Voya Financial Advisors, a broker-dealer headquartered in Des Moines, Iowa, was censured and fined $2,750,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to supervise its variable annuity sales. Letter of Acceptance, Waiver and Consent, No. 2014039172901 (Nov. 2, 2016). According to the AWC, the firm’s supervisory failures pertained to…
Robert James Batchen, of Skokie, Illinois, a stockbroker formerly registered with Wells Fargo Advisors, LLC, was fined $15,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he effected unauthorized discretionary trades and unsuitable transactions in a customer account. Letter of…
Douglas A. Leone, of Dix Hills, New York, a stockbroker formerly registered with Newport Coast Securities, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per a FINRA Extended Hearing Panel Decision containing findings that Leone churned customer accounts and effected unsuitable trades. Department of Enforcement…
As a matter of firm policy, we have always recommended that our clients cooperate with securities regulators. Since 2009, the Central Review Group, Office of Fraud Detection and Market Intelligence of the Financial Industry Regulatory Authority or FINRA “performs preliminary investigations on certain matters and analyzes regulatory filings, investor complaints and other sources of regulatory…
The Massachusetts Secretary of the Commonwealth, William F. Galvin, issued an administrative complaint against Stephen S. Eubanks for operating a text book Ponzi scheme According to the Complaint, since approximately October 2011, Eubanks presented himself as a successful hedge fund manager of Eubiquity Capital. According to the Complaint, Eubanks, sold approximately $562,000 of his hedge…
Matthew Digregorio, of Melville, New York, a stockbroker formerly registered with Aegis Capital Corp., was subject to a customer initiated investment related arbitration claim on April 28, 2016, in which the customer was awarded $50,000.00 in damages based upon allegations against Digregorio of churning the customer’s account, effecting unsuitable transactions, and breaching his fiduciary duty. FINRA…
Janet Ross, of Irvine, California, the chief compliance officer and a registered principal of Accelerated Capital Group, was named in a pending customer initiated investment related arbitration claim on September 15, 2016, in which the customer requested $400,000.00 in damages based upon allegations that Ross failed to supervise the sales of promissory notes to the…
Neil D. Pecker, of Longwood, Florida, a stockbroker formerly registered with Coastal Equities, Inc., was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after FINRA found that Pecker did not cooperate with FINRA’s request to provide information or documentation. Docket No. 2016050013101 (Sept. 26, 2016). FINRA Public Disclosure reveals…
Debra Lambert, of The Villages, Florida, a stockbroker currently registered with Raymond James & Associates, Inc., has been named in a customer initiated investment related arbitration claim on February 13, 2015, in which the customer requested $326,515.64 in damages based upon allegations that Lambert effected excessive and unauthorized trades in the customer’s account, and made…
Joel E. Archer, of Arden Arcade, California, a stockbroker currently registered with Summit Brokerage Services, Inc., has been named in a pending customer initiated investment related arbitration claim on June 21, 2016, in which the customer requested $200,000.00 in damages based upon allegations against Archer of making unsuitable investment recommendations to the customer, and effecting…
Wilbanks Securities executives Randall Wilbanks and Aaron Wilbanks, of Oklahoma City, Oklahoma, have been named in a pending customer initiated investment related arbitration claim on November 24, 2014, in which the customers have collectively requested $1,465,000.00 in damages based upon allegations that Randall Wilbanks and Aaron Wilbanks, as control persons, were responsible for improper sales…
John J. Santariello, of Coram, New York, a stockbroker currently registered with Arive Capital Markets, has been named in a pending customer dispute on November 10, 2014, in which the customer requested $100,000.00 in damages based upon allegations that Santariello excessively traded speculative and high-risk investments within the customer’s account, and effected unsuitable transactions which…
Henry C. Prange IV, of Green Bay, Wisconsin, a stockbroker currently registered with KCD Financial, Inc., has been named in a pending customer initiated investment related arbitration claim on May 24, 2016, in which the customer requested $35,000.00 in damages based upon allegations that Prange made investment recommendations that were unsuitable for the customer. Also, Randall…
Robert K. Ratcliff, of Denton, Texas, a stockbroker currently registered with Stifel, Nicolaus & Company, Inc., has been named in a pending customer initiated investment related arbitration claim on January 8, 2016, in which several customers have collectively requested $75,000.00 in damages based upon allegations against Ratcliff of breaching his fiduciary and contractual obligations, making…
Barry M. Kiront, of Garden City, New York, a stockbroker formerly associated with Woodstock Financial Group, Inc., has been named in a customer initiated investment related arbitration action on March 20, 2015, based upon allegations against Kiront including unauthorized trading, unsuitability, churning, breach of contract, breach of fiduciary duty, misrepresentation, negligence, and unjust enrichment. The…
Rick A. Davidson, of New York, New York, a stockbroker formerly associated with Morgan Stanley, has been named in a customer initiated investment related arbitration claim on July 22, 2016, in which the customer requested $1,000,000.00 in damages based upon allegations that Davidson effected unsuitable investments in the customer’s investment account from January of 2013…
Parks Heard Brown Jr., of Marietta, Georgia, a stockbroker formerly associated with VSR Financial Services, Inc., has been named in a customer initiated investment related arbitration claim on October 14, 2016, based on allegations that Brown effected unsuitable investment transactions in the customer’s account. FINRA Public Disclosure reveals that Brown has been subject to three…
Glenn McDowell, of New York, New York, a stockbroker formerly associated with National Securities Corporation, Inc., was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that McDowell effected unauthorized trades in a customer’s account. Department of Enforcement v. Glenn McDowell, No. 2013035902701 (Oct. 28, 2016). According to the Complaint, from May 24,…
Fernando de la Lama Merino, of Miami, Florida, a stockbroker formerly registered with EFG Capital International, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that de la Lama failed to cooperate in a FINRA investigation into allegations of de la Lama’s sales practice violations. Department of Enforcement v….
McBarron Capital LLC, a broker-dealer headquartered in Greenwich, Connecticut, was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that the firm failed to supervise suitability determinations pertaining to private placement investments. Department of Enforcement v. McBarron Capital LLC, No. 2015044211103 (Oct. 25, 2016). According to the Complaint, between January of 2011 and…
Richard Sampley, of Atlanta, Georgia, a stockbroker formerly registered with Raymond James & Associates, Inc., was fined $15,000.00 and suspended for ten months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No….
Anthony Paul Lombardi, of Carlsbad, California, a stockbroker formerly registered with Capital Financial Services, was fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2014042740201 (Oct. 24,…
Stuart G. Dickinson, of Highland Park, Texas, a stockbroker formerly registered with WFG Investments, Inc., has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per a FINRA Office of Hearing Officers’ Default Decision containing findings that Dickinson made unsuitable investment recommendations to customers. Department of Enforcement…
Donald Bartelt, of West Palm Beach, Florida, a stockbroker formerly registered with Newport Coast Securities has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per a FINRA Office of Hearing Officers’ Default Decision containing findings that Bartelt effected unsuitable trades and churned customer accounts. Department of Enforcement…
Antonio Costanzo, of West Palm Beach, Florida, a stockbroker formerly registered with Newport Coast Securities, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity based upon a Default Decision containing findings that Costanzo made unsuitable investment recommendations to customers, effected unsuitable trades, churned customer accounts, and failed…
David M. Levy, of West Palm Beach, Florida, a stockbroker formerly registered with Newport Coast Securities, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per a FINRA Office of Hearing Officers’ Default Decision containing findings that Levy effected unsuitable trades and churned customer accounts, made recommendations…
Peter B. Cohen, of Simsbury, Connecticut, a stockbroker with Ameritas Investment Corp., has been named in a customer initiated investment related arbitration claim on March 17, 2016, based upon allegations against Cohen of misrepresentation of facts concerning investments, fraudulent inducement, breach of fiduciary duty, and unjust enrichment. Guiliano Law Group Our practice is limited to…
Titan Securities, of Addison Texas (CRD No. 131392), along with Brad C. Brooks, its hief compliance officer and president, and Richard Wayne Demetriou, a registered representative, were charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Demetrio made misrepresentations to customers and failed to disclose an outside business activity;…
Will R. Freeman, of Oklahoma City, Oklahoma, a stockbroker formerly registered with Wilbanks Securities, Inc., has been named in a customer initiated investment related arbitration claim on November 24, 2014, in which the customer requested $1,465,000.00 in damages based upon allegations that Freeman effected an unsuitable investment transaction in the customer’s account pertaining to an…
Alex Etter, of Englewood Cliffs, New Jersey, a stockbroker formerly registered with Caldwell International Securities, was fined $10,000.00, and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per a FINRA Order Accepting Offer of Settlement containing findings that Etter effected unsuitable investment recommendations to customers. Department of Enforcement v….
Tom Puentes, of Langley, Washington, a stockbroker formerly registered with Morgan Stanley, was fined $15,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he effected discretionary trades in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2014042676301 (Oct. 13, 2016)….
Mark Tauzin of Lafayette, Louisiana, a stockbroker formerly associated with LPL Financial LLC, was fined $20,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he effected unsuitable trades of unit investment trusts in customer accounts. Letter of Acceptance, Waiver and Consent,…
Houlihan Capital, LLC, headquartered in Chicago, Illinois, as well as Andrew Smith, its president, and chief compliance officer, were censured and fined by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm and Smith made false statements, omissions, and unwarranted statements concerning the benefits and risks of private placement offerings. Letter of…
Gregory R. Bauer, a former stockbroker with Waddell & Reed, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he committed the fraudulent conversion of customer funds. Letter of Acceptance, Waiver and Consent, No. 2016051508101 (Oct. 13, 2016). According to the AWC,…
David Perez, of New York, New York, a stockbroker registered with Aegis Capital Corp., has been named in a pending customer initiated investment related arbitration action, in which the customer requested $79,548.00 in damages based upon allegations that Perez effected excessive trades in the customer’s account, failed to follow the customer’s instructions, and was ultimately…
Delbert W. Carnes, of Colorado Springs, Colorado, a stockbroker registered with Woodbury Financial Services, Inc., has been named in a customer initiated investment related arbitration claim on April 20, 2015, in which the customer alleged that Carnes made misrepresentations to the customer regarding the purchase of a variable annuity investment. FINRA Public Disclosure reveals that…
Dennis H. Cambal, of Yarmouth, Massachusetts, a stockbroker registered with NBC Securities, Inc., has been named in ten customer initiated investment related arbitration claims, according to FINRA Public Disclosure. Particularly, on March 24, 2015, Cambal settled a customer initiated investment related arbitration claim for $24,999.00 in damages based upon allegations that Cambal effected unsuitable investment…
William K. Bradley, of New York, New York, a stockbroker formerly with Newbridge Securities Corporation, now associated with Meyers Associates, has been named in a pending customer initiated investment arbitration claim, in which the customer has requested $30,236.00 in damages based upon allegations that Bradley effected unsuitable investments in the customer’s account. FINRA Public Disclosure…
Bishoy G. Mankarios, of Syosset, New York, a stockbroker formerly associated with Rothschild Lieberman LLC, has been named in a customer initiated investment related arbitration claim, in which the customer has requested $130,000.00 in damages based upon allegations that Mankarios breached his fiduciary duty and contractual obligations with the customer, effected unsuitable investment transactions, churned…
Jan E. Haynes, of La Jolla, California, a stockbroker formerly registered with Centaurus Financial, Inc., has been named in twelve customer initiated investment arbitration actions, according to FINRA Public Disclosure. Particularly, on July 17, 2014, Haynes settled a customer initiated investment arbitration action for $22,500.00 in damages based upon allegations that Haynes misrepresented facts to…
Matthew A. Bell, of San Antonio Texas, a stockbroker formerly registered with Securities America, Inc., has been named in a customer initiated investment related arbitration claim on December 8, 2015, in which the customer requested $5,000.00 in damages based upon allegation that Bell breached his fiduciary duty to the customer and made investment recommendations which…
Wade Lawrence, of Dallas, Texas, a stockbroker formerly registered with Southwest Securities, Inc., was charged by The United States Securities and Exchange Commission (SEC) in a Complaint alleging that Lawrence defrauded customers and breached his fiduciary obligations by way of Lawrence’s unauthorized trades and misrepresentations. Securities and Exchange Commission v. Wade James Lawrence, Case No….
David Randall Lockey, of Dallas, Texas, a stockbroker formerly registered with SWS Financial Services, Inc., was fined $10,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member, ordered to provide restitution of $5,329.75, and disgorged of $46,447.38 per a FINRA Order Accepting Offer of Settlement containing findings that Lockey…
Jason H. Klabal, of New York, New York, a stockbroker formerly registered with Legend Securities, Inc., disclosed several customer initiated investment related arbitration claims. Specifically, on November 17, 2015, Klabal settled a customer initiated investment related arbitration claim for $50,000.00 in damages based upon allegations that Klabal was responsible for the customer’s losses on an…
Michael B. Stern, of Boca Raton, Florida, a stockbroker formerly registered with Herbert J. Sims & Co. Inc., has been named in a customer initiated investment related arbitration claim on May 18, 2016, in which the customer requested $50,000.00 in damages based upon allegations that Stern made unsuitable investment recommendations, breached his fiduciary duty, and…
Bruce A. Slater, of Northville, Michigan, a stockbroker with Sagepoint Financial, Inc. was named in a customer initiated investment related arbitration claim on February 8, 2016, in which the customers requested $500,000.00 in damages based upon allegations that Slater misrepresented the nature, fees, and risks associated with investment products that were recommended to the customers….
Leavitt F. Sanders, of West Point, Georgia, a stockbroker formerly registered with Triad Advisors, Inc., was named in a customer initiated investment related arbitration claim on August 15, 2016, in which the customers requested $3,835,000.00 in damages based upon allegations that Sanders effected an investment strategy for customers which was not suitable. From December 15,…
Lisa Lowi, of Boca Raton, Florida, a stockbroker formerly registered with RBC Capital Markets, LLC, has been named in a number of customer initiated investment related arbitration claims. Specifically, between September 14, 2016, and September 16, 2016, Lowi was named in three customer initiated investment related arbitration claims, in which customers have requested millions of…
Richard Lee, of Englewood Cliffs, New Jersey, a stockbroker formerly registered with Caldwell International Securities Group, was suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Order Accepting Offer of Settlement containing findings that Lee made unsuitable investment recommendations. Department of Enforcement v. Richard Lee,…
Tobin J. Senefeld, of Carmel, Indiana, a stockbroker with Pin Financial, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that Senefeld engaged in a Ponzi scheme. Letter of Acceptance, Waiver and Consent, No. 2015045728801 (Oct….
Stephen Giannantonio, of New York, New York, a stockbroker with Aegis Capital Corp., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver and Consent, No. 2015047037401 (Oct. 4, 2016). According to the…
Donald Shelby Toomer, of Las Vegas, Nevada, a stockbroker formerly associated with Wells Fargo Advisors Financial Network, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per a FINRA Officer of Hearing Officers Expedited Hearing Panel Decision containing findings that Toomer refused to cooperate with a FINRA…
Jeremy D. Hare, of Philadelphia, Pennsylvania, a stockbroker formerly registered with Oppenheimer & Co. Inc., has been named in a pending customer initiated investment related arbitration claim on September 14, 2016, in which the customer requested $1,000,000.00 in damages based upon allegations that Hare charged the customer with excessive commissions, committed negligence, breached his fiduciary…
Daren F. Dorval, of Staten Island, New York, a stockbroker with Legend Securities Inc., has been named in a pending customer initiated investment related arbitration claim on April 10, 2015, in which a customer requested $150,000.00 in damages based upon allegations against Dorval of making false statements to the customer concerning investments, failing to abide…
Mark Kaplan, of Woodbury, New York, a stockbroker with Vanderbilt Securities, LLC, was named in a customer initiated investment related arbitration claim on February 15, 2016, in which the customer has requested $1,130,000.00 in damages per allegations against Kaplan of effecting unsuitable investment transactions for the customer. FINRA Public Disclosure reveals that Kaplan has been…
Jay J. Gruenebaum, of Zanesville, Ohio, a stockbroker formerly registered with Stifel, Nicolaus & Company, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that Gruenebaum mishandled customer accounts. Letter of Acceptance, Waiver and Consent, No….
Jeffrey Hamilton Howell, of Chesterfield, Missouri, a stockbroker formerly registered with UBS Financial Services, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made misstatements to a customer concerning account values, attempted to conceal such conduct by altering firm statements, and…
Robert P. Lappin, of Las Vegas, Nevada, a stockbroker formerly associated with New England Securities, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made unsuitable recommendations to customers regarding unit investment trusts. Letter of Acceptance, Waiver and Consent, No….
Carlo W. Corzine, of Boca Raton, Florida, a stockbroker with Dawson James Securities, Inc., has been named in a customer initiated investment related arbitration claim on June 22, 2016, in which the customer requested $60,000.00 in damages based upon allegations against Corzine of effecting unauthorized trades in the customer’s account, breaching his fiduciary duty, making…
Charles C. Fackrell, of Yadkinville, North Carolina, a stockbroker formerly registered with LPL Financial LLC, has been named in a pending customer initiated investment related arbitration claim on June 10, 2016, in which the customer alleged that Fackrell made unauthorized and excessive trades in the customer’s account, effected transactions in the customer’s account which were…
Mark A. Lisser, of New York, New York, a stockbroker formerly associated with Global Arena Capital Corp, has been named in a customer initiated investment related arbitration claim on October 26, 2015, in which the customer has requested $61,458.00 in damages based upon allegations against Lisser of churning the customer’s account, using margin in the…
Michael Donnelly, of Lecanto, Florida, a stockbroker formerly associated with Coastal Equities, Inc., was named in a pending customer initiated investment related arbitration claim on July 1, 2016, in which the customer has requested $53,183.00 in damages based upon allegations against Donnelly of misappropriating the customer’s assets that the customer provided him for investment opportunities….
Heather P. Weber, of Tampa, Florida, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith Incorporated, has been named in a pending customer initiated investment related arbitration claim on July 7, 2016, in which the customer requested $500,000.00 in damages based upon allegations that Weber made omissions and misrepresentations to the customer concerning investments, and…
Alan Z. Appelbaum, of Boca Raton, Florida, a stockbroker with Aegis Capital Corp., has been named in a pending customer initiated investment related arbitration claim on December 21, 2015, in which the customer has requested $50,000.00 in damages based upon allegations against Appelbaum of failing to adopt an investment strategy that was suitable for customers…
Mickey Long, of Plano, Texas, a stockbroker with VSR Financial Services, Inc., was suspended by Texas State Securities Board after being found to have made unsuitable investment recommendations of real estate investments and other alternative investments. Order No. REG16-SUS-03 (Oct. 4, 2016). According to the Order, Long was responsible for advising a seventy-year-old customer who…
Charles C. Kulch, of Nashua, New Hampshire, a stockbroker with Next Financial Group, recently disclosed that he settled a customer dispute for $120,000.00 on June 22, 2016, based upon allegations that Kulch mismanaged the customer’s securities account. FINRA BrokerCheck reveals that Kulch has been subject to seven other customer disputes. Particularly, on April 21, 2015,…
Trustmont Financial Group, Inc., headquartered in Greensburg, Pennsylvania, was fined $100,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm, inter alia, did not properly supervise unit trusts transactions, and failed to adequately supervise consolidated reports which the firm distributed to customers. Letter of Acceptance, Waiver and Consent, No. 2014038914601 (Sept. 23,…
IMS Securities, Inc., of Houston, Texas, was censured and fined $100,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to supervise aspects of its variable annuity business. Letter of Acceptance, Waiver and Consent, No. 2014039417401 (Sept. 30, 2016). According to the AWC, between July 15, 2013 and May 8, 2014,…
Robert R. Frith II, of Minnetonka, Minnesota, a registered representative with Larson Financial Securities LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that made misleading statements to customers concerning variable life insurance contracts. Letter of Acceptance, Waiver and Consent, No….
