Michael Pellegrino Scam Allegations Fact-checked (2024)
Michael is president of the Artists Management Agency and claims to have founded The Authors World.com.
Vice President of Film and Television was a title Michael Pellegrino held at Media Artists Group. Media Artists Group is a boutique talent agency that focuses on giving each artist personalized attention.
Corporate relations for the corporation are one of Michael’s responsibilities, with a particular emphasis on the packaging and sales of concepts for film and television products. Michael was the sole founder of Relentless Entertainment, a production firm that provides a broad range of services, before joining Media Artists Group.
A platform that has never been seen before has been built by Michael Pellegrino, who asserts that he is the founder of “The Authors World.” This platform is currently being distributed on a global scale. The Authors World asserts that they facilitate the connection between readers and authors by cultivating a global community.
One of the primary objectives of TheAuthorsWorld.com is to provide individuals with a worldwide platform through which they may express themselves. In addition to claiming that he is working in collaboration with Sherry D’Agostino, Michael asserts that he desires followers from all over the world to be a part of a community that allows them to communicate their thoughts and opinions with other readers.
Michael Pellegrino, who is known for his self-centeredness, asserts that he desires authors to have access to a global platform where they can share their work with audiences all over the world. There has been a significant shift in the operating procedures of traditional publishing houses.
As a conceited and ill-informed man, Michael Pellegrino flaunts his celebrity and claims to have been featured in several magazines and podcasts, such as Your Purpose and Business Podcast, Book Boys Podcast, Hustle and Soul Magazine, and Heart of Hollywood Magazine.
One of Hollywood’s most prominent and formidable talent agents, Michael Pellegrino, President of Artists Management Agency, is knowledgeable about literature. With credits that include working with The Four Tops, Ronnie McNeir, Larry Braggs, Ice-T, Coco, Jermaine Jackson, Marlon Jackson, Hulk Hogan, and many more, Michael Pellegrino asserts that he has dedicated most of his life to the entertainment business.
Legal action taken against Michael Pellegrino
The center of the Goldstone Financial Group lawsuit is centered on claims made by investors that they suffered significant financial losses after being tricked into investing their retirement assets in unregistered securities. Along with Anthony and Michael Pellegrino, the two main executives of Goldstone Financial Group, are defendants in this lawsuit.
Plaintiffs are seeking penalties for their alleged damages in this legal case, which is being heard in a U.S. District Court. Diverse legal processes have shaped the case’s growth, with important advancements determining its course. Examining the proof and defenses put out by each side is the responsibility of the presiding judge in this case.
A cease-and-desist order was issued against Goldstone and the Pellegrinos for participating in the offering and sale of securities on behalf of 1 Global Capital LLC by the Securities and Exchange Commission (SEC), which has been involved in the legal proceedings. Transactions worth $37 million were disclosed between May 2017 and June 2018 according to the SEC’s recorded findings.
For both financial experts and investors, this lawsuit highlights many important findings. The need for openness in financial advising interactions is the most important of these. To give customers the information they need to make educated decisions, advisors must accurately disclose any hazards, rewards, fees, and commissions. This legal battle threatens Goldstone Financial Group greatly, damaging its standing and capacity to provide advisory services.
The Accusations
The main arguments in the case against Goldstone Financial Group center on several claims that have put the business under close examination. The primary allegations include investing deceit, misrepresentation, negligence on the part of the professional, and breach of fiduciary duty. The plaintiffs contend that they suffered financial setbacks as a result of being tricked into investing a portion of their retirement assets in unregistered securities.
Goldstone Financial Group’s marketing and distribution of unregistered securities is at the heart of these claims. These were presented as non-traded business development companies (BDCs) and real estate investment trusts (REITs). Low liquidity, high costs, and significant risk exposure are frequently associated with these products. Because these assets are complex, they should ideally only be available to accredited investors who have the necessary risk tolerance and financial literacy.
A crucial aspect of the lawsuit against Goldstone Financial Group is the revelation of negligence. The plaintiffs argue that by advising clients to make these high-risk transactions, the business violated their duty of care. It is accused, namely, of not conducting adequate due diligence and of failing to consider whether these investments are appropriate given the particular financial circumstances and risk tolerance of the clients.
In addition, Goldstone Financial Group is accused of lying on several occasions in the case. The business is charged with pushing non-traded REITs and BDCs without fully informing customers of the costs or inherent hazards involved. Due to the lack of openness, investors were probably misinformed, which opened the door to monetary losses.
The charges also include fraudulent activity that Goldstone Financial Group is said to have committed. This mostly relates to alleged dishonest behavior concerning the marketing, distribution, and sale of the previously mentioned unregistered securities, which consists of claims of investment fraud and breach of fiduciary duty.
The Pellegrinos’s role
The sale of unregistered securities that were offered by 1 Global Capital LLC, a company that specializes in providing short-term commercial finance for small enterprises, was a matter of concern for Anthony and Michael Pellegrino, who were the co-founders of Goldstone Financial Group.
Because Michael Pellegrino was involved in the sale of securities from 1 Global Capital, the Securities and Exchange Commission (SEC) investigated his activities. Pellegrino was a principal and co-founder of Goldstone Financial Group. As a consequence of this inspection, the SEC ultimately decided to prevent him from doing business.
Anthony Pellegrino is the creator of the company, and as such, it is reasonable to expect him to follow ethical standards and ensure that it adheres to relevant regulations. However, there is no clear reference to him holding a Chief Compliance Officer post. To assist in the navigation of regulatory obligations, compliance consultants are typically hired by financial advice businesses.
Within the realm of finance, the case filed by Goldstone Financial Group highlights the significance of ethical conduct and the responsibilities of fiduciaries. Financial companies are required to put the interests of their customers first and adhere to strict ethical standards to survive in the complex regulatory environment.
The roles that the Pellegrinos played in the case against Goldstone Financial Group highlight the repercussions of engagement in the sale of unregistered securities and highlight the crucial requirement for ethical conduct and fiduciary duty in the practices of financial firms.
Revenue Sharing Agreement
In exchange for the right to use something, one party to a revenue-sharing agreement agrees to pay the other a certain percentage of earnings or revenues. Through this agreement, a business can make money off of a good or service that is integral to its main business.
An arrangement between a record company and a music producer, for instance, can provide that the producer will give the company a quarter of all proceeds from CD sales. To cover costs related to promoting and producing the artist, the record company in this case uses income sharing.
Conclusion
Based on the Securities and Exchange Commission’s (SEC) actions against Michael Pellegrino, revenue-sharing agreement violations are significant offenses that carry penalties and prohibitions. Businesses, stakeholders, and customers all gain from revenue sharing, a flexible and successful business strategy. To take full advantage of revenue sharing, companies need to understand different models, implement them in different industries, deal with legal and regulatory issues, and follow best practices.
Future developments in technology and business structures should bring new income-sharing opportunities as well as difficulties. Through knowledge and flexibility, companies may use revenue sharing to improve performance, encourage teamwork, and create long-term value for all parties involved.
It is highly recommended that tax services specialists be consulted due to the potential complexity of tax implications related to revenue-sharing agreements. In addition to providing advice on how to maximize revenue-sharing agreements, these experts can guarantee adherence to tax rules and regulations. To ensure a bright future for your company and its stakeholders, protect your firm’s financial health by speaking with a tax services professional right now.
