWA and Donti neither admit nor deny the Commissioner's findings of facts and conclusions of law herein except as to the jurisdiction of the Commissioner in this matter for the purposes of enforcing this Consent Order.
To access the full Department of Business Oversight press release, please visit: https://dfpi.ca.gov/wp-content/uploads/sites/337/2020/11/Consent-Order-Priority-Wealth-Advisors-Inc..pdf
November 16, 2020 The following describes a settlement that has been formally brought by a government agency. The California Department of Business Oversight, alleges and charges as follows:
This Consent Order is entered into between the Commissioner of Financial Protection and
Innovation (Commissioner) and Respondents Priority Wealth Advisors, Inc. (PWA) and Joseph
Donti (Donti) (collectively, Respondents) and is made with respect to the following facts:
On or around August 9, 2017, Donti entered into an agreement with 1 Global Capital, LLC (1 Global) designating Donti as an "Affiliate" of 1 Global who would be compensated with a "Fee, Renewal Fee, or Override Fee" for "rendering sales and marketing services in connection with
the Company's capital raising and customer relationship activities . . . ."
In or around 2017 Donti offered securities issued by 1 Global called "Memorandum of Indebtedness" (MOI(s)) to at least 29 clients of PWA whose investments totaled approximately $2,594,669.65. The MOI promised a high-return, low-risk investment in which 1 Global would use investor money to make short-term cash advances called Merchant Cash Advances to businesses. The 1 Global MOIs offered by Donti to PWA's clients were securities that were neither qualified nor exempt from the qualification requirement under Section 25110 of the CSL.
On or around August 23, 2018, the United States Securities and Exchange Commission (SEC) filed a Complaint for Injunctive and Other Relief (SEC v. 1 Global Capital LLC et al. (Case No. 18-cv-61991-BB) (SEC Complaint). The SEC Complaint sought disgorgement and civil penalties from 1 Global and its Chief Executive officer, Carl Ruderman, and obtained a temporary asset freeze and a receiver against multiple relief defendants, for raising more than $287 million since 2014 from the sale of unregistered, fraudulent securities in the form of MOIs using a
network of barred brokers, registered and unregistered investment advisers, and other sales agents to investors in at least 25 states, including California.
On or around April 10, 2019, the Department commenced a regulatory examination of PWA's investment advisory business (Regulatory Exam). The Regulatory Exam disclosed, without limitation, the following:
a. PWA and Donti offered and sold securities in the form of MOIs in 1 Global that were neither qualified nor exempt, in violation of Corporations Code section 25110.
b. PWA and Donti recommended securities that were unsuitable for PWA's clients based on the client's investment objectives and levels of investment experience, in violation of Corporations Code section 25238 and CCR section 260.238, subdivision (a).
c. As of at least August 2019, PWA's website, www.prioritywealthadvisors.com, under "Services," included the following statements that guarantee a client "long-term growth" and "income throughout your retirement" as a result of PWA's advice, in violation of CCR section
260.238, subdivision (l): "Retirement Income Strategies- We can help you design a guaranteed* retirement income strategy that incorporates insurance and annuity vehicles to create opportunities for long-term growth as well as guaranteed* income throughout your
retirement . . . *Guarantees are backed by the financial strength and claims-paying ability
of the issuing company and may be subject to restrictions, limitations or early withdrawal fees. Annuities are not FDIC insured. Your investment advisor is not permitted to offer, and no statement contained herein shall constitute tax or legal advice. You should consult a tax or legal professional on any such matters."
d. From January 9, 2019, when the civil case, Leyton v. Donti et al. (Case No. 19BBCV00030) was filed in the Superior Court of the State of California for the County of Los Angeles, through at least December 4, 2019, Donti failed to file an updated Form U4 including a disclosure under Section 14I.(1) for being named as a respondent or defendant in an investmentrelated, consumer-initiated arbitration or civil litigation which alleged that he was involved in one or more sales practice violations and which was still pending, in violation of CCR section 260.236.1, subdivision (a).