Justin Amaral, of Boston, Massachusetts, a stockbroker with Morgan Stanley, became subject to a pending customer dispute on February 4, 2016, in which the customer requested $750,000.00 in damages in connection with allegations against Amaral which included Amaral breaching his fiduciary duty to the customer pertaining to investments. FINRA BrokerCheck reveals that Amaral has been…
Tye C. Williams, of Frisco, Texas, a stockbroker with Next Financial Group, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm any capacity after he consented to findings that he obstructed an investigation into allegations that Williams converted funds from customers, effected transactions in customer accounts which were unauthorized,…
Thomas Fross, of The Villages, Florida, disclosed that a customer received a judgment or award against him for $24,000.00 in damages based upon the allegations that Fross breached his fiduciary duty and contractual obligations to the customer, made omissions and misrepresentations to the customer with regard to investments, and made unsuitable investment recommendations. FINRA BrokerCheck…
Neal Scott, of New York, New York, a stockbroker formerly associated with with Euro Pacific Capital, Inc., and presently registered with Meyers Asociates, is subject to a pending customer dispute from September 9, 2015, in which the customer requested $150,000.00 in damages based upon allegations that Scott breached his fiduciary duty to his customer, and…
Jeffrey Hunter Smith, of Williamsburg, Virginia, a stockbroker with Morgan Stanley, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed an investigation into allegations of his unauthorized borrowing of customer funds. Letter of Acceptance, Waiver and Consent, No. 2015044363701 (Sept. 30,…
Amr Mostafa Aboulmagd, of Horsham, Pennsylvania, a registered representative for NYLife Securities LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that he made unsuitable recommendations and misrepresentations to customers. Letter of Acceptance, Waiver…
Nathan A. Majors, of South Holland, Illinois, a stockbroker with J.P. Morgan Securities LLC, was fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in outside business activities which were not permitted by his firm. Letter…
Feisal A. Malik, of Allentown, Pennsylvania, a stockbroker with Signator Investors, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2016048783301 (Sept. 30, 2016). According…
Alejandro Falla, of Coral Cables, Florida, a stockbroker with BAC Florida Investments, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Falla had fraudulently charged mark-ups to customers. Department of Market Regulation v. Falla, No. 20160500923-01 (Sept. 26, 2016). According to the Complaint, Falla worked in the capacity…
David W. Williams, of Dallas Texas, a stockbroker with WFG Investments, Inc., is subject to a pending customer dispute from March 14, 2016, in which the customer requested $2,780,000.00 in damages in connection with allegations against Williams of failing to conduct an adequate investigation into an investment, making misrepresentations to the customer, breaching his fiduciary…
Thomas J. Tedeschi, of Farmingdale, New York, a stockbroker with Salmon Whitney Financial, was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after FINRA found that Tedeschi failed to abide by a settlement agreement or arbitration award in connection with a customer dispute. In late 2015, the FINRA…
Jay Dee Jordan of Oklahoma City, Oklahoma, a stockbroker with WFG Investments, Inc., is the subject of a pending customer initiated investment related arbitration claim filed on July 13, 2016, in which the customer requested $42,000.00 in damages based upon allegations that Jordan of effected unsuitable and unauthorized investment transactions in the customer’s securities account. FINRA Public…
David A. Allen, of Bethel, Vermont, one of the former owners of defunct Avenir Financial Group, on January 28, 2016, was terminated from Avenir Financial Group amid allegations that he had committed funds despite not having authorization, failed to supervise, and took possession of the firm’s funds without authority. At time tme of his termination,…
Wayne Fitzgerald Ford of Farmingdale, New York, a stockbroker formerly with Salomon Whitney Financial, but now out of the business is the subject of a pending customer dispute from March 14, 2016, in which the customer requested $50,000.00 in damages based upong the allegations that Ford breached his contractual and fiduciary obligations and effecting unsuitable transactions…
Michael L. Oromaner of Farmingdale, New York, a stockbroker formerly with Salomon Whitney Financial, and now associated with Cova Capital Partners is subject to a pending customer dispute from March 23, 2016, where a customer requested $750,000.00 in damages in connection with allegations against Oromaner of utilizing high pressure sales techniques, effecting unsuitable investment transactions, churning…
Yousuf Saljooki, also known as Joe Saljooki, of Farmingdale, New York, a stockbroker with Salomon Whitney Financial, is subject to a pending customer dispute from March 23, 2016, in which several customers requested $300,000.00 in damages in connection with allegations against Saljooki of effecting investment transactions which were unsuitable, churning the customers’ investment accounts, charging…
Wesley O. Clinton, of Lynbrook, New York, a stockbroker with Network One Financial Securities Inc., is subject to a customer dispute from March 28, 2016, seeking $137,000.00 in damages based upon the allegations that Clinton engaged in unsuitable transactions, effected unauthorized trades in the customer’s account, and that Network One failed to supervise him. FINRA…
James R. Bernthal, of New York, New York, a stockbroker with Dawson James Securities, has been named in pending customer initiated investment related claim filed on March 28, 2016 seeking $137,000.00 in damages based upon allegation that Bernthal effected unsuitable transactions in customer accounts and that Dawson James failed to supervise Bernthal. FINRA Public Disclosure…
Lucas Lichtman, of Englewood Cliffs, New Jersey, a stockbroker for Caldwell International Securities Group, was fined $7,500.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Order Accepting Offer of Settlement containing findings that Lichtman engaged in unsuitable investment recommendations. Department of Enforcement v….
The legal adage “bad cases make bad laws” is generally attributed to Judge Oliver Wendell Holmes, Jr., the same distinguished jurist that brought us “three generations of imbeciles are enough.” Buck v. Bell, 274 U.S. 200 (1927). However, in fact, although the adage traces back to 1837, Holmes, in Northern Securities Co. v. United States…
Marlon O. Cole, of New York, New York, a stockbroker formerly associated with Legend Securities, Inc., is the subject of a pending customer dispute filed in January against Legend Securities in which the customer has requested damages based upon allegations that Cole of effected unauthorized trades in the customer’s account. FINRA Public Disclosure records reveal that…
Robert J. Murray III, of New York, New York, a stockbroker formerly ssociated with Spartan Capital Securities, LLC, is the subject of a customer initiated, investment related dispute filed in November 12, 2015, based upon the allegation that Murray made unsuitable investment recommendations. FINRA BrokerCheck reveals that Murray has been subject to eleven customer initaited, investment…
Joseph M. Fedorko Jr., of New York, New York, a stockbroker with Laidlaw & Company, Ltd. is subject to a customer dispute filed on August 8, 2016, in which he was alleged by the customer to be responsible for the customer’s investment losses on bond investments. Prior to this action, Fedorko was also subject to…
Patrick H. Maddren, of Boca Raton, Florida, a stockbroker formerly associated with Dawson James Securities, Inc., became subject to a pending customer dispute from March 31, 2016, in which the customer has requested $1,000,000.00 in damages after alleging that Maddren made misrepresentations concerning investments to the customer, did not follow the customer’s instructions, engaged in…
Nathaniel R. Clay, of New York, New York, a stockbroker formerly with National Securities Corporation, is the subject of a pending customer dispute in which a customer seeks $513,218.40 in damages based upon the allegation that Clay committed negligence, breached his fiduciary obligations, and made misrepresentations to the customer. FINRA BrokerCheck reveals that Clay has been…
Timothy V. Longo, of Woodbury, New York, a stockbroker formerly with Trident Partners Ltd., is the subject of a pending customer dispute in which the customer has requested in damages based upon the allegation that Longo engaged in unauthorized and unsuitable trading in the customer’s account. FINRA BrokerCheck reveals that Longo has been previously subject…
Christopher Cervino, of Edison, New Jersey, a stockbroker with COR Clearing LLC, is subject to a pending customer dispute in which a customer has requested $778,119.00 in damages in connection with allegations against Cervino of perpetrating a fraud involving the sale of valueless securities to customers. FINRA Public Disclosure records reveal that Cervino is also…
Frank T. Dunn Jr., of Bend, Oregon, a stockbroker with Concorde Investment Services, LLC, is the subject of a pending customer dispute in which the customer has requested $452,368.15 in damages based upon with allegations that Dunn breached his fiduciary duty, was negligence, and made misrepresentations in connection with the recommendation and sale of a…
Michael D. Teutonico, of New York, New York, a stockbroker formerly associated with E.J. Sterling, LLC, is subject to a pending customer dispute from October 29, 2015, in which the customer has requested $206,000.00 in damages in connection with allegations against Teutonico of engaging in unsuitable investment practices, excessively trading the customer’s account, and over-concentrating…
Marc A. Reda, of New York, New York, a stockbroker formerly with PHX Financial, Inc. is the subject of a customer intiated, investment related dispute where Reda was alleged to to have breached his fiduciary duty and made unsuitable investment recommendations. FINRA Public Disclosure records reveal that Reda has been previously subject to nine customer…
Laurence M. Torres, of Staten Island, New York, a stockbroker with First Standard Financial Company LLC, is subject to a customer dispute from March 22, 2016, in which the customer requested damages of $99,999.00 based upon the allegation that Torres engaged in unsuitable investment practices, breached his fiduciary duty to the customer, and churned the…
Mark Ketner, of Woodbury, New York, a stockbroker with Maxim Group LLC, was named in a customer intiiated investment related claim where the customer has requested $475,000.00 in damages based upon the allegation that Ketner made excessive and unsuitable trades of investments in the customer’s account. FINRA’s BrokerCheck also reveals that Ketner has been subject…
Salvatore Gioe, of New York, New York, a stockbroker formerly with PHX Financial, Inc., is the subject of a customer initiated investment related complaint where the customer is requesting $1,400,000.00 in damages based upon the allegations that Gioe engaged in unauthorized trading in the customer’s account. This brings the total number of customer claims based…
Larry C. Wolfe, of Boca Raton, Florida, a stockbroker with Herbert J. Sims & Co., Inc., is the subject of an investment related customer initiated arbitration claim before the Financial Industry Regulatory Authority where the customer is seeking $1,500,000.00 in damages based upon the allegations that Wolfe engaged in fraudulent omissions and misrepresentations concerning investments,…
Michael McMahon, of Westbury, New York, a stockbroker with National Securities Corporation, is presently subject to eight customer initiated investment related arbitration claims alleging fraud. The customer disputes, which appear to have been lodged between July 20, 2015, and June 20, 2016, all contain allegations that McMahon made negligent misrepresentations to customers, breached his fiduciary to…
Sean P. McCabe, of Westbury, New York, a stockbroker with formerly with National Securities Corporation, is the subject of a customer customer initiated investment related claim in which the customer seeks $550,000.00 in damages based upon the allegations that McCabe committed negligence, breached his fiduciary duty to the customer, and made misrepresentations concerning investments. In…
Stephen H. Orr, of Houston, Texas, a stockbroker with H. Beck, Inc., has been named in a customer dispute where the customer is seeking $5,000,000.00 in damages based upon the allegations that Orr made unsuitable investment recommendations. FINRA’s BrokerCheck reveals that Orr has been previously subject to five other disclosure incidents, three of which involve…
Rafael Santiago, of Edison, New Jersey, a stockbroker with COR Clearing, LLC, has been named in a customer dispute where the customer has requested $778,119.00 in damages based upon the allegations that Santiago made recommendations to purchase securities that were valueless and engaged in a scheme to defraud the investor. According to FINRA BrokerCheck, Santiago…
Mark Trewitt, of Plano, Texas, a stockbroker with VFG Securities, Inc., has been named in a customer initated investment related dispute. On June 29, 2016, a customer filed an arbitration claim before the Financial Industry Regulatory Authority requesting $130,000.00 in damages and alleging that Trewitt made misrepresentations concerning the safety of an investment program and…
Samuel D. Wyman, Jr., of Westhampton Beach, New York, a stockbroker with Gilford Securities Incorporated, is subject to a pending customer dispute from August 14, 2015, in which the customer requested $175,000.00 in damages after alleging that Wyman made unsuitable investment recommendations. FINRA Public Disclosure records reveal that Wyman has been previously subject to customer…
Bernard T. Weber, of Minnetonka, Minnesota, a stockbroker with Feltl & Company, is subject to a pending customer dispute from November 24, 2015, in which the customer has requested $238,000.00 in damages after alleging that Weber failed to follow the customer’s investment instructions, made misrepresentations to the customer concerning investments, and churned the customer’s investment…
Shawn M. McIntyre, of Minneapolis, Minnesota, a stockbroker for Feltl & Company, has settled a customer dispute for $300,000.00 in damages after the customer alleged that McIntyre made misrepresentations to the customer, engaged in excessive trading, and failed to properly disclose to the customer the risks associated with investing in low priced penny stocks. On…
Richard J. Reynolds, of Minneapolis, Minnesota, a stockbroker with Northland Securities, is currently subject to a pending customer dispute from August 22, 2014, in which the customer has requested $680,935.80 in damages in connection with allegations against Reynolds of committing securities fraud, breach of contract, and breach of his fiduciary duty to the customer pertaining…
Kirk J. Gill, of Tucson, Arizona, a stockbroker with Morgan Stanley, is subject to several pending customer disputes. Particularly, on August 3, 2016, a customer lodged a pending dispute against Gill, in which the customer requested $500,000.00 in damages after alleging that Gill made recommendations to the customer that were unsuitable. FINRA’s BrokerCheck reveals that…
Paul E. Smyth, of Fairfield, Connecticut, a registered representative with MML Investors Services, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of misappropriating a customer’s insurance payments. According to the AWC, MML Investors Services…
John P. Mosley, of Westbrook, Maine, a stockbroker with NYLife Securities LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after he consented to findings that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2016051400601 (Sept. 30, 2016). According to the AWC, while Mosley…
Robert M. Kuhn, of Plano, Texas, a stockbroker with UBS Financial Services Inc., is subject to a arbitration claim by a customer requesting $100,000.00 in damages because allegedly Kuhn misrepresented an annuity that the customer purchased, and made an unsuitable investment recommendations. FINRA Public Disclosure records show that on October 20, 2015, UBS Financial Services…
Things are headed south for Southlake, Texas, Southwest Securities stockbroker Richard M. Ohlhaber, after he and his firm have been named in another customer dispute, this one seeking 300,000.00 in damages in for securities fraud. This is not the first time things have gone south for Ohlhaber. FINRA’s BrokerCheck reveals that Ohlhaber is also subject…
Terry W. Chilton, of Beaumont, Texas, a stockbroker with IMS Securities, Inc., is subject to a customer dispute from March 7, 2016, in which a customer alleged that Chilton made misrepresentations concerning investments, and engaged in the unsuitable recommendations. FINRA Public Disclosure records also reveal that on September 16, 2013, a customer was awarded $1,172,250.00…
Richard E. Poston, of Plano, Texas, a stockbroker with H. Beck, Inc., disclosed via FINRA’s BrokerCheck that he settled a customer dispute for $185,000.00 on March 28, 2016, after the customer alleged that Poston engaged in the unsuitable recommendation of non-traded real estate investment trusts. FINRA Public Disclosure records reveal that Poston has been recently…
Harris W. Kirk, of Richardson, Texas, a stockbroker Reef Securities, Inc., is subject to a pending customer dispute from February 11, 2016, in which a customer has requested $250,000.00 in damages after alleging that Kirk failed to conduct due diligence concerning investments, failed to disclose investment risks to the customer, committed breach of contract, and…
Investors Capital Corporation, headquartered in Lynnfield, Massachusetts, was censured and fined $250,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm engaged in the unsuitable recommendations of unit investment trusts and steepeners to customers. Letter of Acceptance, Waiver and Consent, No. 2010022046101 (Oct. 3, 2016). According to the AWC, between June of…
James Gabriel Collard, of Boerne, Texas, was fined $5,000.00 and suspended by Financial Industry Regulatory Authority (FINRA) in connection with an Order Accepting Offer of Settlement containing findings that Collard charged customers’ excessive markups on investments. Department of Market Regulation v. James Gabriel Collard, No. 20120342425-01 (Sept. 23, 2016). According to the Order, between February…
The Office of Investor Education and Advocacy of the United States Securities & Exchange Commission has issued an Investor Bulletin regarding microcap stocks or as penny stocks. The Investor Bulletin provides a general information and a list of “red flags” of fraud and other important factors generally associated with microcap stock fraud. The SEC Investor…
Reverse Convertible Notes are highly complex financial products that are structured to pay a higher interest rate than conventional debt of the same issuer because of the inclusion of the embedded derivative that provides essentially a synthetic put on the underlying stock. Investors get the higher rate of return which is capped, if the underlying…
Almost invariably, investors that fall prey to cold-calling boiler-room operations, find themselves on what best can be described as a “Suckers List.” The pitches are generally all the same: we are a Wall Street firm that specializes in certain investment research, we are formerly an “institutional” firm, but we are now offering our services to…
Felix A. Bartolomei, of Orlando, Florida, is subject to a pending customer dispute from June 16, 2016, in which the customer requested $50,000.00 in damages after alleging securities fraud, overconcentration of the customer’s investment account, and unsuitability of investments in connection with the customer’s purchase of closed-end funds and Puerto Rico bonds. FINRA Public Disclosure…
Sean W. Mollard, of Boca Raton, Florida, a stockbroker for Dawson James Securities, Inc., became subject to a pending customer dispute from March 31, 2016, in which a customer requested $1,000,000.00 in damages after alleging that Mollard made material misrepresentations regarding investments, charged excessive commissions to the customer, engaged in excessive trading, failed to abide…
Much to his chagrin, Larry S. Werbel, of Chagrin Falls, Ohio, a former stockbroker for Concorde Investment Services, LLC, whose career was wrecked when he was forever barred by FINRA earlier this year, is now subject to a pending customer dispute from August 3, 2016, in which the customer requested $778,119.36 in damages after alleging…
Steven L. Stahler, of Baton Rouge, Louisiana, is subject to a pending customer dispute from July 20, 2015, in which the customer requested $793,101.00 in damages in connection with allegations against Stahler of failing to diversify the customer’s investments that had been recommended by Stahler to the customer. According to FINRA Public Disclosure, Stahler has…
David L. Hannett Sr., of Vienna, Virginia, a stockbroker with Invest Financial Corporation, is subject to a pending customer dispute from March 10, 2015, in which the customer has requested $5,000,000.00 after alleging that Hannett mishandled the customer’s investment account assets. Public Disclosure records also reveal that on March 9, 2012, Hannett settled a customer…
Benjamin G. Aibel, of New York, New York, a stockbroker with Wunderlich Securities, Inc., is currently subject to a pending customer dispute from December 18, 2015, in which the customer has requested $5,000.00 amid allegations against Aibel for recommending unsuitable investments, and causing the customer to suffer from poor investment performance. Aibel is also subject…
Ralph E. Derose, of Beachwood, Ohio, a stockbroker with Wunderlich Securities, Inc., is subject to a pending customer dispute from March 15, 2016, in which the customer has requested $3,000,000.00 in damages amid allegations against Derose of failing to follow the customer’s investment instructions and poor investment performance. Public Disclosure records reveal that in addition…
Murray B. Roark, of Dallas, Texas, a stockbroker with Wunderlich Securities, Inc., is subject to a pending customer dispute from February 17, 2016, in which the customer requested $303,950.00 in damages after alleging that Roark failed to diversify the customer’s assets, over-concentrated the customer’s positions, and engaged in misrepresentation regarding investments. Public Disclosure Records show…
Michael J. Hebner, a stockbroker with IFS Securities, is subject to a pending customer dispute from May 3, 2014, in which customers have requested $500,000.00 in damages after alleging that Hebner made unsuitable investment recommendations, and engaged in unauthorized transactions in the customers’ accounts. Hebner has been the subject of five customer initiated investment related…
Bassam S. Salem, of Birmingham, Michigan, a stockbroker with Wunderlich Securities, Inc., is subject to a pending customer dispute from May 3, 2016, in which the customer has requested $281,000.00 in damages amid allegations against Salem of engaging in unauthorized trading, failing to supervise, breach of fiduciary duty, and making unsuitable investment recommendations in several…
Charles Geraci, of The Woodlands, Texas, a stockbroker for VSR Financial Services, Inc., is subject to a pending customer dispute from July 25, 2016, in which the customer has requested $500,000.00 in damages after alleging that Geraci made unsuitable investment recommendations in alternative investments and private placement investments. According to FINRA Public Disclosure Records, Geraci…
Michael A. Castillero, of New York, New York, a stockbroker with Alexander Capital, L.P., is subject to a pending customer dispute from July 19, 2016, in which the customer has requested $190,000.00 in damages after alleging that Castillero made negligent misrepresentations, effected unauthorized trades in the customer’s account, and engaged in unsuitable investment recommendations. On…
Joseph L. Cotter, of Wall, New Jersey, a stockbroker formerly with Next Financial Group, Inc., is subject to a pending customer dispute from June 22, 2016, in which a customer has requested $625,000.00 in damages in connection with allegations against Cotter of mismanaging the customer’s brokerage assets. Public Disclosure records also reveal that on March…
Barry W. Lemay, a stockbroker with Concorde Investment Services, LLC, is currently subject to a pending customer dispute from July 29, 2016, in which a customer has requested $2,822,797.02 in damages in connection with allegations against Lemay of breach of fiduciary duty, negligence, and unsuitable recommendations stemming from tenancy in common investments. FINRA Public Disclosure…
Gary L. Glover, of John’s Creek, Georgia, a stockbroker with Sterne Agee Financial Services, Inc., is subject to a pending customer dispute from August 12, 2015, in which a customer has requested $800,000.00 in damages in connection with allegations against Glover of making unsuitable tenancy in common or TIC investment recommendations. Public Disclosure records reveal…
Rushton L. Ardrey III, of Boston Massachusetts, a stockbroker with Newport Coast Securities, Inc., is currently subject to pending customer disputes. Particularly, on February 9, 2016, Ardrey became subject to a pending customer dispute in which he was alleged to have engaged in unauthorized and unsuitable trading. According to FINRA Public Disclosure Records, Ardrey has…
James Paul Kolf, of Middleton, Wisconsin, a stockbroker with New England Securities, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he made fraudulent misrepresentations to customers. Letter of Acceptance, Waiver and Consent, No. 2016050940701 (Sept. 6, 2016). According to the AWC, from October…
Richard Graham, of Lafayette, Indiana, a stockbroker registered with The Huntington Investment Company, was fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made unsuitable investment recommendations to customers. Letter of Acceptance, Waiver and Consent, No. 2015046281401 (Sept. 29, 2016). According to…
Michael Scott Lincoln, of San Diego, California, a stockbroker with LPL Financial, was fined $15,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to supervise unauthorized outside business activities and unauthorized loans, and falsified statements to his firm. Letter of Acceptance,…
Avenir Financial Group, of New York, New York as well as its chief executive officer, Michael Todd Clements and stockbroker Karim Ahmed Ibrahim, were all censured by Financial Industry Regulatory Authority (FINRA) in connection with a FINRA Office of Hearing Officers’ Extended Hearing Panel Decision which contained findings that the firm, Clements, and Ibrahim engaged…
Steven Mark Newman, of Houston, Texas, a stockbroker with E*Trade Securities LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per a FINRA Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that Newman engaged in unauthorized outside business activities. Department of…
Robert Estevez, of Greenwich, Connecticut, a stockbroker with Investors Capital Corporation, was fined $20,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he made unsuitable investment recommendations to customers. Letter of Acceptance, Waiver and Consent, No. 2014040158902 (Sept. 16, 2016). According to…
Glen J. Rauch, of Syosset, New York, a stockbroker with Avenir Financial Group, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Rauch engaged in significant sales practice violations, including the effecting of unauthorized and unsuitable transactions in customer accounts. Department of Enforcement v. Glen Rauch, No….
