Michael Pellegrino

Key Points

• Michael Pellegrino, a principal and co-founder of Goldstone Financial Group, was banned by the Securities and Exchange Commission (SEC) for marketing unregistered securities from 1 Global Capital, leading to significant investor losses.
• He faces a 2020 FINRA investigation for misleading retail communications and improper performance projections, alongside seven client disputes alleging misrepresentations and unsuitable investments.
• Pellegrino claims to be the creator of TheAuthorsWorld.com and serves as president of Artists Management Agency, with a background in entertainment as Vice President of Film and Television at Media Artists Group.
• Investor lawsuits against Goldstone Financial Group, naming Pellegrino and his brother Anthony, allege fraud and high-pressure sales tactics, with claims totaling over $1 million.
• His dual roles in finance and entertainment raise questions about conflicts of interest and the legitimacy of his ventures, particularly TheAuthorsWorld.com.

Overview

Michael Pellegrino is a Chicago-based financial advisor and entertainment professional with a multifaceted career. As a principal and co-founder of Goldstone Financial Group, a financial advisory firm, he has been involved in investment management, holding registrations in Illinois and Texas. Pellegrino has passed multiple securities exams, including Series 6, 62, 63, 65, and the Securities Industry Essentials Examination. In the entertainment industry, he claims to be the president of Artists Management Agency and the creator of TheAuthorsWorld.com, a platform aimed at connecting writers and readers globally. He previously served as Vice President of Film and Television at Media Artists Group, managing corporate relations and packaging film and TV concepts, and founded Relentless Entertainment, a production company. His career spans over nine years in finance and decades in entertainment, including roles at Max Net Entertainment, Playboy TV, and Sunset Island Records.

Allegations and Concerns

• SEC Ban for 1 Global Capital Securities (Pre-2024): Pellegrino was banned by the SEC for marketing unregistered securities from 1 Global Capital, which misled investors into risking retirement assets, resulting in significant losses.
• FINRA Investigation (2020): FINRA recommended disciplinary action against Pellegrino for misleading retail communications and improper projections of future investment performance, indicating potential violations of securities regulations.
• Client Disputes (2018–2019): Seven clients filed disputes alleging:
  • Misrepresentation of a non-traded REIT (July 2019, $125,000 sought; pending).
  • Unsuitable investment recommendations and fraud (June 2019, amount unspecified; pending).
  • Misrepresentations in a REIT presentation (April 2019, $50,000 sought; pending).
  • Unsuitable recommendations and failure to disclose material facts (January 2019, $161,089 sought; pending).
  • Sale of high-risk, fraudulent investments with misrepresentations (December 2018, $341,182 sought; pending).
  • Unsuitable non-traded REIT recommendation (November 2018, $200,000 sought; pending).
  • Unsuitable short-term notes recommendation (November 2018, amount unspecified; pending).
• Goldstone Financial Group Lawsuit: Pellegrino and his brother Anthony, key executives of Goldstone, are defendants in a U.S. District Court lawsuit accusing the firm of tricking investors into unregistered securities, causing substantial financial losses.
• High-Pressure Sales Tactics: Former clients and employees allege Goldstone, under Pellegrino’s leadership, used aggressive sales tactics to push complex financial products not in clients’ best interests, prioritizing commissions.
• Questionable Entertainment Ventures: Pellegrino’s claims about TheAuthorsWorld.com as a “game-changer” and his extensive entertainment roles (e.g., working with Michael Ovitz, securing a $6 million publishing deal) lack independent verification, raising concerns about exaggeration or misrepresentation.

Customer Feedback

Customer feedback is primarily drawn from legal disputes and allegations, as no direct consumer reviews are provided in the sources. Public sentiment is inferred from lawsuits and regulatory actions:

• Negative Feedback:
  • A client in a 2018 dispute alleged Pellegrino “sold high-risk and fraudulent investments” and “made misrepresentations and omitted material facts,” seeking $341,182 in damages. This reflects distrust and financial harm.
  • Another client (2019) claimed Pellegrino misrepresented a non-traded REIT, stating, “The presentation was misleading,” and sought $50,000, indicating dissatisfaction with transparency.
  • Former clients and employees criticized Goldstone’s “aggressive sales tactics” that “pushed complex financial products” not aligned with client interests, suggesting a pattern of prioritizing profits.
• Positive Feedback: No positive reviews or endorsements are documented in the sources. Pellegrino’s entertainment ventures, like TheAuthorsWorld.com, claim to offer a global platform for writers, but no user testimonials or independent reviews validate these claims.

Risk Considerations

• Reputational Risk: The SEC ban, FINRA investigation, and client lawsuits severely damage Pellegrino’s credibility in finance and entertainment. Negative media coverage and investor distrust amplify this risk.
• Legal Risk: Ongoing lawsuits, FINRA disciplinary actions, and potential further SEC penalties expose Pellegrino to prolonged legal battles and financial liabilities.
• Financial Risk: Client disputes seeking over $1 million, combined with potential restitution from the 1 Global Capital case, threaten Pellegrino’s personal and business finances. No bankruptcy is noted, but legal costs are likely significant.
• Professional Risk: The SEC ban limits Pellegrino’s ability to operate in the securities industry, while unverified entertainment claims may deter legitimate partners in that sector.
• Ethical Risk: Allegations of fraud, misrepresentations, and high-pressure sales suggest ethical lapses, potentially deterring clients and collaborators across industries.