On or around February 10, 2020, the Arizona Corporation Commission entered a Consent Order for a Cease and Desist, Order of Suspension, and Order for Administrative Penalties, In the Matter of Priority Wealth Advisors, Inc., a California corporation, Joseph Donti (Docket No. S-21092A-20-0009, Decision No. 77545) against PWA and Donti. Pursuant to Corporations Code section 25232, subdivision (d), the Commissioner is authorized to suspend or revoke an investment
adviser certificate if the investment adviser or its investment adviser representative is or has been subject to any order of the securities administrator of any other state denying or revoking or suspending his or her registration as an investment adviser or investment adviser representative. Pursuant to Corporations Code section 25232.1, the Commissioner is authorized to suspend or bar from any position of employment, management, or control of any investment adviser, any officer, director, partner, or employee of an investment adviser, if the person is subject to any order specified
in Section 25232, subdivision (d).
On or around June 1, 2020, while the Regulatory Exam was pending, PWA requested to surrender its investment adviser certificate by filing with the Commissioner a Notice of Withdrawal from Registration as an Investment Adviser (Form ADV-W).
On or around June 8, 2020, the Commissioner issued the Order Imposing Conditions on Surrender of Certificate as Investment Adviser (Order Imposing Conditions), which postponed the effectiveness of surrender until all the conditions contained therein, including, but not limited to, completion of the Regulatory Exam and investigation of PWA, were met.
In or around October 2020, the Department notified PWA and Donti of the findings made in the Regulatory Exam. As of the Effective Date of this Consent Order as defined in Paragraph 27 below, PWA and Donti satisfactorily responded to and resolved the findings of violations made in the Regulatory Exam, and all conditions stated in the Order Imposing Conditions have been met.
PWA and Donti neither admit nor deny the Commissioner's findings of facts and conclusions of law herein except as to the jurisdiction of the Commissioner in this matter for the purposes of enforcing this Consent Order.
To access the full Department of Business Oversight press release, please visit: https://dfpi.ca.gov/wp-content/uploads/sites/337/2020/11/Consent-Order-Priority-Wealth-Advisors-Inc..pdf
Government Action:
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
January 21, 2020 The following describes a Consent Order that has been formally brought by a government agency. Matthew J. Neubert and the Arizona Corporation Commission (Executive Dirtector), alleges and charges as follows:
The Arizona Corporation Commission ordered a 90-day suspension of the investment adviser representative license of Joseph Donti of Newbury Park, California, requiring him and his affiliated company, Priority Wealth Advisors, Inc., to pay a $5,000 administrative penalty. Additionally, Mr. Donti agreed to withdraw the investment adviser license of his company.
The Commission found Donti and Priority Wealth Advisors, Inc. failed to conduct reasonable due diligence for four of his clients with respect to investments in 1 Global Capital, LLC, which declared bankruptcy in July of 2018.
In settling this matter, the Mr. Donti and his company neither admitted nor denied the Commission's findings but agreed to the entry of the consent order. All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21092A-20-0009.
To access the full Arizona Corporation Commission press release, please visit: https://docket.images.azcc.gov/0000200675.pdf
January 21, 2020 The following describes a Consent Order that has been formally brought by a government agency. Matthew J. Neubert and the Arizona Corporation Commission (Executive Dirtector), alleges and charges as follows:
The Arizona Corporation Commission ordered a 90-day suspension of the investment adviser representative license of Joseph Donti of Newbury Park, California, requiring him and his affiliated company, Priority Wealth Advisors, Inc., to pay a $5,000 administrative penalty. Additionally, Mr. Donti agreed to withdraw the investment adviser license of his company.
The Commission found Donti and Priority Wealth Advisors, Inc. failed to conduct reasonable due diligence for four of his clients with respect to investments in 1 Global Capital, LLC, which declared bankruptcy in July of 2018.
In settling this matter, the Mr. Donti and his company neither admitted nor denied the Commission's findings but agreed to the entry of the consent order. All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21092A-20-0009.
To access the full Arizona Corporation Commission press release, please visit: https://docket.images.azcc.gov/0000200675.pdf
At-a-glance
Related Categories
Business Details
- Location of This Business
- 21550 Oxnard St #450, Woodland Hills, CA 91367-7133
- BBB File Opened:
- 4/28/2016
- Years in Business:
- 16
- Business Started:
- 3/10/2008
- Business Incorporated:
- 3/6/2015
- Licensing Information:
- This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.BBB records show a license number of 0G02448 for this business, issued by Department of Insurance. The expiration date of this license is 3/31/2022.
These agencies may include:
Department of Insurance
any street
Any City null null
- Type of Entity:
- Corporation
- Number of Employees:
- 10
- Contact Information
Principal
- Joseph Donti, President
Customer Complaints
0 Customer Complaints
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