Jay K. Chitnis, of Atlanta, Georgia, a stockbroker with YieldQuest Securities, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity in connection with a FINRA Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that Chitnis committed securities fraud, converted funds, engaged in unauthorized trading,…
Peter F. Butler, of Cambridge, Ohio, a stockbroker and principal for Ameriprise Financial Services, Inc., conducting business under the same Partners Financial Group, was fined $15,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that Butler failed to supervise a registered representative who converted…
Mark A. Stanczyk, of Manlius, New York, a stockbroker fomerly associated with Pinnacle Investments, is subject to a pending customer dispute from February 1, 2016, in which the customer has requested $490,000.00 in damages in connection with allegations against Stanczyk of making unsuitable investment recommendations and trades in the customer’s account. Disclosure records reveal that…
Craig Sutherland, of Columbus, Ohio, a stockbroker with Money Concepts Capital Corp, is subject to a pending customer dispute from January 29, 2016. Particularly, the customer requested $300,000.00 in damages in connection with allegations against Sutherland of negligence, making misrepresentations to the customer, breach of fiduciary duty, breach of contract, and effecting transactions that were…
Aaron P. Brodt, of Scottsdale, Arizona, a stockbroker with Accelerated Capital Group, is currently subject to two pending customer disputes. Particularly, on April 26, 2016, a customer lodged a dispute against Brodt, in which the customer requested damages of $200,000.00 in connection with allegations against Brodt of making unsuitable investment recommendations to the customers for…
Jeffrey A. Smith, of Irvine, California, a stockbroker with Accelerated Capital Group, is subject to a customer dispute from May 25, 2016, in which four customers have requested $750,000.00 in connection with allegations against Smith for failure to supervise, negligence, breach of contract, excessively trading in customer accounts, breach of fiduciary duty, and fraud. Public…
Stuart Horowitz, of Coral Springs, Florida, a stockbroker with Securities America, Inc., was fined $100,000.00 and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he made unsuitable investment recommendations to customers. Letter of Acceptance, Waiver and Consent, No. 2013036692001 (Feb….
David M. Levy, of West Palm Beach, Florida, a stockbroker with Newport Coast Securities, is currently subject to a pending customer dispute. Particularly, on November 3, 2014, a customer requested $60,000.00 in damages in connection with allegations against Levy of churning the customer’s investment account. FINRA’s BrokerCheck reveals that Levy has been subject to thirteen…
Donald A. Bartelt, of Cave Creek, Arizona, is currently subject to a pending customer dispute from May 28, 2013, in which the customer requested $113,000.00 in damages in connection with allegations against Bartelt of engaging in misconduct over several years in the customer’s investment account. Public Disclosure records reveal that Bartelt has previously settled a…
Emil Botvinnik, of Farmingdale, New York, a stockbroker for Salomon Whitney Financial, is subject to a pending customer dispute from April 29, 2016, in which a customer requested $99,000.00 in damages in connection with allegations against Botvinnik of churning the customer’s account, and making investment recommendations which were not suitable for the customer. FINRA’s BrokerCheck…
Chad E. Thompson, of Atlanta, Georgia, a stockbroker with IFS Securities, is currently subject to a pending customer dispute from October 21, 2015, in which a customer has requested $150,000.00 in damages after alleging that Thompson made unsuitable recommendations, and churned the customers’ investment account. Public Disclosure records ‘ reveal that Thompson was previously subject to…
Michael Lavolpe, of New York, New York, a stockbroker for Meyers Associates, L.P., is currently subject to four pending customer disputes. Particularly, on April 7, 2016, a customer lodged a dispute against Lavolpe, requesting $110,480.00 in damages in connection with allegations of unsuitability. On April 7, 2016, Lavolpe became subject to another customer dispute, in…
Barry Hartman, of Missoula, Montana, a stockbroker registered with FSC Securities Corporation, became subject to a pending customer dispute on October 19, 2015, in which a customer requested $45,000.00 in damages after alleging that Hartman engaged in unauthorized transactions in the customer’s account and selected investments which were not suitable. On the same day, Hartman…
Thomas J. Dailey, of Youngstown, Ohio, a stockbroker with Sterne Agee Financial Services, Inc., is subject to a pending customer dispute from December 7, 2015, in which a customer requested $500,000.00 in damages in connection with allegations against Dailey of making misrepresentations to customers regarding Florida Capital Real Estate Partnerships. The customers alleged to have…
Gregory Dean, of Garden City, New York, a stockbroker with Worden Capital Management LLC, is currently subject to four pending customer disputes. Particularly, on June 20, 2016, Dean became subject to a pending customer dispute in which the customer has requested $138,032.66 amid allegations against Dean of fraud, negligence, breach of fiduciary duty, breach of…
Donald J. Fowler, of Garden City, New York, a stockbroker with Worden Capital Management LLC, is currently subject to two pending customer disputes. Particularly, on June 6, 2016, a customer requested $812,000.00 in damages in connection with allegations against Fowler of securities fraud in violation of Securities Exchange Act of 1934 Section 10(b) and 20(a),…
Michael A. Valdini, of Garden City, New York, a stockbroker with Worden Capital Management LLC, is subject to a pending customer dispute from April 2, 2015, in which the customer requested damages of $125,956.33 in connection with allegations against Valdini of negligent supervision, charging of excessive commissions, overconcentration of the customer’s assets, unsuitability, unauthorized trading…
Joseph Clemente, of Syosset, New York, a stockbroker with J.D. Nicholas & Associates, Inc., is subject to a pending customer dispute from October 24, 2014, in which a customer is requesting $57,130.00 in connection with allegations against Clemente of negligence, churning of the customer’s account, overconcentration of investments, negligence, unsuitability, and failure to supervise. Public…
Nick Son, of New York, New York, a stockbroker with Aegis Capital Corp., was named in a pending customer dispute on April 19, 2016. Specifically, the customer requested $65,984.66 in damages after alleging that Son utilized high pressure sales tactics with the customer, and made misrepresentations and other misleading statements to the customer in connection…
Kenneth L. Jones, of Tampa, Florida, a stockbroker with Aegis Capital Corp., was named in a pending customer dispute on March 28, 2016. The customer specifically requested $190,910.00 in damages in connection with allegations against Jones of making recommendations of investments that were not suitable for the customer, and breaching his fiduciary duty to the…
Paul Falcon, of Boca Raton, Florida, a stockbroker with Aegis Capital Corp., was named in a customer dispute on April 25, 2016. Particularly, the customer requested $190,672.12 in damages after alleging that Falcon made investment recommendations that were unsuitable for the customer, and alleged that the customer’s investment performance was poor. Public Disclosure records reveal…
Steven R. Luftschein, of Melville, New York, a stockbroker with Aegis Capital Corp., is currently subject to a pending customer dispute from June 3, 2016, in which a customer has requested $2,000,000.00 in damages in connection with allegations that Luftschein made investment recommendations that were unsuitable to customers, and mishandled the customers’ accounts. Disclosure records…
David Sheppard, of New York, New York, a stockbroker with Meyers Associates, L.P., is currently subject to a pending customer dispute. Specifically, on December 2, 2015, a customer requested $86,088.44 after alleging that Sheppard made unsuitable investment recommendations, engaged in unauthorized trades in the customer’s account, engaged in the improper use of margin, and breached…
Bruce Stark, of Melville, New York, a stockbroker with Aegis Capital Corp., is currently subject to two pending customer disputes. Particularly, on August 21, 2015, a customer requested $534,150.00 in damages after alleging that Stark churned and excessively traded in the customer’s account, engaged in unauthorized trades, and made unsuitable investment recommendations. According to FINRA…
James B. Schwartz, of Melville, New York, a registered representative with Aegis Capital Corp., is currently subject to a pending customer dispute from June 3, 2016, in which several customers requested $2,000,000.00 in damages in connection with allegations that Schwartz made unsuitable investment recommendations to customers, and mishandled customers’ accounts. According to FINRA Public Disclosure…
Barbara L. Bottoms, of Fairbanks, Arkansas, a stockbroker with Wells Fargo Advisors, LLC, was fined $17,500.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she engaged in the unauthorized trading in customer accounts. Letter of Acceptance, Waiver and Consent,…
Gerard F. Cipolla, of Rego Park, New York, a registered representative with PFS Investments Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of Cipolla’s unsuitable investment recommendations. Letter of Acceptance, Waiver and Consent,…
James B. Moran, of Florham Park, New Jersey, is subject to a pending customer dispute from May 11, 2016, in which a customer requested $167,640.35 in connection with allegations against Moran of effecting transactions in the customer’s account that were not suitable. According to FINRA records, Moran has been subject to six additional disclosure incidents….
Andrew B. Kramer, of Brooklyn, New York, a stockbroker registered with Capital Securities Management, Inc., is subject to two pending customer disputes. Particularly, on November 16, 2015, customers lodged a complaint against Kramer, in which $27,000.00 in damages were requested in connection with allegations that Kramer’s lack of attentiveness to the customers’ accounts resulted in…
Joe M. Pazmino, of New York, New York, a stockbroker for Aegis Capital Corp., is subject to two pending customer disputes. Particularly, on February 17, 2016, customers lodged a complaint against Pazmino, requesting $500,000.00 in damages per allegations that Pazmino engaged in excessive trading in the customers’ accounts, and made unsuitable investment recommendations. Public Disclosure…
Michael P. Dalessandro, of Colts Neck, New Jersey, a stockbroker with The Investment Center, Inc., became subject to a pending customer dispute on February 3, 2016, in which several customers alleged that Dalessandro made unsuitable recommendations to the customers. Apparently, the recommendations were made in 2013 and 2015, and involved investments in gas and oil,…
Dean T. Nicholson, of Summerfield, Florida, recently settled a customer dispute on June 27, 2016, in which the customer received $18,000.00 in damages after alleging that Nicholson engaged in the sale of unsuitable investments. On March 1, 2016, Nicholson was named in a customer dispute in which the customers requested $35,000.00 in damages after alleging…
Rick J. Sande, of Melville, New York, is subject to a pending customer dispute from March 8, 2016, in which the customer requested $80,000.00 in damages after alleging that Sande engaged in unsuitable trading and churning in the customer’s account, and committed a breach of fiduciary duty. According to Public Disclosure Records, Sande was also…
Shadi T. Barakat, of New York, New York, is subject to a pending customer dispute from October 19, 2015, in which a customer has requested $195,723.67 in damages after alleging that Barakat engaged in misrepresentations, and committed breach of fiduciary duty, negligence, and unauthorized and unsuitable transactions in the customer’s account. Barakat previously associated with…
Jonathan E. Rago, of Melville, New York, a stockbroker with Craig Scott Capital, LLC, is subject to a pending customer dispute from November 6, 2015, in which a customer requested $29,806.00 after alleging churning, and unsuitable investment recommendations. Public Disclosure records also reveal that on May 22, 2015, Rago was fined $7,500.00, and had his…
John R. Stevens, of Grand Junction, Colorado, is subject to several customer disputes. On February 18, 2016, Stevens became subject to a pending customer dispute, in which the customer requested $300,000.00 after alleging that Stevens had misrepresented aspects of a variable annuity, causing the customer to bear investment losses. On February 5, 2016, another customer…
Larry D. Freie, of Lincoln, Nebraska, a stockbroker with Ameritas Investment Corporation, is subject to a pending customer dispute from March 9, 2015, in which a customer alleged that Freie made unsuitable investment recommendations to the customer. This is not the first time that Freie has been subject to a customer dispute regarding unsuitable recommendations….
George P. Koulouris, of Manilus, New York, a stockbroker registered with KCD Financial, Inc., is subject to a pending customer dispute from August 10, 2015, in which a customer alleged that purchases made via Manilus in private placement investments were not suitable for the customer. Public disclosure records also reveal that Koulouris has been subject…
Marcello Lattuca, of Massapequa, New York, a stockbroker with NBC Securities, Inc., is subject to a pending customer dispute from March 15, 2016, in which the customer requested $109,078.00 after alleging that Lattuca did not fully disclose investment risks to the customer. The customer further alleged that given the customer’s risk objectives and investment objectives,…
Thomas J. Briguccia, Jr., of Ronkonkoma, New York, a stockbroker with K.C. Ward Financial, is subject to a pending customer dispute from May 13, 2016, in which a customer requested $100,000.00 in damages in connection with trading losses attributable to Briguccia’s misconduct. According to FINRA’s BrokerCheck, Briguccia has been subject to thirteen other disclosure incidents,…
Joseph F. Comiskey, Jr., of Ronkonkoma, New York, a stockbroker with K.C. Ward Financial, became subject to a pending customer dispute on July 20, 2016, in which the customer requested $450,000.00 in damages after alleging that Comiskey engaged in the speculative trading in the customer’s account. Public disclosure records also reveal that Joseph Comiskey, Jr….
Russel Leo Sadler, of Plymouth, Massachusetts, a stockbroker with LPL Financial, LLC, was fined $25,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity for twelve months after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2014039725301 (Sept….
Francine A. Lanaia, of Hauppauge, New York, a stockbroker with Meyers Associates, L.P., and formerly Alexander Capital, L.P., was named in regulatory action by The State of Montana’s Securities Division on August 2, 2016, in which Lanaia was alleged to have failed to supervise two registered representatives, Joseph Connelly and William Gennity. The two individuals,…
William C. Gennity, from Staten Island, New York, a stockbroker with First Standard Financial Company LLC, and previously registered with Alexander Capital, L.P., was named in regulatory action from Montana’s Securities Division, in which Gennity was alleged to have engaged in unauthorized and excessive trading, unsuitable investment recommendations, charging of excess fees, unauthorized use of…
Anthony Mastroianni, Jr., of New York, New York, a stockbroker with Meyers Associates, L.P., was named in a pending customer dispute, in which the customer has requested $2,000,000.00 in damages amid allegations against Mastroianni of breach of fiduciary duty, unsuitable investment recommendations, breach of contract, and churning of the customer’s account. Mastroianni is also subject…
Bryon E. Martinsen, of Northport, New York, a stockbroker with Centaurus Financial, Inc., was named in a customer dispute in which a customer is requesting $1,787,000.00 in damages after alleging that Martinsen sold the customer products that were unsuitable and had not been vetted with proper due diligence. According to FINRA BrokerCheck, Martinsen has also…
Christian J. Stoltz, of Forty Fort, Pennsylvania, a stockbroker with Centaurus Financial, Inc., was named in a pending customer dispute on August 8, 2016, in which a customer has requested $32,000.00 in damages after alleging Stoltz made unsuitable recommendations concerning annuities and the customer’s managed investment account. Public Disclosure records reveal that Stoltz has also…
Joseph M. Thurnherr, of New York, New York, a stockbroker with Meyers Associates, L.P., was named in a pending customer dispute on June 23, 2016, in which the customer has requested $93,624.00 in damages after alleging that Thurnherr made unsuitable investment recommendations and over-concentrated the customer’s investment accounts from February through November of 2015. Public…
Matthew A. Siliato, of New York, New York, a stockbroker with Meyers Associates, L.P., was named in a pending customer dispute on June 23, 2016, in which the customer requested $250,627.60 in damages amid allegations against Siliato of making unsuitable investment recommendations. Siliato has also been named in another pending customer dispute on December 28,…
Public disclosure records via FINRA’s BrokerCheck reveal that on July 26, 2016, Jeffrey E. Sigman, of Englewood, Colorado, was terminated by Neidiger, Tucker, Bruner, Inc. Apparently, the firm permitted Sigman to resign amid allegations of violating the firm’s policies regarding outside business activities. The firm indicated that it conducted an internal review into Sigman after…
Merrill Lynch, Pierce, Fenner & Smith Inc., headquartered in New York, New York, consented to a $10,000,000.00 fine by The Securities and Exchange Commission (SEC) in connection with an SEC Order containing findings that Merrill Lynch made misleading statements regarding costs pertaining to structured notes issued by Bank of America – Merrill Lynch’s parent. SEC…
Merrill Lynch, Pierce, Fenner & Smith Inc., headquartered in New York, New York, was fined $358,000,000.00, and issued a Cease and Desist Order by The Securities and Exchange Commission in connection with findings that Merrill Lynch failed to properly safeguard the clients’ assets from creditor claims, and improperly utilized investors’ funds in order to rake…
Jerry McCutchen, of Mobile, Alabama, a stockbroker for Berthel, Fisher & Company Services, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that McCutchen made unsuitable alternative investment recommendations. Letter of Acceptance, Waiver and Consent,…
Kevin J. Blaney, of Stamford, Connecticut, a stockbroker with Jefferies LLC, was fined $30,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made misrepresentations to customers in connection with fixed income securities. Letter of Acceptance, Waiver and Consent, No. 20160499622-01 (Sept. 1,…
TradeSpot Markets, Inc., headquartered in Davie, Florida, and Mark B. Beloyan (president, chief operating officer, and chief compliance officer) were censured by Financial Industry Regulatory Authority (FINRA) Department of Enforcement per an Order Accepting Offering of Settlement containing findings that the firm and Beloyan failed to effect compliant penny stock transactions, and failured to adequately…
John Batista Bocchino and Rafael Barela Jacinto, of New York, New York, stockbrokers with Morgan Stanley Smith Barney, were charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that the individuals engaged in material misrepresentations and omissions concerning bond investments, unauthorized activity in connection with such, and falsified firm records….