Business Relations and Associations

• Goldstone Financial Group: Co-founded with his brother Anthony Pellegrino, who is also a defendant in the investor lawsuit. The firm is linked to controversial figures and entities involved in financial scandals.
• 1 Global Capital: Pellegrino marketed unregistered securities for this entity, leading to his SEC ban. The firm’s collapse caused widespread investor losses.
• Artists Management Agency: Pellegrino serves as president, claiming to manage high-profile clients like Jermaine Jackson, Cat Cora, and ICE-T.
• Media Artists Group: As former Vice President of Film and Television, Pellegrino managed corporate relations and content packaging.
• Relentless Entertainment: Founded by Pellegrino, this production company develops TV, film, and animation projects, including “FuzzBunz.”
• TheAuthorsWorld.com: Pellegrino claims to have created this platform with Sherry D’Agostino to connect writers and readers globally. Its legitimacy and impact are unverified.
• Entertainment Figures: Pellegrino claims associations with Michael Ovitz, Hugh Hefner, Ronnie McNeir, and others, though these are largely self-reported and lack corroboration.

Legal and Financial Concerns

• SEC Ban (Pre-2024): Pellegrino was banned for marketing unregistered 1 Global Capital securities, misleading investors and causing losses.
• FINRA Investigation (2020): FINRA’s preliminary decision to recommend disciplinary action cites misleading communications and improper projections. Outcome is pending.
• Investor Lawsuit (Ongoing): Pellegrino and Anthony are defendants in a U.S. District Court case alleging fraud and unregistered securities sales, with plaintiffs seeking compensation for losses.
• Client Disputes (2018–2019): Seven disputes claim damages totaling over $1 million for misrepresentations, fraud, and unsuitable investments. All are pending.
• No Bankruptcy or Debt Records: The sources do not mention bankruptcy or unpaid debts, but legal penalties and potential restitution pose financial risks.
• Cease-and-Desist Order: The SEC issued a cease-and-desist order against Goldstone and the Pellegrinos for their role in 1 Global Capital’s securities offerings.

Risk Assessment Table

Expert Opinion

Michael Pellegrino’s career is a study in ambition marred by ethical and legal failures. His SEC ban for marketing unregistered securities and FINRA investigation for misleading communications reveal a pattern of prioritizing personal gain over client welfare at Goldstone Financial Group. The seven client disputes, alleging over $1 million in damages, reinforce accusations of fraud and unsuitability, painting Pellegrino as an untrustworthy advisor. His entertainment ventures, while impressive on paper, rely heavily on self-reported claims—such as a $6 million publishing deal or work with Michael Ovitz—that lack independent verification, suggesting possible embellishment. TheAuthorsWorld.com’s bold claims as a “game-changer” are untested, and its association with Pellegrino’s tainted financial reputation raises red flags. The establishment narrative, driven by regulatory actions and lawsuits, portrays Pellegrino as a reckless operator, though the lack of defense perspectives in the sources warrants caution against a one-sided view.

Pros:

• Diverse experience in finance and entertainment, with securities licenses and a network of high-profile (albeit unverified) entertainment contacts.
• Entrepreneurial drive, evidenced by founding Goldstone, Relentless Entertainment, and TheAuthorsWorld.com, suggesting resilience despite setbacks.

Cons:

• SEC ban and FINRA investigation cripple his financial career, limiting future opportunities in securities.
• Ongoing lawsuits and $1 million in client claims pose significant financial and reputational threats.
• Unverified entertainment claims, coupled with fraud allegations, undermine credibility across industries.
• High-pressure sales tactics and ethical lapses suggest a disregard for fiduciary duty.

Cautionary Advice: Engaging with Michael Pellegrino or his ventures carries substantial risks due to his regulatory bans, pending lawsuits, and questionable ethical record. Investors should avoid Goldstone Financial Group until legal outcomes are clarified and verify any claims about TheAuthorsWorld.com or Artists Management Agency through independent sources. In the entertainment industry, scrutinize Pellegrino’s purported connections and achievements, as they may be exaggerated. Legal due diligence, including SEC and FINRA records, is essential to assess exposure to ongoing disputes. Monitor court developments and media for updates on his cases, as new penalties could further impact his ventures. Any financial or creative collaboration should be approached with extreme caution, prioritizing transparency and third-party validation.

Key Citations

• StopBrokerFraud.com: “Michael Pellegrino is Under Investigation By FINRA” (December 12, 2020).
• Intelligence Line: “SEC Charges on Michael Pellegrino?” (October 10, 2024).
• Intelligence Line: “Michael Pellegrino: A Fraudster” (January 4, 2025).
• Financescam.com: “Investment Fraud Unmasked: The Anthony Pellegrino and Goldstone Financial Story” (October 18, 2024).
• IMDb: “Michael A Pellegrino | Talent Agent, Producer” (Undated).