Robert M. Lyons, of Augusta, Georgia, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made unsuitable recommendations to customers. Letter of Acceptance, Waiver and Consent, No. 2014040668202 (Sept. 1, 2016). According to the AWC, Lyons made recommendations and subsequently…
Michael B. Inderlied, of New Woodstock, New York, a stockbroker with Adirondack Trading Group LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed an investigation into allegations of his unsuitable investment recommendations to customers. Letter of Acceptance, Waiver and…
Caldwell International Securities Group, headquartered in Fischer, Texas, along with the firm’s supervisory staff members (Greg Caldwell, Lennie Freiman, and Paul Jacobs) were censured and fined by Financial Industry Regulatory Authority (FINRA) per an Order Accepting Offer of Settlement containing findings that the firm and individuals committed, inter alia, unsuitable investment strategy recommendations, unsuitable exchange…
Conversion is a fancy name for stealing. James Michael Griegel, of Chicago, Illinois, a registered principal with Melvin Securities, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he converted pension funds for his own personal use. Letter of Acceptance, Waiver and Consent,…
William Fredrick Kerschbaumer, Jr., of Carrollton, Ohio, was fined $12,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he forged his firm customer’s signatures and made misrepresentations to customers and his firm concerning annuity terms. Letter of Acceptance, Waiver and Consent, No….
Joseph Michael Araiz, of New York, New York, the chief executive officer of Further Lane Securities, L.P., was fined $45,000.00 and suspended from associating with a Financial Industry Regulatory Authority in any principal capacity, and had his licensure revoked in connection with an Office of Hearing Officers’ Order Accepting Offer of Settlement containing allegations of…
Christopher B. Ariola, of Aliso Viejo, California, a stockbroker with Bay Mutual Financial, LLC, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Ariola made unsuitable recommendations to investors. Department of Enforcement v. Christopher B. Ariola, No. 2012034139101 (Aug. 25, 2016). According to the Complaint, between December of 2011…
Leigh Garber, of New Woodstock, New York, president of Ridgeway & Conger, Inc., was fined $15,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity per an Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that he failed to supervise mark-ups and unregistered securities sales….
Boenning & Scattergood, Inc., headquartered in West Conshohocken, Pennsylvania, was fined $100,000.00 and censured for, inter alia, failing to adequately supervise private securities transactions as well as consolidates reports. Letter of Acceptance, Waiver and Consent, No. 2014038906401 (Aug. 24, 2016). According to the AWC, between April 25, 2011, and March 13, 2014, a registered representative…
Kimberly Springsteen-Abbott, of Holiday, Florida, the chairman and chief executive officer of Commonwealth entities, including Commonwealth Funds, was fined $100,000.00 and barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity in connection with a FINRA National Adjudicatory Council Decision which affirmed findings that Springsteen-Abbott misappropriated investor funds. Department of…
Robert S. Gleason, Sr., of Owensboro, Kentucky, a stockbroker with Ross, Sinclaire & Associates, LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of his unauthorized trading in customer accounts. Letter of Acceptance, Waiver and…
Daniel John Meyers, of New Haven, Connecticut, a stockbroker with Morgan Stanley, was fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2015048045501 (Aug. 19, 2016)….
Craig D. Dima, of Ronkonkoma, New York, a stockbroker registered with K.C. Ward Financial, was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Dima made unauthorized trades in a customer’s account and fraudulent representations in connection with such. Department of Enforcement v. Craig David Dima, No. 2015046440701 (Aug. 18, 2016). According…
Financial West Group, headquartered in Westlake Village, California, was censured and fined $40,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm’s supervisory systems and procedures concerning the due diligence of private placements were inadequate. Letter of Acceptance, Waiver and Consent, No. 66483 (Aug. 16, 2016). According to the AWC, between October…
Devindra Sukhram, of McDonough, Georgia, a stockbroker with Cape Securities, was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in the unauthorized discretionary trading of customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014041613501 (Aug. 17, 2016). According to the…
Adam Denny Estes, of Bloomington, Indiana, a stockbroker with J.J.B. Hilliard, W.L. Lyons, LLC, was fined $15,000.00 and suspended for fifteen months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in private securities transactions and outside business activities, and made misstatements to…
Robert E. Heath, from Colorado Springs, Colorado, a registered representative with AXA Advisors, LLC, was fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in the unauthorized borrowing of customer funds. Letter of Acceptance, Waiver and Consent,…
Joey Cless Broussard, of Allen, Texas, a registered representative with Source Capital Group, Inc., was barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per a FINRA Office of Hearing Officers Default Decision containing findings that Broussard forged and falsified a document in connection with a customer’s investment. Department…
Timothy N. Payne, of New Woodstock, New York, a stockbroker with Adirondack Trading Group LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed an investigation into allegations of Payne’s unsuitable investment recommendations. Letter of Acceptance, Waiver and Consent, No. 2014040289802 (Sept….
Leonard V. Fox, Jr., of Marlton, New Jersey, a stockbroker with FSC Securities Corporation, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he failed to cooperate in a FINRA investigation into allegations of his misappropriation of customer funds. Letter of Acceptance, Waiver and Consent, No….
Neither a borrower nor a lender be. Ciro Gilbert Cavazos, of Chico, California, a stockbroker with Edward Jones, was fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member firm any capacity after consenting to findings that he engaged in the unauthorized borrowing of customer funds. Letter of…
Hal Irving Marcus, of Buffalo Grove, Illinois, a stockbroker with Citigroup Global Markets, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in the unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No….
Michael J. Barranco, of Montgomery, Alabama, a stockbroker with LPL Financial, LLC, was fined $20,000.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in the unauthorized participation of private securities transactions. Letter of Acceptance, Waiver and Consent,…
Paul George Liebzeit, of Pittsburgh, Pennsylvania, a stockbroker with LPL Financial, LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2014043011201 (Aug 11, 2016). According to…
Sigma Financial Corporation, headquartered in Ann Arbor, Michigan, was censured and fined $100,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that it overcharged customers concerning their purchases of unit investment trusts, and for the firm’s failure to implement adequate supervisory procedures pertaining to sales charge discounts to ensure customers received them. Letter…
Samuel Ryan McClain, of Boston, Massachusetts, a stockbroker with Northwestern Mutual Investment Services, LLC, was named in a FINRA Department of Enforcement Complaint alleging that McClain failed to comply with a FINRA investigation into allegations of McClain’s misconduct which consisted, inter alia, of outside business activities. Department of Enforcement v. Samuel Ryan McClain, No. 20150455320-02…
If you steal $2.3 million, it is probably best not to talk about it. Robert P. DePalo, of Greenwich, Connecticut, a stockbroker with Arjent, LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity in connection with a FINRA Hearing Panel Decision containing findings that DePalo obstructed a FINRA…
Thomas J. Brenner, Jr., of Orrville, Ohio, a stockbroker with First American Securities, Inc., was fined $30,000.00 and suspended for sixteen months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he made misrepresentations and unsuitable recommendations with regard to private placement transactions. Letter of…
Steven Paul Colacurcio, of Boynton Beach, Florida, a stockbroker with Dawson James Securities, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in the unauthorized discretionary trading of customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014043592102…
Patrick William Lofaro, of Melville, New York, a stockbroker with Rockwell Global Capital LLC, was fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in the unauthorized discretionary trading in a customer account. Letter of Acceptance, Waiver and Consent, No….
Jonathan J. Casiano, of Arlington, Texas, a stockbroker with J.P. Morgan Securities LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he misappropriated funds from firm customers. Letter of Acceptance, Waiver and Consent, No. 2016050795201 (Aug 18, 2016). According to the AWC,…
Henry Liaw, of Clayton, Missouri, a stockbroker with AXA Advisors, LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2014042365201 (Aug 8, 2016). According to…
UBS Financial Services, Inc., was censured and fined $250,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm overcharged customers who purchased mutual funds, and failed to create and preserve supervisory processes to ensure that customers who were eligible for such discounts had received them. Letter of Acceptance, Waiver and Consent,…
Brian James Egan, of Laguna Niguel, California, a stockbroker with Independent Financial Group, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he failed to disclose outside trading accounts, made misrepresentations to his firm, and obstructed a FINRA investigation into allegations of his misconduct. Letter…
Landon L. Williams, of Jacksonville, Florida, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith Incorporated, was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Williams had made misrepresentations to firm customers concerning securities transactions. Department of Enforcement v. Williams, No. 2014042524301 (Aug 4, 2016). According to the Complaint, from March…
KCD Financial, headquartered in De Pere, Wisconsin, was censured and fined $73,000.00 by Financial Industry Regulatory Authority (FINRA) per a National Adjudicatory Council Decision stating that the firm engaged in the sales of unregistered securities and failed to supervise staff who sold such unregistered securities. Department of Enforcement v. KCD Financial, Inc., No. 2011025851501 (Aug…
Steven M. Wisniewski, of Phoenixville, Pennsylvania, a stockbroker with Cambridge Investment Research, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in all capacities after consenting to findings that he forged customer signatures on accounts documents. Letter of Acceptance, Waiver and Consent, No. 2015044110101 (July 22, 2016). According…
ProEquities, Inc., headquartered in Birmingham, Alabama, was censured and fined $200,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to supervise non-traditional exchange-traded funds and variable annuities. Letter of Acceptance, Waiver and Consent, No. 2014039418801 (Aug 8, 2016). According to the AWC, from January of 2008 through April of…
Legend Securities Stockbroker Charged With Fraud. Hank M. Werner, of New York, New York, a stockbroker associated with Liberty Partners Financial Services, LLC, and later Legend Securities, Inc., was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Werner engaged in securities fraud, made unsuitable investment recommendations, and engaged in excessive amounts…
Robert Tuffy, of East Brunswick, New Jersey, a stockbroker with Wells Fargo Advisors, LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in the unauthorized trading in a customer account. Letter of Acceptance, Waiver and Consent, No….
Christopher Lawrence Wacker, of Brookfield, Wisconsin, a stockbroker with Park Avenue Securities was fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he had made misrepresentations concerning trading authority in customer accounts. Letter of Acceptance, Waiver and Consent, No….
Daniel Terry Fischer, of New York, New York, a stockbroker registered with Four Points Capital Partners LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in the unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver…
Seth David Lampman, of Osceola, Iowa, a stockbroker for Edward Jones, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014042505601 (July 13, 2016). According…
James Earl Mahan, of Braunfels, Texas, a stockbroker with J.P. Morgan Securities LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he obstructed a FINRA investigation into allegations of his unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2015047115101 (July 25,…
Prudential Annuities Distributors, Inc., headquartered in Shelton, Connecticut, was censured and fined $950,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had not identified and prevented misappropriation from a firm customer, and failed to properly implement its supervisory procedures to detect theft by former LPLFinancial broke, Travis A. Wetzel. Letter…
Paul S. Plemenos of Sparta, New Jersey, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith Incorporated, was fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized trading in customer accounts. Letter of Acceptance, Waiver and Consent, No….
H.D. Vest Investment Securities, Inc., headquartered in Irving, Texas, was censured and fined $100,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to adequately supervise variable annuity transactions, and failed to effectively utilize surveillance procedures to detect rates of annuity exchanges. According to the AWC, from May of 2010…
Lawrence Randolph Roberson, of Detroit, Michigan, a stockbroker with Capital City Securities, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he made fraudulent misrepresentations and omissions concerning the sale of a bond investment to a customer. Letter of Acceptance, Waiver…
Summit Brokerage Services, Inc., headquartered in Boca Raton, Florida, was censured and fined $75,000.00 by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that it overcharged customers regarding unit investment trust purchases, and failed to implement adequate supervisory procedures to prevent the overcharging of customers. Letter of Acceptance, Waiver and Consent, No. 2014041840301…
Laidlaw & Company LTD., headquartered in London, England, was censured and fined $10,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had charged customers with excessive commissions on equity transactions. Letter of Acceptance, Waiver and Consent, No. 2014040622201 (July 21, 2016). According to the AWC, from April 2013 through June…
David O. Braeger, of Irvine California, a stockbroker with Newport Coast Securities, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Braeger converted customer funds and made misrepresentations concerning investments. Department of Enforcement v. David O. Braeger, No. 2015045456401 (July 20, 2016). According to the Complaint, customers…
Another bucketshop broker bites the dust. John Buonocore, of New York, New York, a stockbroker with Meyers Associates, L.P., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he did not cooperate in a FINRA investigation into allegations of Buonocore’s trading abnormalities…
Gary Delfino, of Bedminster, New Jersey, a stockbroker with Ameriprise Financial Services, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2015047790401 (July…
Dustin Cain Walsh, of Saint Louis, Missouri, a stockbroker with Scottrade, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of Walsh’s unauthorized outside business activities. Letter of Acceptance, Waiver and Consent,…
Richard William Lunn Martin, of Penang, Malaysia, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Martin made unsuitable recommendations to customers, and false and misleading statements to customers regarding investments. Department of Enforcement v. Richard William Lunn Martin, No. 2013035817701 (June 27, 2016). According to the Complaint, from…
Robert G. Simons, of Brooklyn, Connecticut, a stockbroker with Center Street Securities, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014041298501 (June 1, 2016)….
Craig Scott Capital, LLC, headquartered in Uniondale, New York, along with owners Craig Scott Taddonio and Brent Morgan Porges, were charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that the firm and its owners had engaged in excessive and unsuitable trading, fraudulent churning, and other supervisory failures. Department of…
David J. Sullivan of Boston, Massachusetts, a registered representative with J.P. Morgan Securities LLC, was fined $5,000 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for fifteen days after consenting to findings that he engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver and Consent No….
The Guiliano Law Group, P.C. is investigating claims against securities broker-dealers in connection with the sale and recommendation of Business Development Companies or BDCs. Citing the “high commissions and fees,” the Financial Industry Regulatory Authority or FINRA claims that “many of the firms that distributed nontraded REITs are now turning to nontraded BDCs,” BDCs arre frought…
Robert W. Baird, headquartered in Milwaukee, Wisconsin, as well as Rolf Parker Griffith III, a stockbroker and supervisor with Robert W. Baird, were sanctioned by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm and Griffith failed to properly supervise a registered representative’s misuse of customer funds. Letter of Acceptance, Waiver and…
Brokers International Financial Services, LLC, headquartered in Panora, Iowa, was censured and fined $45,000.00 after consenting to findings that the firm failed to fully inform investors regarding variable annuities prior to investment, and authorized solicitation of purchases of annuities prior to ensuring suitability. Letter of Acceptance, Waiver and Consent, No. 2013038934401 (July 26, 2016). According…
Alexander P. Brown, III, of Baltimore, Maryland, a stockbroker with Chaplin Davis, was fined $2,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2015047883501 (July 22, 2016)….
J. Randall Gladden of El Cajon, California, a stockbroker with Securities Equity Group, was fined $15,000.00 and suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that Gladden had engaged in unauthorized private securities…
First Financial Equity Corporation, headquartered in Scottsdale, Arizona, as well as the firm’s Chief Compliance Officer, Melissa Strouse, was named in a Financial Industry Regulatory Authority (FINRA) Department of Enforcement Complaint alleging failure to supervise various aspects of the firm’s operations, including commissions charged by the firm’s staff. Department of Enforcement v. First Financial Equity…
William Norris Jordan Jr., of Philadelphia, Pennsylvania, a stockbroker with Kildare Capital, Inc., was named in a Complaint by Financial Industry Regulatory Authority (FINRA) Department of Enforcement alleging that Jordan partook in a deceptive and fraudulent scheme concerning round trips of municipal securities, charged customers excessive prices, and provided false information to his firm as…
Winston Wade Turner of Sarasota, Florida, a registered representative with Pruco Securities, LLC, and MetLife Securities, Inc., was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per a FINRA Office of Hearing Officers Default Decision containing findings that Turner committed fraud pertaining to customers’ variable annuity purchases, partook in unauthorized…
James McCormick, Jr., of Harrisonburg, Virginia, a stockbroker with Wells Fargo Advisors, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation into allegations stemming from customer complaints against McCormick. Letter of Acceptance, Waiver and Consent,…
George A. Zedan of Glendale, California, a stockbroker with LPL Financial LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Office of Hearing Officers’ Order Accepting Offer of Settlement containing allegations that Zedan converted customer funds and failed to cooperate in a FINRA investigation into Zedan’s…
FCG Advisors LLC, headquartered in Chatham, New Jersey, was censured and fined $50,000.00 by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm sold securities that were not registered. Letter of Acceptance, Waiver and Consent, No. 2012030676501 (June 28, 2016). According to the AWC, from August 2011 through October 2011, the…
Securities America, Inc., headquartered in Lavista, Nevada, was censured by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that it overcharged customers regarding mutual funds purchases, and failed to implement adequate supervisory procedures to prevent the overcharging of customers. Letter of Acceptance, Waiver and Consent, No. 2015047269801(July 29, 2016). According to the AWC,…
Nathan Silva, of Omaha, Nebraska, a stockbroker with Ameritas Investment Corp., was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of misconduct against him. Letter of Acceptance, Waiver and Consent, No. 20140426897-01 (July 8, 2016). According to…
Kenneth Daley, of Garden City, New York, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith Incorporated, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he concealed customer funds and made an unsuitable investment recommendation. Letter of Acceptance, Waiver and Consent,…
David M. Joyce, a municipal securities trader for Kildare Capital, Inc., was fined $25,000.00 and suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unlawful pre-arranged round trip transactions. Letter of Acceptance, Waiver and Consent, No. 20120317482-02 (June…
Francisco G. Hervella, of Miami, Florida, a stockbroker with Invex Inc., was fined $50,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity for two years after consenting to findings that he engaged in unauthorized outside business activities as well as unauthorized private securities transactions. Letter of Acceptance, Waiver…
John A. Coleman, of Pittsburgh, Pennsylvania, a stockbroker for Geneos Wealth Management, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate in a FINRA investigation into allegations of non-disclosure of outside business activities. Letter of Acceptance, Waiver and…
Bernard G. McGee, of Cazenovia, New York, a stockbroker with Cadaret, Grant & Co., Inc. was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per a National Adjudicatory Council Decision containing findings that McGee engaged in fraud, unsuitable recommendations, and unauthorized outside business activities. Department of Enforcement v….
Nathan D. Bartow, of Barberton, Ohio, a stockbroker with Fifth Third Securities, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of mismanagement and conversion of customer funds. Letter of Acceptance, Waiver and Consent, No….
Darrin B. Farrow, of Rocky River, Ohio, a registered representative with Royal Alliance Associates, Inc., was fined $25,000.00 and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in several unauthorized private securities transactions. Letter of Acceptance, Waiver and…
Ameriprise Financial Services, headquartered in Minneapolis, Minnesota, was censured and fined $100,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to create and adequately maintain a supervisory system to identify and prevent unsuitable trading in closed end funds. Letter of Acceptance, Waiver and Consent, No. 2014039843501 (June 20, 2016)….
Newbridge Securities Corporation, headquartered in Boca Raton, Florida, was censured and fined $115,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to apply sales charge discounts to eligible customers’ purchases of unit investment trusts (UITs); and failed to develop and manage supervisory practices and protocol to make sure eligible…
Edward Manges, of Philadelphia, Pennsylvania, a municipal securities broker with Kildare Capital, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in a fraudulent trading scheme, and falsified statements to FINRA in the course of an investigation into his misconduct….
Douglas Simanski, of Altoona, Pennsylvania, a registered representative with NEXT Financial Group, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he failed to cooperate in a FINRA investigation into allegations that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2016049621301…
Arthur Espinoza, of Vero Beach, FL, a stockbroker with Freedom Investors Corporation, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in outside business activities, misrepresented documents to his firm, and failed to cooperate in a FINRA investigation into his misconduct….
Glenn Robert King, of Shrewsbury, New Jersey, a stockbroker formerly with Royal Alliance, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he fraudulently omitted and misrepresented material facts to investors, prompted excessive and unsuitable transactions, and committed unauthorized discretionary trading. Department of…
Brandon D. Gioffre, of New York, New York, a stockbroker with Constellation Wealth Advisors LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2015046448701 (June 22, 2016)….
Andres F. Talero, of Miami, Florida, a stockbroker with Invex, Inc., was fined $50,000.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in outside business activities and private securities transactions. According to the AWC, in June 29,…
Shannon Marie Rowland, of Tempe, Arizona, a registered representative with State Farm Insurance Co., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she converted customers’ insurance premiums. Letter of Acceptance, Waiver and Consent, No. 2014042783901 (June 8, 2016). According to the…
WFG Investments, Inc., headquartered in Dallas, Texas, was censured and fined $65,000.00 by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to apply sales charge discounts to eligible customers’ purchases of unit investment trusts (UITs); and failed to develop and manage supervisory practices and protocol to make sure eligible…
Dion R. Padilla, of San Antonio, Texas, a stockbroker with Next Financial Group, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that that Padilla engaged in willful securities fraud and effected an unauthorized annuity purchase. Department of Enforcement v. Padilla, No. 2014040362001 (June 9, 2016). According to…
Oppenheimer & Co., Inc., headquartered in New York, New York, was censured and fined $2,250,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to properly supervise exchange traded funds. Letter of Acceptance, Waiver and Consent, No. 2012034556901 (June 7, 2016). According to the AWC, from August 4, 2009 through September…
David C. Cannata, of Uniondale, New York, a stockbroker with Craig Scott Capital, LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per a Default Decision containing findings that he engaged in excessive trading and churning, and failed to cooperate in a FINRA investigation into his misconduct. Department…
Dennis Mark Adam Merritt, of Clearwater, Florida, a stockbroker with Wells Fargo, was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity pursuant to an Order Accepting Offer of Settlement containing findings that Merritt engaged in private securities transactions, made unsuitable recommendations to investors, and falsified information to Wells Fargo…
Armando Fernandez, of Miami Beach, Florida, a stockbroker with Morgan Stanley & Co. Incorporated, was fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized trading and mismarked order tickets. Letter of Acceptance, Waiver and Consent, No. 2013038283001 (May…
Merrill Lynch, Pierce Fenner & Smith, Inc. headquartered in New York, New York, was censured and fined $5,000,000.00 by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to properly disclose costs associated with strategic return notes. Letter of Acceptance, Waiver and Consent, No. 2012032967901 (June 23, 2016). According to the…
Richard Gomez, of New York, New York, a stockbroker with Legend Securities, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity in connection with a Hearing Panel Decision containing findings that Gomez engaged in private securities transactions, and made unsuitable recommendations to investors. Department of Enforcement…
Gary Donovan of Newark, Ohio, a stockbroker with Sagepoint Financial, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that engaged in stock price manipulation. Letter of Acceptance, Waiver and Consent, No. 2015045600101 (May 27, 2016). According to the AWC, on August 28, 2014, Donovan had effected an…
Lawson Financial Corporation, as well as Robert Lawson (the firm’s president, chief compliance officer, and chief executive officer), and Pamela Lawson (the firm’s owner and chief operating officer) were charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging securities fraud in the sale municipal revenue bonds. Department of Enforcement v….
Daniel S. Miller, of San Francisco, California, a stockbroker with Growth Capital, was fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2015044394701 (May 26,…
Jim Jinkook Seol, of Irvine, California, a stockbroker with Ameriprise Financial Services, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging Seol engaged in unauthorized outside business activities, private securities transactions, and made false statements to his firm concerning his conduct. Department of Enforcement v. Seol, No. 201403983910101…
Francisco Javier Sumavielle, of New York, New York, a stockbroker with Murex Capital, LLC, was fined $12,500.00 and suspended for seven months from associating with a Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized borrowing from customers. Letter of Acceptance, Waiver and Consent, No….
James P. Scullin, of Coral Gables, Florida, a stockbroker with UBS Financial Services Inc., was fined $15,000.00 and suspended for nine-months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver and Consent, No. 2014043554601 (May…
David Newman, of Duncan, Oklahoma, a stockbroker with First Western Securities, was fined $15,000.00 and suspended for fifteen months from associating with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2015046649901 (May 20, 2016). According to…
Edward R. Segur, III, of New York, New York, was fined $7,500.00 and suspended for thirty days from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he opened unauthorized securities accounts and engaged in unauthorized trading. Letter of Acceptance, Waiver and Consent, No. 2015044591701 (May…
Lizabeth Gotuaco Ty of Houston, Texas, a stockbroker with Park Avenue Securities LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she obstructed a FINRA investigation into allegations of her involvement in unregistered securities sales. Letter of Acceptance, Waiver and Consent, No….
Robert J. Kerrigan, of Scottsdale, Arizona, a stockbroker with First Financial Equity Corporation, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into his alleged misconduct. Letter of Acceptance, Waiver and Consent, No. 2015047151401 (May 11, 2016)….
Miguel Hernandez, of El Paso, Texas, a stockbroker with Thrivent Investment Management, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2015045623201 (Apr. 25, 2016). According to the AWC, Hernandez…
Gary Lee Rathbun and Douglas Scott Miller, both of Toledo Ohio, and stockbrokers for Triad Advisors, Inc., were permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after engaging in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2014041919401 (May 17, 2016). According to the AWC,…
Steven A. Larson, of Saint Louis, Missouri, a stockbroker with Oakbridge Financial Services, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Larson made material omissions and false statements to clients concerning investments. Department of Enforcement v. Larson, No. 2014039174202 (May 11, 2016). According to the Complaint, Larson…
Kovack Securities, Inc., headquartered in Fort Lauderdale, Florida, was censured and fined $125,000.00 by the Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to eligible customers’ purchases of unit investment trusts, in addition to failing to develop and manage the requisite supervisory practices to ensure that eligible customers received sales charge…
Justin K. Wine, of Cherry Hill, New Jersey, a stockbroker with LPL Financial LLC, was fined $12,500.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2012033934201(May…
Lance J. Ziesemer, of Wayzata, Minnesota, a stockbroker for Feltl & Company, was fined $7,500.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made unsuitable recommendations to customers. Letter of Acceptance, Waiver and Consent, No. 2013036524903 (May 12, 2016)….
Paul Anthony Akre, of Waukesha, Wisconsin, a stockbroker with Wells Fargo Advisors, LLC, was fined $15,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized outside business activities, a private securities transaction, and improper loans with customers….
Equinox Securities, based in Redland, California, was expelled as a Financial Industry Regulatory Authority (FINRA) member firm, and the firm’s chief executive officer, Stephen Michael Oliveira, was permanently barred from associating with any FINRA member firm in a principal capacity, in connection with an Order Accepting Offer of Settlement containing findings that Equinox excessively traded…
Eric Kuchel, of Brea, California, a stockbroker with Crown Capital Securities, L.P., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member per a Default Decision from FINRA’s Department of Enforcement containing findings that Brea failed to cooperate in a FINRA investigation into Kuchel’s alleged private securities transactions. Department of Enforcement v….
Terry L. Haggerty, of Kenosha, Wisconsin, president and chief executive officer of Penvest Securities, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in securities fraud; and failed to supervise his and his firm’s trading conduct to prevent fraudulent trading…
Peyton Nelson Jackson, of New York, New York, was fined $20,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2012032095801 (Apr. 28, 2016). According to the AWC, FINRA launched…
World Equity Group, Inc., headquartered in Arlington Heights, Illinois, was fined $50,000.00 and censured by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to supervise unsuitable and excessive equity trading. Letter of Acceptance, Waiver and Consent, No. 2014039231401 (Apr. 25, 2016). According to the AWC, from November 2009 through September…
Steven Silver, of New York, New York, a stockbroker with Casimir Capital L.P., was fined $10,000.00 and suspended for six months from associating with a Financial Industry Regulatory Authority (FINRA) member in any capacity, and disgorged of $40,000.00 in connection with an Order Accepting Offer of Settlement containing findings that Silver engaged in unauthorized private…
Michael J. Russo, of Melville, New York, a stockbroker with Global Arena Capital Corporation, was fined $35,000.00, and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he sent false and/or misleading statements to prospective customers regarding investment opportunities; and also…
Christopher J. Pierce, of Exton, Pennsylvania, a representative with Wells Fargo Advisors, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that converted customer funds. According to the AWC, on March 1, 2016, Pierce had issued a Wells Fargo client a debit card,…
William H. Jennings II, of New York, New York, a securities principal with Jefferies LLC, was fined $30,00.00 and suspended in a principal capacity for three months, and had his principal license revoked after consenting to findings that he failed to supervise representatives who made misrepresentations to firm customers. Letter of Acceptance, Waiver and Consent,…
Jonothon M. Lieberman, of Farmingdale, New York, a stockbroker with Rockwell Global Capital, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into Lieberman’s alleged sales practice violations. Letter of Acceptance, Waiver and Consent, No. Jonothon…
John R. McKinstry Jr., of Saint Louis, Missouri, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he failed to cooperate in an investigation into allegations of whether McKinstry engaged in unsuitable recommendations and unauthorized lending agreements with customers. Letter of Acceptance,…
MetLife Securities, Inc., headquartered in New York, New York, was censured and fined $20,000,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm made negligent omissions and misrepresentations concerning annuity products, and failed to supervise annuity transactions. Letter of Acceptance, Waiver and Consent, No. 20140408700001 (May 3, 2016). According to the…
David Michael Miller, of Columbus, Ohio, a stockbroker with Huntingdon Investment Company, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per an Office of Hearing Officers Default Decision containing findings that Miller engaged in unsuitable recommendations and negligent misrepresentations concerning customer accounts. Department of Enforcement v….
Robert Turpin, of Scottsdale, Arizona, a stockbroker with Source Capital Group, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he failed to cooperate in a FINRA investigation into allegations of his private securities transactions. Letter of Acceptance, Waiver and Consent,…
Feltl & Company Corporation, headquartered in Minneapolis, Florida, was censured and fined $250,000.00 by the Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to eligible customers’ purchases of unit investment trusts; for failing to develop and manage the requisite supervisory practices to ensure eligible customers received sales charge discounts on UIT…
INVEST Financial Corporation, headquartered in Tampa, Florida, was censured and fined $175,000.00 by the Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to eligible customers’ purchases of unit investment trusts; and for failing to develop and manage the appropriate supervisory practices to ensure eligible customers received sales charge discounts on UIT…
John S. Hudnall, of San Francisco, California, a stockbroker with U.S. Bancorp Investments and Bancwest Investments Services, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Hudnall engaged in unauthorized private securities transactions, unsuitable recommendations, and made false representations to FINRA regarding his misconduct. Department of Enforcement…
Brett W. Burgesser, of Orlando, Florida, a stockbroker with Wells Fargo Advisors, LLC, was fined $5,000.00 and suspended for sixty-days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in the unsuitable switching of mutual funds in customer accounts. Letter of Acceptance, Waiver and…
In July 2012, or in legal terms, a long time ago, at a place, not so far away, Redlands, California, a stockbroker, Chris B. Palkowitsh, of Equinox Securities, Inc. was charged by FINRA and thereaftyer terminated by his employer for doing bad things to his customers, including churning the daylights out of his customer accounts, in among…
Jeffrey C. Borneman, of Lancaster, Kentucky, a stockbroker with Cambridge Investment Research, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in an unauthorized private securities transaction. Letter of Acceptance, Waiver and Consent, No. 2015044368901 (Apr. 22, 2016). According…
Frank John Capuano, of Holyoke, Massachusetts, a stockbroker with Royal Alliance Associates, Inc., was fined $10,000.00 and suspended for a year from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2015046273001…
Sharon Fall, of Annapolis, Maryland, a stockbroker with LPL Financial LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she failed to cooperate in a FINRA investigation into allegations that she engaged in the unauthorized borrowing of funds from firm customers….
Timothy Francis Dufresne, of Bamberg, South Carolina, a stockbroker with SagePoint Financial, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2016049412601 (Apr. 8, 2016). According to the AWC, between October…
SM Imaze Hasnain, of Roseville, California, a stockbroker with State Farm VP Management Corp, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of his misappropriation of customer funds and acceptance of unauthorized loans from customers….
Apostolos Nicholas Papadea, of Columbia, South Carolina, a registered representative with Wells Fargo Advisors, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he engaged in unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2015048044301 (Apr. 19, 2016)….
Gerarld Fagnant, of Leominster, Massachusetts, a stockbroker with LPL Financial LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he accepted unauthorized loans from frim customers, and made false statements on his firm’s compliance questionnaires regarding such. Letter of Acceptance, Waiver…
Gwendolyn M. Berry, an employee with Next Financial Group, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she failed to cooperate with a FINRA investigation into allegations that she misappropriated customer assets. Letter of Acceptance, Waiver and Consent, No. 2015047059701…
Multiple Financial Industry Regulatory Authority (FINRA) member broker dealers, including Robert W. Baird & Co, Inc., BB&T Securities, LLC., U.S. Bancorp Investments, Inc., Fifth Third Securities, Inc., and PNC Investments LLC, were recently censured and ordered to pay restitution to customers after consenting to findings that the firms’ overcharged customers in mutual funds purchases, and…
Scott Muirhead, of Jacksonville, Florida, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that Muirhead failed to comply with a FINRA investigation. Letter of Acceptance, Waiver and Consent, No. 20150447853-01 (Apr. 19,…
Bruce William McNabb, of San Antonio, Texas, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith, Inc., was fined $50,000.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in an unauthorized private securities transaction. Letter of Acceptance,…
Ka Kiertonkaysy Lor, of Sacramento, California, a registered representative with Farmers Financial Solutions, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that she converted customers’ funds. Department of Enforcement v. Lor, No. 2014041073501 (Apr. 7, 2016). According to the Complaint, in October 2013, Lor, an insurance agent who…
RBC Capital Markets LLC, headquartered in New York, New York, was censured and fined $225,000.00 by the Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to eligible customers’ purchases of unit investment trusts; and for failing to develop and manage the requisite supervisory practices to ensure eligible customers received sales charge…
C.L. King and Associates, Inc., headquartered in Albany, New York, along with the firm’s chief executive officer, Gregg Alan Miller, were charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint containing allegations that the firm and Miller engaged in the improper redemption of death put investments, and failed to develop and…
Mark Peter Koestner, of Naples, Florida, a stockbroker with Wells Fargo Advisors, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and…
Leonard Allen Goldberg, of Palm Springs, California, a stockbroker with Newport Coast Securities, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Order Accepting Offer of Settlement containing findings that Goldberg engaged in unsuitable and fraudulent trading of funds in customer accounts. Department of Enforcement…
As securities lawyers generally representing investors before the Financial Industry Regulatory Authority in cases against stockbrokers and financial institutions for fraud in connection with the sale of defective securities, or defective financial advice, we always inform our clients that they need to pay special attention to any notice regarding the pendency or settlement of any…
This morning I received an e-mail from Chrystal Loyer of the FINRA Office of Dispute Resolution stating that she was from FINRA’s Case Administration Department and was checking on the status of the motion to vacate an Arbitration Award rendered by the Financial Industry Regulatory Authority in Reeve v. Sky Capital LLC and Ross Mandell…
Christopher Charles Burtraw, of Lake Wood, Colorado, a stockbroker with J.P. Turner & Company LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate in a FINRA investigation into allegations that Burtraw engaged in the “unauthorized borrowing” of multiple…
George Dahl, of New York, New York, a stockbroker with Newport Coast Securities, was fined $20,000.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized outside business activities; placed unauthorized trades in a customer’s account; and…
Billy Wayne Allen, of Bentonville, Arkansas, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate in a FINRA investigation into his unauthorized solicitation and receipt of loans from customers….
Triad Advisors LLC, headquartered in Norcross, Georgia, was censured and fined $125,000.00 by Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to eligible customers’ purchases of unit investment trusts; and failed to develop and adequately implement supervisory policies and procedures to ensure that such customers received sales charge discounts on all…
Kenneth Lynn Miller, of Greeneville, Tennessee, a registered representative with FTB Advisors, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 20160490980-01 (Mar….
Jorge Gonzalez, of Closter, New Jersey, a stockbroker with Wells Fargo Advisors, LLC and branch-manager for Wells Fargo Advisor’s affiliate banking company, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he converted customer funds. Letter of Acceptance, Waiver and Consent, No….
John L. Shockey, of Shreveport, Louisiana, a stockbroker with Merrill Lynch, Pierce, Fenner & Smith, Inc., was fined $15,000.00; disgorged of $70,070.00; and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in the participation of multiple unauthorized private…
David Randall Lockey, of Dallas, Texas, a stockbroker with SWS Financial Services, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Lockey prompted unsuitable switching and trading of investments; while also falsifying forms pertaining to customer accounts. Department of Enforcement v. Lockey, No. 2013034954001 (Mar. 30, 2016)….
Justin L. Ferguson, of Columbus, Georgia, a stockbroker for Country Capital Management Company, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he misappropriated customer funds. Letter of Acceptance, Waiver and Consent, No. 2016048699301 (Mar. 15, 2016). According to the AWC, on January…
Kevin J. Kuhlow, of Los Gatos, California, a stockbroker with LPL Financial LLC, was permanently barred from associating with any Financial Industry. 2016048430801 (Mar. 16, 2016). According to the AWC, LPL informed FINRA that it terminated Kuhlow on March 3, 2016, amid allegations of Kuhlow’s conduct of directing LPL’s customers to unapproved investments or selling away. FINRA…
Lance E. Slater, of Mt. Laurel, New Jersey, a stockbroker with Morgan Stanley, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he failed to cooperate in a FINRA investigation into allegations of unauthorized borrowing of funds from a firm customer. Letter of Acceptance, Waiver and Consent,…
Edward Beyn, of Syosset, New York, a stockbroker with Craig Scott Capital LLC, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Beyn engaged in excessive trading or churning of his firm’s customers’ accounts. Department of Enforcement v. Beyn, No. 2015044823502 (Mar. 16, 2016). According to the Complaint,…
Steven D. Ridgley, of Louisville, Kentucky, a stockbroker with Waddell & Reed, was fined $10,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014043025703…
Lombard Securities Inc., headquartered in Baltimore, Maryland, was censured and fined $50,000.00 by Financial Industry Regulatory Authority (FINRA) pursuant to an Order Accepting Offer of Settlement containing findings that the firm committed supervisory violations pertaining to mutual fund switches, uniform investment trusts (UITs), and non-traditional exchange traded funds (ETFs); and failed to provide customers with…
Alfred K. Chan, of Oakland, California, a stockbroker with Signator Investors, Inc., was fined $10,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized outside business activities, and distributed unapproved and unbalanced sales materials to prospective customers….
Christopher J. Elliott, of Washington, District of Columbia, a stockbroker with Infinex Securities, Inc., was fined $7,500.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged customers in unsuitable recommendations and acted with unauthorized discretion in customers’ accounts. Letter…
Most stockbrokers get barred for failure to cooperate, but not this one. Jeffrey E. Rodgers, of Bend, Oregon, a stockbroker with Morgan Stanley, was suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Order Accepting Offer of Settlement containing findings that Rodgers engaged in unauthorized…
Brett I. Friedberg, of New York, New York, a stockbroker with HFP Capital Markets LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per an Extended Hearing Panel Decision containing findings that Friedberg made unsuitable securities recommendations and negligently misrepresented information to customers. Department of Enforcement…
Giustino Destefano, of Williamsville, New York, a stockbroker with Merrill Lynch, was fined $10,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized discretionary trading and mismarked customers’ order tickets as unsolicited. Letter of Acceptance, Waiver and…
Further Lane Securities, L.P., stockbroker James Gabriel Collard, and Chief Executive Officer Joseph Michal Araiz, all of Boerne, Texas, were named in a Complaint containing allegations of excessive markups pertaining to corporate bond transactions and related supervisory failures. Department of Enforcement v. Collard et al., No. 20120342425-01-01- (Mar. 11, 2016). Further. according to the Complaint,…
Christopher Thomas Tolmacs of Portage Michigan, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that Tolmacs engaged in unauthorized transactions with customers, made misleading statements in connection with such, and potentially converted customer…
Alicia M. Moe, of Woodland Hills, California, a stockbroker with UnionBanc Investment Services, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that she failed to cooperate in a FINRA investigation into allegations that she may have committed the conversion of customer funds….
Robert Kevin Connors, of New York, New York, a stockbroker with Gilford Securities Incorporated, was fined $10,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions or selling away and unauthorized borrowing from a…
Harold Joseph Petro, of Indianapolis, Indiana, a stockbroker with Merrill Lynch, was fined $15,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014040640101 (Mar….
Jeffrey S. Ingros, of Beaver, Pennsylvania, a stockbroker with Raymond James Financial Services, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate in a FINRA investigation into allegations that he engaged in unauthorized loans and outside business activities….
Lev Slootsky, of New York, New York, a stockbroker with Goldman, Sachs & Co., was fined $15,000.00 and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized private securities transactions and outside business activities. Letter of Acceptance,…
Matthew Edward O’Callaghan, of New York, New York, a stockbroker with Odeon Capital Group LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had failed to cooperate in a FINRA investigation into allegations that O’Callaghan stole customer funds. Letter of Acceptance, Waiver…
Thomas P. Schober, of Westborough, Massachusetts, a stockbroker with SII Investments, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he made unsuitable recommendations to customers and attempted to conceal his misconduct to his firm. Letter of Acceptance, Waiver and Consent, No. 2015044007001 (Mar. 3,…
Robert O’Keef, of Milwaukee, Wisconsin, a stockbroker with RBC Capital Markets, LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014040938602 (Feb. 23,…
Kenneth J. Mathieson, of New York, New York, a stockbroker with Morgan Stanley, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Mathieson engaged in private securities transactions, outside business activities, and false compliance certifications. Department of Enforcement v. Mathieson, No. 2014040876001 (Mar. 3, 2016). According to the Complaint,…
Derek Prater, of Baytown, Texas, a stockbroker with Edward D. Jones & Co., L.P., was fined $17,500.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized trades in customer accounts; and misled his firm in the course…
Winston Wade Turner, of Sarasota, Florida, a registered representative with Pruco Securities, LLC, and MetLife Securities, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Tuner committed fraud in connection with customers’ variable annuity purchases, participated in unauthorized private securities transactions, and failed to cooperate with a…
David Joseph Escarcega, of Phoenix, Arizona, a stockbroker with Center Street Securities, Inc., was barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity in connection with a FINRA Office of Hearing Officers Extended Hearing Panel Decision containing findings that Escarcega communicated misleading and materially false statements to customers, and…
Bahram Mirhashemi, of Irvine, California, a stockbroker registered with Accelerated Capital Group, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had engaged in unauthorized and excessive trading, churning, and unsuitable recommendations. Letter of Acceptance, Waiver and Consent, No. 2012033566201 (Feb….
Robert G. Stein, of Worcester, Massachusetts, a stockbroker with Capital Securities Management, was fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made unsuitable recommendations and prompted unsuitable sales of reverse convertible notes. Letter of Acceptance, Waiver and…
The financial sector has always taken a cost benefit approach to stockbroker misconduct. Modest income producing stockbrokers may be fired or terminated after one complaint or disclosable incident. However, the pay-out to customers of the larger producers is simply the cost of doing business, and it is not uncommon to see registered representatives, with extensive…
In July 2012, the United States Securities & Exchange Commission brought an action against Emanuel L. Sarris, Sr. “Manny Sarris” of Doylestown Pennsylvania for four counts of federal securities fraud. According to the SEC complaint, from 2001 through 2009, Sarris conned over 70 individuals to invest approximately $30 million in a private hedge fund that…
Wayne Anthony Shultz, of Branchburg, New Jersey, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in all capacities after consenting to findings that he obstructed a FINRA investigation into notes that Schultz issued a client. Letter of Acceptance, Waiver and Consent, No. 2015044640601 (Feb. 5, 2016). According to the AWC, on…
James P. Hilty, Jr., from Ocala, Florida, as stockbroker for Edward Jones, was fined $5,000.00 and suspended for forty-five days from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver and Consent, No. 2014041875801 (Jan. 29,…
Karen Hajek, of Saint Petersburg, Florida, a stockbroker with Cetera Financial Specialists, LLC, was recently fined $15,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after Hajek consented to findings that she engaged in multiple undisclosed outside business activities. Letter of Acceptance, Waiver and Consent,…
Joel S. Bovee, of Wayzata, Minnesota, a stockbroker with Feltl & Company, was fined $5,000.00 and suspended for two months from association with any Financial Industry Regulatory Authority (FINRA) member in a principal capacity after consenting to findings that he had failed to supervise a stockbroker who engaged in unsuitable transactions. Letter of Acceptance, Waiver…
Andrew Scott Corbman, of Lansdown, Virginia, was suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unsuitable recommendations and provided misleading communications to investors. Letter of Acceptance, Waiver and Consent, No. 2010024620302 (Feb. 1, 2016). According to the AWC,…
Kevin Patrick Murphy of Summit, New Jersey, a stockbroker with TGP Securities, Inc., was fined $10,000.00 and suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he had engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No….
Michael Rene Lavelanet, of Garden City, New York, was charged by the Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Lavelanet willfully failed to disclose an estimated $382,490.00 in state warrants and federal tax liens via Form U4 updates, as well as falsely attesting the annual compliance questionnaire administered by Woodstock regarding such…
Carlton Eugene Burton, of Pace, Florida, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that Miller had misappropriated assets of his investment advisory firm. Letter of Acceptance, Waiver and Consent, No. 20150481049-01…
Key Investment Services, LLC, Next Financial Group, Inc., Stephens Inc., Bankers & Investors Co., and J.J.B. Hilliard, W.L. Lyons LLC were all recently censured and fined by Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010;…
Walter Francis Grenda, Jr., of Buffalo, New York, a stockbroker with Mid Atlantic Capital Corporation was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities per an Order Accepting Offer of Settlement containing findings that he engaged in fraudulent omissions and misrepresentations, engaged in improper loans from the…
George Johnson, of Chicago, Illinois, a stockbroker for Meyers Associates, L.P., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity in connection with an Order Accepting Offer of Settlement containing findings that Johnson committed fraudulent market manipulation; fraudulent omission of material conflicts concerning purchases/sales of a security;…
Christopher Wynne, of Chicago, Illinois, a stockbroker with Meyers Associates, L.P., was fined $25,000.00, barred from acting as a principal in any Financial Industry Regulatory Authority (FINRA) member firm, and received a two-year suspension from associating with any FINRA member firm in any capacity per an Order Accepting Offer of Settlement containing findings that Wynne…
Clay Emerson Hoffman, of Brunswick, Georgia, a stockbroker with Summit Brokerage Services, Inc., was fined $5,000.00 and suspended for fifteen days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized discretionary trading in a customer account. Letter of Acceptance, Waiver and Consent,…
John Joseph Labarca, of Edison, New Jersey, a stockbroker for National Securities Corporation, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had not cooperated in a FINRA investigation regarding a customer complaint lodged against him. Letter of Acceptance, Waiver and Consent,…
Shakif A. Khalil, of Ypsilanti, Michigan, a registered representative with Allstate Financial Services, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that Khalil misappropriated funds from customers. Letter of…
Stockbrokers lie, cheat and steal everyday. Just look at our blog, in today’s news, a broker was suspended for only a few months following an investigation and six unauthorized trading complaints. Another brokerage firm was found to have defrauded its customers 642 times and was simply fined. Such is not the case for Mia Carol Higens….
Alton Securities Group, Inc. located in Alton, Illinois, was censured and fined $75,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had an inadequate supervisory system pertaining to non-traditional exchange traded funds and non-traditional mutual funds, caused unsuitable recommendations to be made to customers, and caused excessive markups/markdowns on municipal debt…
Matthew D. Maberry, of Alton, Illinois, was fined $10,000.00, suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any capacity, and ordered to pay restitution of $38,445 after consenting to findings that he failed to supervise non-traditional exchange traded funds and made unsuitable recommendations to customers. Letter of Acceptance, Waiver and Consent,…
Merid Amde of Troy, Michigan, a stockbroker with Wunderlich Securities, was fined $20,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Order Accepting Offer of Settlement containing findings that Amde engaged in unauthorized discretionary trading, mismarking order tickets as solicited, falsification of records,…
William Wesley Marshall of Plano, Texas, a stockbroker for Ameriprise Financial Services Inc., was fined $10,000.00 and suspended for fifteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2012033291204 (Feb….
Morgan Stanley paid $9.5 million for hiding 14.5 million e-mails sought by the SEC in connection with an investigation back in 2006. Citigroup pays $720 million based upon the $71 bilion in toxic securities linked to mortgages it sold to the public. Charles Schwab paid $200 mllion in connection with the YieldPlus fiasco where it…
Wade James Lawrence was a stockbroker at Dallas Fort Worth area offices of Oppenheimer & Co., Inc.and Southwest Securities. Mr. Lawrence is now headed to jail for a three year prison term, and was ordered to pay restitution of $1,454,384.48, by a North Texas Federal Judge, See Case No. 3:15-cr-374- M: United States of America…
Jason Bryce Vanclef fist became registered with the Financial Industry Regulatory Authority in 2006, and since that time, he has been the subject of no less that seven customer initiated investment related complaints alleging fraud, and most recently on February 6, 2016, a FINRA regulatory action also alleging fraud in connection with the sale of…
Brian Lewis Pittman of Miami, Florida, a stockbroker with Sabadell Securities USA, Inc., was fined $10,000 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in all capacities after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2016048480901 (Feb….
Joseph G. Mahalick of Chicago, Illinois, a stockbroker for Newport Coast Securities Inc., was barred by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation into allegations of his sales practice violations. Letter of Acceptance, Waiver and…
James W. Anderson of Oklahoma City, Oklahoma, a stockbroker with WFG Investments, Inc., was fined $15,000 and suspended for fifteen months from associating with a Financial Industry Regulatory Authority (FINRA) member firm in all principal capacities after consenting to findings that he failed to supervise a stockbroker who engaged in unsuitable trading. Letter of Acceptance,…
Sheldon Harber of St. Louis, Missouri, a stockbroker with Cambridge Investment Research, Inc., was fined $10,000 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2014042539101 (Jan….
Michael B. Winegar of Salem, Oregon, a stockbroker with Wedbush Securities Inc., was barred by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member firm in any and all capacities after Winegar consented to findings that he converted funds from a customer. Letter of Acceptance, Waiver and Consent, No. 2015045014101 (Jan. 29, 2016)….
Purshe Kaplin Sterling Investments , based in Albany, New York, and its stockbroker Gopi Krishna Vungarala, of Midland, Michigan, were charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging misrepresentation and omission of a material fact in connection with the sale of securities ; failure to disclose volume discounts ;…
Robert J. Cross of Rome, Georgia, a stockbroker with Allstate Financial Services, LLC, was barred by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any and all capacities after Cross consented to findings that he failed to cooperate with a FINRA investigation into allegations of his business activities. Letter of Acceptance,…
MidAmerica Financial Services, located in Joplin, Missouri, was censured and fined $150,000 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had failed to establish and maintain supervisory systems associated with placements and deferred variable annuities. Letter of Acceptance, Waiver and Consent, No. 2014039194101 (Jan. 30, 2016). FINRA canceled the firm’s…
Michael William Hajeck III of St. Petersburg, Florida, a stockbroker with Genworth and Cetera Financial Services, LLC, was fined $35,000 and suspended for eighteen months by Financial Industry Regulatory Authority (FINRA) from associating with a FINRA member in any and all capacities after consenting to findings that he engaged in undisclosed outside business activities and…
Jason Daniel Sayles of St. Petersburg, Florida, a stockbroker with Genworth and Cetera Financial Services, LLC, was fined $15,000 and suspended for ten months by Financial Industry Regulatory Authority (FINRA) from associating with a FINRA member in any and all capacities after consenting to findings that he engaged in undisclosed outside business activities and private…
Jacob T. Turner of Orlando, Florida, a stockbroker with Cambridge Investment Research, Inc., was fined $5,000 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he made unsuitable recommendations to customers. Letter of Acceptance, Waiver, and Consent, No. 2013036516301…
Timothy Steven Dembski of Buffalo, New York, a stockbroker for Mid Atlantic Capital Corporation, was barred by Financial Industry Regulatory Authority (FINRA) in connection with an Office of Hearing Officers Order Accepting Offer of Settlement containing findings that Dembski made fraudulent omissions and misrepresentations to investors, engaged in improper loans from customers, and falsified testimony…
Michael Joseph Cortes of Hauppauge, New York, was fined $15,000 and suspended for six-months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in all capacities after consenting to findings that he engaged in unauthorized outside business activities; willfully failed to disclose tax warrants and a lien; and borrowed from funds in violation…
Paul T. Mannion, Jr. of Roswell, Georgia, a stockbroker registered with StreetCapital, Inc., was fined $10,000 and suspended for six months from association with any Financial Industry Regulatory Authority (FINRA) member firm in all capacities after consenting that he failed to disclose material information to potential investors. Letter of Acceptance, Waiver and Consent, No. 2011028722201…
Kevin Donald Wanner of Bismarck, North Dakota, a stockbroker with Questar Capital Corporation, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after he consented to findings that he failed to cooperate with a FINRA investigation. Letter of Acceptance, Waiver and Consent, No. 2015048162701 (Jan. 11, 2016)….
Morissa F. Rivo of Boca Raton, Florida, a registered representative with Signator Investors, Inc., was barred by Financial Industry Regulatory Authority (FINRA) from associating with any member in any capacity in connection with Rivo’s failure to cooperate with a FINRA investigation into allegations of Rivo’s misconduct. Letter of Acceptance, Waiver and Consent, No. 2014041961001 (Jan….
Steve Hinkle of Englewood, Colorado, was fined $10,000 and suspended for twenty days from association with any Financial Industry Regulatory Authority (FINRA) member in all principal capacities after consenting to findings that he failed to supervise procedures associated with detecting and preventing excessive and unsuitable trading. Letter of Acceptance, Waiver and Consent, No. 2014038969301 (Jan….
Thomas Edmund Connors, of Toms River, New Jersey, a stockbroker with Prime Capital Services, Inc., was fined $40,000 and suspended for fourteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity in connection with a FINRA Office of Hearing Officers Hearing Panel Decision containing findings that Connors engaged in undisclosed…
Ridgeway & Conger, Inc., stockbrokers Kenley Brisard and Philip Brisard, and the firm’s president Leigh Garber, all located in Woodstock, New York, were charged by the Financial Industry Regulatory Authority (FINRA ) in a nine count Complaint containing allegations of fraudulent misrepresentations and omissions of material fact in connection with customer purchases (Kenley and Philip…
Marco Antonio Daniel of Chula Vista, California, a stockbroker with PFS Investments, Inc., was suspended for four months from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after engaging in unauthorized loans with a customer and engaging in an unauthorized outside business activity. Letter of Acceptance, Waiver and Consent, No….
Michael Roger Griffith of Timonium, Maryland, a stockbroker with NYLIFE Securities LLC, was barred from association with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had submitted fictitious applications for life insurance and forged customer signatures without authorization. Letter of Acceptance, Waiver and Consent, No. 2015046129301 (Jan….
James J. Nixon of Westport, Connecticut, a stockbroker with Terranova Capital Equities, was fined $15,000 and suspended for three months in all capacities from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he engaged in unauthorized private securities transactions and made misleading statements to investors. Letter of Acceptance, Waiver…
Michael A. Nahass of Irvine, California, a stockbroker with Arque Capital, was fined $15,000.00 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in undisclosed outside business activities, opened an undisclosed outside securities account, and submitted false compliance questionnaires. Letter of…
Eric W. Kuchel of Brea, California, a stockbroker with LPL Financial LLC, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Kuchel repeatedly delayed and failured to provide requested testimony in connection with a FINRA investigation into Kuchel’s alleged mutual fund transactions and private securities transactions. Department of…
Michael D. Rasmovich of Louisville, Kentucky, a stockbroker with Waddell & Reed, was fined $10,000 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for two months after consenting to findings that he exercised discretion in eighty customer accounts without prior written authorization from the customers or…
Carlos Benavidez, Jr., of Louisville, Kentucky, a stockbroker with Waddell & Reed, was fined $10,000 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for two months after consenting to findings that he exercised discretion in eighty customer accounts without prior written authorization from the customers or…
Katherine Lapidoth of Aventura, Florida, a stockbroker with Wells Fargo Advisors, has been suspended for two years from association with any Financial Industry Regulatory Authority (FINRA) member and fined $15,000 in connection with an Office of Hearing Officers Order Accepting Offer of Settlement that contained findings that Lapidoth provided false information to regulators and failed to…
Jeffrey Davidson of Stuart, Florida, a stockbroker with American Portfolio Financial Services, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities for three months and fined $10,000 after consenting to findings that he engaged in unsuitable mutual fund switching in customer accounts. Letter of Acceptance, Waiver…
Stifel, Nicolaus & Company, Inc., headquartered in St. Louis Missouri, was censured and fined $200,000; while one of the firm’s supervisors, Kurt LaLomia of Baltimore, Maryland, was fined $15,000 and suspended for thirty-one days from association with any Financial Industry Regulatory Authority (FINRA) member firm in any principal capacity, after consenting to findings that from…
Jose A. Zapata of San Antonio, Texas, a stockbroker with formerly registered with Argentus Securites, LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made misrepresentations to one of his customers in order to conceal information from a customer regarding her account…
Liberty Associates, Inc. of New York, New York, was censured and fined $3,500.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had failed to establish, maintain, and enforce adequate supervisory procedures concerning private placements. Letter of Acceptance, Waiver and Consent, No. 2013035239001 (Dec. 29, 2015). According to the AWC, from…
Merrill Lynch, Pierce, Fenner & Smith Inc. of New York, New York, was censured and fined $1,250,000 after consenting to findings of the firm’s failure to fingerprint or timely fingerprint associated persons; failure to adequately screen for statutory disqualification; failure to create required documents; and failure to establish and maintain an adequate supervisory system and…
Oppenheimer & Co., Inc., of New York, New York, was censured and fined $225,000 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed have adequate supervisory procedures to address short positions in tax-exempt municipal bonds that resulted primarily from trading errors and which resulted in inaccurate representations to Oppenheimer’s clients….
Richard Marvin Muhlberg of Cherry Hill, New Jersey, a stockbroker with Sigma Financial Corporation, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for a period of three months and fined $10,000 after consenting to findings that he had borrowed money in violation of his firm’s procedures…
John Vincent Ballard of Memphis, Tennessee, a stockbroker with International Finance Solutions, Inc., was barred by Financial Industry Regulatory Authority (FINRA) per a National Adjudicatory Council Decision affirming findings that Ballard had engaged in undisclosed outside business activities, failed to provide documents in response to FINRA’s request for documents, and failed to appear for on-the-record…
William B. Fretz, Jr., and John P. Freeman, both of Oaks, Pennsylvania, were found by the Financial Industry Regulatory Authority (FINRA) Department of Enforcement to have engaged in business-related conduct that is inconsistent with just and equitable principles of trade as a consequence of providing misleading information to FINRA and filing a false Form U4….
Richard A. McCollam of Layfayette, California, a stockbroker with National Planning Corporation, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging McCollam willfully failed to disclose two customer arbitrations and seven customer complaints on his Uniform Application for Securities Industry Regulation filed on January 22, 2014, referred to as…
John D. Wiswell of Stuart, Florida, a stockbroker with American Portfolio Financial Services, was fined $5,000 and suspended for fifteen business days from association with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity after consenting to findings that she failed to supervise a Stockbroker’s conduct in order to prevent unsuitable recommendations from…
Carl W. Busch of Oklahoma City, Oklahoma, a Stockbroker with WFG Financial, was fined $5,000 and suspended in all principal capacities from association with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he failed to adequately supervise the sales practice of Larry Michael Crabtree, a Stockbroker of WFG, who had…
Larry Michael Crabtree of Edmond, Oklahoma, a stockbroker with WFG Investments, Inc., was suspended for six-months in all capacities from association with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that Crabtree engaged in unsuitable trading and improperly exercised discretion in the account of a customer; sent inappropriate and unapproved communications…
Glenn Nicholas Caruso of New York, NY, a Stockbroker with Tullett Prebon Financial Services LLC, was barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to findings that he failed to cooperate with FINRA in their investigation into Caruso’s alleged misconduct regarding municipal bond trading…
Edward J. Vierling, Sr. of New York, New York, a Stockbroker with Tullett Prebon Financial Services LLC, was barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to findings that he failed to cooperate with FINRA in their investigation into Vierlings’s alleged misconduct regarding bond…
Craig Scott Capital, LLC, headquartered in Uniondale, New York, along with owners Craig Scott Taddonio and Brent Morgan Porges, were charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that the firm and its owners had engaged in excessive and unsuitable trading, fraudulent churning, and other supervisory failures. Department of…
Barclay’s Capital, Inc., headquartered in New York, New York, was censured and fined $3,750,000 after consenting to findings that the firm had inadequate supervisory systems and written supervisory procedures for supervising the sale of mutual funds to retail brokerage customers. Letter of Acceptance, Waiver and Consent, No. 2015044544001 (Dec. 18, 2015). According to the AWC,…
John Soon Lee, a stockbroker with Wunderlich Securities, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Office of Hearing Officers Default Decision containing findings that Lee converted customer funds and failed to provide requested information and testimony to FINRA in connection with an investigation into allegations…
William W. Brown of Beverly Hills, California, a stockbroker with J.P. Morgan Securities LLC, was fined $10,000 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member firm in all capacities for fifteen business days, and ordered to pay a customer restitution in the amount of $1,473.88 pus prejudgment interest after consenting to…
Randall Gladden of El Cajon, California, a stockbroker with Securities Equity Group, was just charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Gladden had engaged in unauthorized private securities transactions; undisclosed outside business activities; and made material misrepresentations and omissions. Department of Enforcement v. J. Randall Gladden, No….
Quest Capital Strategies, Inc. of Miami, Florida, was censured and fined $25,000 from the Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had failed to establish adequate supervisory systems and written supervisory procedures pertaining to supervision of mutual funds sales, supervision of accounts to prevent overcharging of customers, and other compliance…
Valentino Infante of Miami, Florida, a Stockbroker with Wells Fargo Advisors LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity per an Office of Hearing Officers Default Decision containing findings that Infante engaged in outside business activities without providing his employer with prior written notice; provided false…
David C. Cannata of Uniondale, New York, a stockbroker with Craig Scott Capital, LLC, was charged by the Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Cannata excessively traded and churned customer accounts; and also failed to comply with a FINRA investigation into his alleged misconduct. Department of Enforcement v….
Scott J. Freeze of Huntington Valley, Pennsylvania, a stockbroker with Street One Financial (SOF), was fined $10,000 and suspended for three-months from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he had improperly engaged in outside business activities. Letter of Acceptance, Waiver and Consent, No….
Cantor Fitzgerald & Co., headquartered in New York, New York, was censured, fined $6,000,000 and disgorged of $1,285,561 plus interest after consenting to findings that the firm had failed to adequately supervise sales of microcap securities pertaining to due diligence and identifying red flags with unlawful distributions of unregistered securities. The firm’s executive managing director…
Aon D. Miller of Chattanooga, Tennessee, a stockbroker with Benjamin F. Edwards & Company, was fined $50,000 and suspended for two years from association with any Financial Industry Regulatory Authority (FINRA) member per an FINRA Extended Hearing Panel Decision which contained findings that Miller engaged in private securities transactions without providing prior written notice to…
Yinyi Chen of Alhambra, California, a stockbroker with Fortune Securities, Inc., was fined $7,500.00 and suspended for thirty days from association with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity after consenting to findings that she failed to supervise the investment-advisory activities of a Stockbroker’s private securities transactions. Letter of Acceptance, Waiver…
Craig G. Langweiler of Philadelphia, Philadelphia, a registered representative with Meyers Associates, L.P., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Langweiler had willfully failed to update his Uniform Application for Securities Industry Regulation or Transfer (Form U4) to timely disclose tax liens and civil judgments. Department…
John Charles Kautter of Bethesda, Maryland, a registered representative with New England Securities, was suspended for two months from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities in connection with an Order Accepting Offer of Settlement containing findings that he had facilitated an unapproved loan transaction. Department of Enforcement…
William H. Watson III of Brookfield, Wisconsin, a registered representative with Finance 500, was fined $5,000 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity for ten business days after consenting to findings that he had participated in securities offerings using marketing materials that were not fair and…
Barry David Abrams of Marlton, New Jersey, a registered representative with Securities Service Network, Inc., was fined $5,000 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for a period of fifteen business days after consenting to findings that he had engaged in unauthorized discretionary trading in…
Lori A. Hermanson of Greenwood Village, Colorado, a registered representative with TransAmerica Financial Advisors, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that Hermanson had converted funds and engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2015047979601 (Dec….
Fidelity Brokerage Services, headquartered in Smithfield, Rhode Island was censured, fined $500,000, and ordered to pay customers restitution of $529,270 plus interest after consenting to findings that the firm had failed to prevent or detect conversion of more than $1,000,000 from nine Fidelity customers by a convicted felon; and failed to establish and maintain adequate…
Samuel Wylie Sloane of Fort Worth, Texas, a registered representative with Morgan Stanley, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he had failed to comply with a FINRA investigation into allegations of Sloane’s conversion of customer funds. Letter of…
Rick Esparza of Rancho Murieta, California, a registered representative with Princor Financial Services Corporation, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he had failed to comply with a FINRA investigation into allegations of Esparza’s participation in unauthorized loans. Letter…
Pariter Securities, LLC, headquartered in Guaynabo, Puerto Rico, was censured and fined $10,000 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had failed to adequately establish, maintain and enforce a supervisory system and written supervisory procedures to prevent its registered representatives from exercising discretionary power in customer accounts prior to…
Thomas M. Phillips II of Columbus Ohio, a registered representative with Wesbanco Securities, Inc., was censured and fined $10,000 after consenting to findings that he misstated fees associated with variable annuity transaction switch forms. Letter of Acceptance, Waiver and Consent, No. 2014039231201 (Dec. 4, 2015). According to the AWC, from November 2013 – September 2014,…
Finance 500, Inc., headquartered in Irvine, California, was censured and fined $85,000 from Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had failed to establish, maintain and enforce a supervisory system and written procedures to review and monitor private placements sales practices and materials. Letter of Acceptance, Waiver and Consent, No….
Paul D. Garnett of Beatrice, Nebraska, a registered representative for Edward Jones, was fined $40,000 and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he participated in unauthorized private security transactions and an outside business activity. Letter of Acceptance, Waiver and…
James S. Witter of Garden City, New York, a registered representative with Royal Alliance Associates, Inc., was fined $5,000 and suspended for two months from association with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity after consenting to findings that Witter failed to reasonably supervise a registered representative who engaged in unsuitable…
Comprehensive Asset Management and Servicing, Inc. (CAMS), headquartered in Parsippany, New Jersey, was censured and fined $475,000 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had failed to meet supervisory obligations including 1) the review and retention of consolidated reports; 2) private securities transactions; and 3) variable annuities. Letter of…
Lincoln Financial Advisors, located in Fort Wayne, Indiana, was censured and fined $90,000 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to adequately supervise the activities of a registered representative who engaged in unsuitable penny stock trading. Letter of Acceptance, Waiver and Consent, No. 2011029739902 (Dec. 8, 2015). According…
Keilen Dimone Wiley of Houston, Texas, a registered representative with Farmers Financial, LLC, was found by the Securities and Exchange Commission to have converted insurance premium payments and provided false and misleading information to a self-regulatory organization (Financial Industry Regulatory Authority) during an on-the-record interview. In the Matter of the Application of Keilen Dimone Wiley,…
Global Arena Capital Corp., headquartered in New York, New York, was fined $1,000,000 and expelled by the Financial Industry Regulatory Authority (FINRA) per the terms of a Default Decision by the Office of Hearing Officers which contained findings that the firm charged customers unfair and unreasonable prices and excessive markups, along with failing to establish,…
The Office of Investor Education and Advocacy of the United States Securities and Exchange Commission issued an Investor Bulletin to educate investors about Exchange Trade Notes According to the SEC, Exchange Trade Notes are unsecured debt obligations of financial institutions that trade on a securities exchange. Exchange Trade Notes payment terms are linked to the…
North American Securities Administrators Association (NASAA) released its annual list of top investor threats. The top investor threats were compiled from a survey from the various state securities regulators to identify the five most problematic schemes. Following the launch of the Investment Fraud Bingo Program, it is uncertain whether the Commonwealth of Pennsylvania Department of…
J. P. Morgan Securities LLC is the securities broker-dealer subsidiary of J.P. Morgan, and as a broker-dealer sells securities and investment services through approximately 2,800 financial advisors located in Chase bank branches nationwide. As of the end of last year, J.P. Morgan, the bank, has $2.6 trillion in assets and J.P. Morgan Asset Management also…
Today, the United States Attorney for the Eastern District of New York unsealed a seven-count indictment Martin Shkreli and his lawyer with securities fraud. According to the indictment, between September 2009 and January 2011, Shkreli falsely represented to potential investors his company MSMB Capital was a transparent investment vehicle for sophisticated investors with monthly liquidity,…
In July 2014, the Financial Industry Regulatory Authority formed a Task Force composed of three claimants lawyers, five defense lawyers from the securities industry, a state securities regulator, an arbitrator, a mediator, an academic, and a representative of the Consumer Foundation of America. It appears that the Task Force was organized to enhance the efficiency,…
J.P. Turner & Company, based in Atlanta, Goeorgia, was censured and fined $140,000 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had not charged customers prices that were fair and reasonable in the purchase/sale of securities. Letter of Acceptance, Waiver and Consent, No. 20130358778 (Nov. 25, 2015). According to the…
John Michael Leone, a non-registered associated person with Merrill Lynch, Pierce, Fenner & Smith, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member frim in any capacity after consenting to findings that he attempted to convert customer funds. Letter of Acceptance, Waiver and Consent, No. 2015045761101 (Dec. 1, 2015). According to the…
Jeffrey B. Risinger of Carmel, Indiana, a registered representative with PIN Financial, LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had failed to cooperate with a FINRA investigation into allegations of Risinger’s participation in a Ponzi scheme. Letter of Acceptance, Waiver…
Brickell Global Markets, also known as E.S. Financial Services, Inc., based in Miami, Florida, was censured and fined $275,000 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm had charged customers unreasonable fees, failed to deliver prospectuses, allowed unauthorized individuals to direct trading in accounts, among other violations. Letter of Acceptance,…
David J. Sullivan of Boston, Massachusetts, a registered representative with J.P. Morgan Securities LLC, was fined $5,000 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for fifteen days after consenting to findings that he engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver and Consent No….
FTB Advisors, Inc., Inc. was censured and fined $125,000 by Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010; as well as failing to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably…
Leon William Vaccarelli of Waterbury, Connecticut, a registered representative with The Investment Center, Inc., was fined $7,500 and suspended for one month from associating in any and all capacities with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that Vaccarelli exercised unauthorized discretion in customer accounts. Letter of Acceptance, Waiver and…
Timothy Rodgers of Overland Park, Kansas, a registered stockbroker with Wells Fargo Advisors, LLC, was fined $10,000 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had engaged in unauthorized private securities transactions and made false statements to his firm…
Woodbury Financial Services, Inc., of Oakdale, Minnesota, was censured and fined $100,000 by Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010; as well as failing to establish, maintain and enforce a supervisory system and written…
Joseph R. Holzhause of Henderson, Nevada, a registered representative with Waddell & Reed, was barred in all capacities from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he had signed and distributed to a third party a false and materially misleading letter, failed to…
John S. Matthews of New York, New York, the former owner of Global Arena Capital Corporation, was fined $25,000 and suspended for six months from association with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2013037235012 (Dec….
Jeffrey L. Rittberger of New Concord, Ohio, a stockbroker associated with Huntington Investment Company, was fined $10,000 and suspended for forty-five days from association with any Financial Industry Regulatory Authority (FINRA) member in all capacities after consenting to findings that he made unsuitable recommendations to firm customers. Letter of Acceptance, Waiver and Consent, No. 2013036874902…
Dennis P. Van Patter of Dallas, Texas, a registered representative with VSR Financial Services, Inc., was fined $10,000 and suspended for forty-five days from association with any Financial Industry Regulatory Authority (FINRA) member in all capacities after consenting to findings that he made unsuitable recommendations to firm customers. Letter of Acceptance, Waiver and Consent, No….
Cantone Research Inc., located Tinton Falls, New Jersey, along with its President and majority owner, Anthony J. Cantone, and Christine L. Cantone have been named by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging fraudulent misrepresentations and omissions of material fact in connection with the sales and subsequent extensions of over…
Royal Alliance Associates, Inc. was censured and fined $225,000 by Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010; as well as failing to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably…
Robert N. Adrian of Memphis, Tennessee, a registered representative with Stifel, Nicolaus & Company, was fined $5,000 and suspended for forty-five days from association with any Financial Industry Regulatory Authority (FINRA) member in all principal capacities after consenting to findings that he failed to supervise a registered representative in a manner designed to detect the…
James Michael Johnson of Richmond, Virginia, a registered representative with Commonwealth Financial Network, was suspended in all capacities from association with any Financial Industry Regulatory Authority (FINRA) member firm for two years, and fined $50,000 after consenting to findings that he made negligent misrepresentations and omissions to firm customers in connection with securities investments, while…
Summit Brokerage Services of Boca Raton, Florida, was censured and fined $250,000 by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm, via its registered representatives, made unsuitable recommendations for customers to purchase leveraged and inverse exchange-traded funds. Letter of Acceptance, Waiver, and Consent, No. 2011029635101 (Dec. 2, 2015). According to…
David Paul Rankin, Jr. of Lexington, Kentucky, a registered representative with Lexington Investment Company, Inc., was fined $5,000 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacities after consenting to findings that he obtained loans from customers in violation of his firm’s policies. Letter of Acceptance,…
Mark J. Ciriaco of Omaha, Nebraska, a registered representative with Securian, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he had converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2014042879701 (Nov. 20, 2015). According to the AWC, in…
David Michael Miller of Columbus, Ohio, a registered representative with Huntington Investment Company, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Miller did not have reasonable grounds for believing his recommendations were suitable in purchases of unit investment trusts in one hundred and twenty-nine customer accounts. Department…
David Levorchick of Sidney, Ohio, a registered representative with U.S. Bancorp, Inc., was fined $7,500 and suspended for thirty days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he negligently misrepresented to a customer that the liquidation of a variable annuity would not result in…
Michael Jump of Somonauk, Illinois, a registered representative with Investment Planners, Inc., was fined $10,000 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he negligently misrepresented information pertaining to fees associated with variable annuities, while also failing to…
Jack Stuart O’Brien, Jr. of San Jose, California, a registered representative with Princor Financial Services Corporation, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he failed to cooperate with FINRA’s investigation into allegations that O’Brien accepted unauthorized compensation from a firm…
Glen Robert King of Shrewsbury, NJ, a registered representative with Buckman, Buckman & Reid, Inc., was charged by the Department of Enforcement of Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that King made fraudulent misrepresentations to customers, engaged in excessive and unsuitable trading, and exercised discretion in accounts of customers without written authority….
Sheik F. Abida Khan of Murrieta, California, a registered representative with Ameritas Investment Corp., was suspended from associating with any Financial Industry Regulatory Authority (FINRA) broker-dealer in any capacity for a period of four months plus ten additional days for participation in outside business activities without notice to his firm, sending misleading and false statements…
Christopher S. Scott of Colorado Springs, Colorado, a registered representative with Geneos Wealth Management, Inc., was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm and fined $5,000 after consenting to findings that he borrowed money without permission or notice to his employer. Letter of Acceptance, Waiver and Consent, No. 2015044007101 (Nov….
Following both an SEC action and a criminal action, Joshua B. Gladtke of New York, New York, a registered representative formerly with Arjent LLC, was permanently barred by Financial Industry Regulatory Authority (FINRA) after he failed to appear for on-the-record testimony in connection with an investigation into Gladtke’s private securities transactions. Letter of Acceptance, Waiver…
Christian B. Harkness of Lacrosse, Wisconsin, a registered representative with Stifel, Nicolaus & Company, Inc., was fined $15,000 and suspended for nine months fromChristian B. Harkness associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he had engaged in unauthorized borrowing from a customer, engaged…
William A. Sloane of Glastonbury, Connecticut, a registered representative with Buell Securities Corp., was fined $5,000 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member in all capacities for twenty days after engaging in unauthorized discretionary trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014042924501 (Nov. 3, 2015). According…
Jason L. Reid of New York, NY, a registered representative with Halcyon Cabot Partners, Ltd., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he sold securities by means of false and misleading information; acted as a principal and engaged in…
ProEquities, Inc. was censured and fined $165,000 by Financial Industry Regulatory Authority (FINRA) for failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010; as well as failing to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to…
Miguel Ortiz, a registered representative with John Thomas Financial, was barred from association with any Financial Industry Regulatory Authority (FINRA) member in all capacities in a Hearing Panel Decision containing findings that Ortiz willfully defrauded customers in violation of Section 10(b) of the Securities Exchange Act of 1934, along with willfully failing to disclose a…
Katherine Lapidoth of Aventura, Florida, a registered representative with Wells Fargo Advisors, has been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Lapidoth had provided false information to regulators and failed to comply with a FINRA investigation into her potential misconduct. Department of Enforcement v. Lapidoth, No. 2013039650502…
Indiana Pennsylvania based stockbroker Bernard M. Parker has plenty of tax liens. Since 2006, according to public disclosure records, he appears to have had at least six liens against him for failure to pay his taxes. In fact, Bernard Parker had so many tax liens against him, he began selling tax liens…
Glenn A. Moffitt of Henderson, NV, a former general securities representative with Cambridge Investment Research, Inc., was permanently barred from association with any FINRA-registered firm in all capacities after failing to appear for on-the-record testimony in connection with FINRA’s investigation into allegations that Moffitt converted $370,000 from a customer. FINRA Letter of Acceptance, Waiver, and…
On November 5, 2015, by consent, the Securities and Exchange Commission obtained a judgment against George P. Brown, age 81, in connection with an action against George P. Brown and his son Kevin C. Brown, age 49, both of Pennsylvania, and their related entities, for fraud in connection with the sale of various unregistered securities…
BOSC, Inc., of Tulsa, Oklahoma, was censured and fined $25,000 by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm sold (or bought) eight corporate bonds to (or from) customers and failed to sell (or buy) such bonds at a price that was fair within eight transactions. Letter of Acceptance, Waiver…
Monex Securities, Inc., of Houston, Texas, was censured and fined $25,000 by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm sold (or bought) corporate bonds to (or from) customers and failed to sell (or buy) such bonds at a price that was fair within six transactions. Letter of Acceptance, Waiver…
Daniel Kasbar of Hollywood, Florida, a registered representative with LPL Financial, LLC, was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that Kasbar engaged in undisclosed outside business activities. Letter of Acceptance,…
Jacob Lerman of Souderton, Pennsylvania, a registered representative of Univest Investments, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he had failed to cooperate with a FINRA investigation into allegations that Lerman had committed forgery on customer documents. Letter of…
Donna Kay Beers of Dallas, Texas, a registered representative with Titan Securities of Addison Texas (CRD No. 131392), was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she failed to cooperate with a FINRA investigation into allegations that Beers had engaged in…
Xavier R. Endress of Bloomfield Hills, Michigan, a registered representative with Merrill Lynch, Pierce, Fenner & Smith, Inc., was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) registered firm in all capacities after consenting to findings that he engaged in undisclosed outside business activities and provided false information to his employer in…
Richard J. Rubin, Jr. of Stamford, Coonecticut, a registered representative for Northwestern Mutual, was fined $5,000 and suspended for fifteen days from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to findings that he engaged in an outside business activity without the written approval of his…
Radnor Research and Trading Company, based in the Philadelphia area, was censured and fined $50,000 per an Order Accepting Offer of Settlement containing findings that Radnor disregarded supervisory obligations that resulted in the failure to meet important reporting, disclosure, and compliance responsibilities. Department of Enforcement v. Radnor Research & Trading Company, et al., No. 2013036681701…
Stephens, Inc., located in Little Rock, Arkansas, was censured by Financial Industry Regulatory Authority (FINRA) for disadvantaging certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge; and for failing to establish and maintain a supervisory system and procedures reasonably designed…
Vivian Dragoo, a non-registered associated person with Fidelity, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she had converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2015045420101 (Oct. 28, 2015). Fidelity terminated Dragoo on April 21, 2015, in connection…
Janney Montgomery Scott, located in Philadelphia, Pennsylvana, was censured by Financial Industry Regulatory Authority (FINRA) for disadvantaging certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge; and for failing to establish and maintain a supervisory system and procedures reasonably designed…
Stifel Nicolaus & Co., located in St. Louis, Missouri, was censured by Financial Industry Regulatory Authority (FINRA) for disadvantaging certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge; and for failing to establish and maintain a supervisory system and procedures…
Edward D. Jones & Co., L.P., located in St. Louis, Missouri, was censured by Financial Industry Regulatory Authority (FINRA) for disadvantaging certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge; and for failing to establish and maintain a supervisory system…
Alan Cashaw, Jr., of Philadelphia, Pennsylvania, a registered representative with FSC Securities Corporation, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Cashaw failed to respond to FINRA’s requests to provide information in connection with a FINRA investigation into Cashaw’s alleged misconduct. Department of Enforcement v. Alan Cashaw,…
Ameritas Investment Corp., Cetera Advisors LLC, Comerica Securities, Inc., Fifth Third Securities, Inc., First Allied Securities, Inc., Park Avenue Securities, LLC, Securities America, Inc., Huntington Investment Company, Cetera Advisor Networks LLC, Commonwealth Financial Network, MetLife, and Infinex Investment, Inc., were all recently censured and fined by Financial Industry Regulatory Authority (FINRA) for failing to apply…
Chandler D. Le of Bala Cynwyd, Pennsylvania, a registered representative with NYL Securities, was fined $7,500 and suspended for two months from associating with any Financial industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in an outside business activity and commingled customer funds in a business account…
Mark S. Prokay of New Castle, Pennsylvania, a registered representative with W&S Brokerage Services, Inc. and affiliated with Western Southern Life, was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to findings that he failed to cooperate with a FINRA investigation into allegations…
Anthony C. Gray of Baton Rouge, Louisiana, a stockbroker with Edward Jones, was permanently barred in all capacities from associating with any Financial Industry Regulatory Authority (FINRA) member firm in all capacities after consenting to findings that he had misappropriated nearly $138,000 from two elderly customers. Letter of Acceptance, Waiver and Consent, No. 2015047279101 (Oct….
Salena Lynn Woods of Pearland, Texas, a stockbroker with J.P. Morgan Securities, LLC, was permanently barred from associating with any FINRA member in any capacity after consenting to findings that she failed to comply with a FINRA investigation into allegations that Woods misappropriated funds from a firm customer. Letter of Acceptance, Waiver and Consent, No….
Lydia B. Barraza, a stockbroker with Farmers Financial Solutions, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she converted funds from a firm customer. Letter of Acceptance, Waiver and Consent, No. 2015045880301 (Oct. 20, 2015). On June 17, 2015, her…
Liam Gerard O’Keeffe from Danbury, CT, a Stockbroker with Merrill Lynch, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he failed to provide information and documentation requested by FINRA in the course of their investigation into allegations that O’Keeffe exercised discretion…
Tracy Neal Wengert from Mesa, Arizona, a stockbroker with Transamerica Financial Advisors, Inc., was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had failed to comply with FINRA’s investigation into allegations against Wengert, including that he opened brokerage accounts outside of his…
Randy Warren Burke of Hickory, North Carolina, a stockbroker with Synergy Investment Group, LLC, Capital Investment Group, Inc., and most recently Carlton & Associates, Inc., was permanently barred in all capacities from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he participated in private securities transactions that were not…
Rodney Dewayne Welch of Minden, Louisiana, a Stockbroker with State Farm, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he failed to comply with an investigation into allegations that Welch mishandled a policyholder’s premium payments. Letter of Acceptance, Waiver and…
Clifford Morgan from Chicago, Illinois, a stockbroker with Uhlmann Price Securities, LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had engaged in private securities transactions without approval from his firm; made material misrepresentations to firm customers; and failed to fully and…
Jason L. Figueroa of Boca Raton, Florida, a stockbroker with GMS Group, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had recommended and engaged in unsuitable trading in nontraditional ETFs in customer accounts, while exercising discretion without prior written authority…
Andrew Lyman Quinn of Reno, Nevada, a stockbroker with Stifel, Nicolaus & Company, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity in connection with a Hearing Panel Decision containing findings that Quinn failed to respond to FINRA’s requests for information in connection with an investigation…
Joseph R. Daigneault of Biddeford, Maine, a stockbroker with Investors Capital Corp., was fined $10,000 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity for twenty days after consenting to findings that he had provided customers with consolidated statements that contained misleading and inaccurate information regarding customers’ financial…
David A. Scholl of Grand Rapids, Michigan, a stockbroker with PlanMember Services Inc., was fined $5,000 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he participated in private securities transactions in violation of his firm’s policies. Letter of Acceptance,…
Wunderlich Securities, Inc., a FINRA member firm located in Memphis, Tennessee, was censured and fined $50,000 after consenting to Financial Industry Regulatory Authority (FINRA) findings that the firm had failed to establish, maintain, and enforce an adequate supervisory system and written procedures concerning the preparation and dissemination of consolidated reports, while also failing to supervise…
James G. Christianson from Portland, Oregon a Stockbroker with Wells Fargo Advisors, LLC, was suspended for fifteen days from association with all Financial Industry Regulatory Authority (FINRA) members and fined $10,000 after consenting to findings that he exercised discretion in three accounts of a customer without obtaining written authorization from the customer and without written…
Marc A. Arena of Westbury, New York, a stockbroker with Newport Coast Securities, Inc., was suspended for twenty-three months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in a principal capacity, while being suspended for ten business days from association with any FINRA member firm in any capacity per an Order Accepting…
Capital Securities Management, Inc., a brokerage firm and investment adviser firm from Glenn Allen, Virginia, was censured and fined $470,000 after consenting to Financial Industry Regulatory Authority (FINRA) findings that the firm engaged in unsuitable sales of reverse convertible notes; charged excessive commissions; failed to establish, maintain, and enforce an adequate supervisory system and written…
Scott Neal Glazer of Calabasas, CA, a stockbroker with GBS Financial Corp., was suspended from association with any Financial Industry Regulatory Authority (FINRA) member in all capacities for six months and fined $50,000 in connection with an Order Accepting Offer of Settlement containing findings that Glazer engaged in manipulative trading and caused the publication of…
Fred Perelman, a Stockbroker with Avenir Financial Group, was charged by Financial Industry Regulatory Authority Department of Enforcement in a Complaint alleging that Perelman failed to cooperate in a FINRA investigation into Perelman’s outside business activities and business practices within Avenir. Department of Enforcement v. Perelman, No. 2015047104201 (Oct. 18, 2015). According to the Complaint,…
Emily S. Pao, a Stockbroker with HSBC Securities (USA), Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that Pao had refused to cooperate in an investigation into allegations of converting funds from a customer. Letter of Acceptance, Waiver, and Consent, No. 20150459320-01…
Jeffrey David Snyder, a Stockbroker with Network 1 Financial Securities, was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to findings that he failed to fully cooperate with a FINRA investigation into allegations of Snyder’s covering of a customer’s losses. Letter of Acceptance,…
Andrew M. Abern, a Stockbroker with Dalton Strategic Investment Services Inc., was permanently barred from association with any member of Financial Industry Regulatory Authority (FINRA) in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation into Abern’s recommendations to customers regarding variable annuities. Letter of Acceptance, Waiver, and Consent,…
Heon Kim, a Stockbroker with Ameritas Investment Corporation, was barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to FINRA findings that he failed to cooperate in an FINRA investigation into allegations that Kim had engaged a non-licensed individual to solicit and sell variable products…
Aaron Heimowitz, a Stockbroker with Newport Coast Securities, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity for a period of seven months and fined $15,000 after consenting to findings that Heimowitz participated in private securities transactions and outside business activities in violation of firm policies. Letter of…
Brodie Johnson, a Stockbroker with Merrill Lynch, was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that Johnson had failed to provide information and documentation pursuant to a FINRA investigation into Johnson’s alleged outside business activities and trading in personal accounts. Letter of Acceptance,…
Paul Anthony Steffany, a Stockbroker with Raymond James, was permanently barred from association with any Financial Industry Regulatory Industry (FINRA) after consenting to findings that he converted funds from his firm’s customer, while also forging the signature on checks made payable to the estate of an individual. Letter of Acceptance, Waiver, and Consent, No. 2014041650301…
Santander Securities, LLC, was censured, fined $2,000.000.00, and ordered to pay restitution of roughly $4,300,000.00 after consenting to Financial Industry Regulatory Authority (FINRA) findings that the firm had failed to have a reasonably designed supervisory system and set of procedures pertaining to sales of Puerto Rico Municipal Bonds to customers in Puerto Rico, and had…
Joseph Murray Snyder III, a Stockbroker with Allstate Financial Services, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he failed to cooperate with FINRA in their investigation into allegations of Synder’s misappropriation of customer funds. Letter of Acceptance, Waiver, and Consent, No. 2014040233501 (Oct….
Stockbroker J. Michael Casas was barred by Financial Industry Regulatory Authority (FINRA) in any and all capacities and ordered to pay restitution in connection with an Extended Hearing Panel Decision containing findings that Casas had fraudulently sold securities issued by his company on the basis of false statements of material fact and that Casas converted…
John Thomas Oates, Jr., a Stockbroker with Cetera Financial Specialists LLC, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for six months and fined $10,000 after consenting to findings that Oates engaged in outside business activities in violation of his firm’s policies. Letter of Acceptance, Waiver,…
Halcyon Cabot Partners, Ltd. was expelled from Financial Industry Regulatory Authority (FINRA) membership, while two of its principals, Ronald Mark Heineman and Michael Trent Morris, were permanently barred from association with any FINRA member in any capacity per an Order Accepting Offer of Settlement containing findings of widespread violations of securities laws including a scheme…
Darnell A. Deans, a Stockbroker with Garden State Securities, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for eight months and fined $10,000 per an Office of Hearing Officers Settlement containing findings that Deans had borrowed funds in violation of his firm’s policies. Department of Enforcement…
David D. Lewis, who held the positions of chairman, chief executive officer, chief compliance officer, and compliance registered options principal with First Washington Corporation, was suspended from association with all Financial Industry Regulatory Authority (FINRA) members in all capacities for two years and fined $30,000 per an Office of Hearing Officers Settlement containing findings that…
UBS is a Swiss corporation, and the owner of UBS Financial, which conducts business in the United States and is a member of the Financial Industry Regulatory Authority. In 2014, UBS, one of the largest issuers of structured notes in the world, issued and sold 2.7 billion in structured notes. Structured notes are securities issued…
Michael S. Bell, a Stockbroker with Westpark Capital, was suspended from association with all Financial Industry Regulatory Authority (FINRA) member firms after consenting to findings that he violated his firm’s written supervisory procedures in sending e-mails that were unbalanced, promissory, and misleading. Letter of Acceptance, Waiver, and Consent No. 2014041848801 (Apr. 30, 2015). Westpark Capital…
Jeffrey D. Daggett, a Stockbroker with Wells Fargo Advisors, received a four-month suspension from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity, as well as a $20,000.00 fine after consenting to findings that he recommended unsuitable transactions in exchange trade notes, as well as leveraged and inverse leveraged exchange traded…
Joseph R. Butler, a Stockbroker with Woodbury Financial Services, Inc., was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member firm after the National Adjudicatory Council confirmed a Hearing Panel Decision barring Butler for converting customer’s funds and submitting a false annuity beneficiary change request. In the Matter of Department of Enforcement…
Daniel P. Glavin, a Stockbrokerwith Country Capital Management Company, was recently barred in all capacities from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that Glavin had obstructed a FINRA investigation and had converted approximately $45,000 in customer funds. Letter of Acceptance, Waiver, and Consent, No. 2015044416501 (Mar. 31, 2015)….
Robert Charles Mangold, a Stockbrokerwith LPL Financial LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) registered firm after consenting to findings that he failed to cooperate with FINRA in their investigation into allegations that Mangold borrowed funds from a customer in violation of his firm’s policy. Letter of Acceptance, Waiver,…
Paul Joseph Godlewski, a Stockbroker with Allstate Financial Services, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that he engaged in unapproved outside business activities and failed to follow his firm’s…
Jon L. Cox, a Stockbrokerwith LPL Financial, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that Cox had violated his firm’s policies concerning outside business activities. Department of Enforcement v. Jon L. Cox, No. 2014040234701…
Sylvester King Jr., a Stockbroker with Morgan Stanley Smith Barney LLC, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities for eighteen months and fined $35,000 after consenting to findings that he circumvented his firm’s policies and procedures, made an unauthorized loan to a customer, and engaged…
Michael A. Lovett, a compliance officer with Cape Securities, Inc., was suspended from association in a principal capacity with any Financial Industry Regulatory Authority (FINRA) member firm and fined $5,000 after consenting to findings that he failed to adequately supervise the establishment of the firm’s supervisory system to detect and prevent conversion of customer funds….
Michael DeMaria, a Stockbroker with Northwestern Mutual, was suspended from association with any Financial Industry Regulatory Authority (FINRA) member in all capacities for twenty months and fined $15,000 after consenting to findings that he caused a transfer of a firm client’s funds without her knowledge or consent, in violation of FINRA Rule 2010. Letter of…
Blue Capital Securities, a broker dealer with its primary office in New York, New York, was censured and fined $50,000 after accepting and consenting to Financial Industry Regulatory Authority (FINRA) findings that the firm provided misleading marketing materials by failing to disclose risks and failed to educate staff on collateralized mortgage obligations (CMO) prior to…
Michael Tepedino, a Stockbroker for Allstate, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he failed to cooperate with FINRA in their investigations into allegations that Tepedino was involved in outside business activities. Letter of Acceptance, Waiver, and Consent, No. 2014042533801 (June…
Vicki Smith, a Stockbrokerwith Country Capital Management Corp, was permanently barred in all capacities with any Financial Industry Regulatory Authority (FINRA) firm after consenting to findings that she engaged in undisclosed outside business activities and converted funds from a customer. Letter of Acceptance, Waiver, and Consent, No. 2013037426001 (June 5, 2015). Smith is barred from…
Patrick Landon Garrett, a Stockbrokerwith Robert W. Baird & Co. Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made verbal misrepresentations to a customer, misused customer funds, and falsified firm documents. Letter of Acceptance, Waiver, and Consent, No. 2014040147501 (Aug….
Malcolm Jamal Babin, a Stockbrokerwith PFS Investments, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he had failed to cooperate with a FINRA investigation into allegations that Babin had converted customer funds. Letter of Acceptance, Waiver, and Consent No. 20150454876-01 (July 30, 2015). Babin…
Troy Mackey, a Stockbrokerwith Morgan Stanley, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that Mackey failed to cooperate in FINRA’s investigation into allegations that Mackey converted funds from two minor relatives. Letter of Acceptance, Waiver, and Consent, No. 4466980. (July 16, 2015). Mackey is barred…
Christopher Yoon, a Stockbrokerwith Pruco Securities, LLC, was permanently barred by Financial Industry Regulatory Authority (FINRA) after consenting to findings that he lied about a life insurance beneficiary to obtain a signed blank check and forged or caused to be forged customer signatures on life insurance documents and application related materials. Letter of Acceptance, Waiver,…
Andre Paul Young, a registered representative with MetLife Securities, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he improperly borrowed $208,000 in funds from customers in violation of his firm’s policies, and failed to cooperate with a FINRA investigation into allegations of…
Armen Bahadourian, a registered representative with UnionBanc Investment Services, LLC, was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacities for eighteen months in addition to being fined $10,000 and disgorged of $6,880.75 in commissions after consenting to findings that he executed fifteen unauthorized transactions in the accounts of…
Terri Lynn Anderson, a registered representative with Cetera Financial Specialists, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that Anderson had failed to provide information and documentation in connection with an investigation into allegations that Anderson played a part in misusing customer…
Rice Alexander Jacobs, a registered representative with TD Ameritrade, Inc., was permanently barred by Financial Industry Regulatory Authority (FINRA) for failing to provide information and documentation in connection with an investigation into allegations that Jacobs converted a local organization’s funds. Letter of Acceptance, Waiver, and Consent No. 20150439952 (Mar. 11, 2015). According to the AWC,…
Kirsten Flynn Hawkins, a registered representative with SunTrust Investment Services, Inc., was permanently barred by Financial Industry Regulatory Authority (FINRA) for failing to provide information and documentation in connection with an investigation into allegations that Hawkins stole funds from her firm’s customer. Letter of Acceptance, Waiver, and Consent No. 20149437894 (Mar. 23, 2015). According to…
Louis James Deeley, a registered representative with JPMorgan Chase Bank, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that Deeley converted $24,014 from a firm customer’s bank account for his own use and benefit. Letter of Acceptance, Waiver, and Consent No. 20140437239…
Kamran Daryush Nougzust, a registered representative with Wells Fargo Advisors, was permanently bared from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after failing to provide information and documentation requested by FINRA in connection with an investigation into Nougzust’s alleged conversion of a bank’s trust funds. Letter of Acceptance, Waiver,…
Daniel Gregory Retzke, a registered representative with Edward D. Jones & Co., L.P., was permanently bared from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after failing to provide information and documentation requested by FINRA in connection with an investigation into Retzke’s alleged private securities offerings. Letter of Acceptance, Waiver,…
Miguel Ortiz, a registered representative with John Thomas Financial, was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Ortiz willfully defrauded customers in violation of Section 10(b) of the Securities Exchange Act of 1934, along with willfully failing to disclose a $4,983,606.23 judgment against him on his Uniform Application for Securities…
Brian Scott Exford, a registered representative with IBN Financial Services, Inc., was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after failing to appear for on-the-record testimony in connection with an investigation into allegations that Exford engaged in a private securities transaction. Letter of Acceptance, Waiver,…
Tricia Denise Willis, a registered representative with People’s Securities, Inc., was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that she converted funds from a customer of her firm and forged a customer’s signature without authorization. Letter of Acceptance, Waiver, and Consent No. 20130392989…
Ralph W. Savoie, a registered representative with Cambridge Investment Research, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any and all capacities after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that Savoie misappropriated in excess of $665,000.00 from a firm customer….
Jeffrey A. Mohlman, a registered representative with Questar Capital Corporation, was permanently barred in all capacities from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to allegations that he had failed to cooperate with FINRA’s investigation into allegations that Mohlman engaged in unapproved and undisclosed private securities transactions. Letter of Acceptance, Waiver,…
Aldo Comuzzi, a registered representative with Dawson James Securities Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he failed to cooperate with a FINRA investigation in connection with allegations that Comuzzi improperly utilized discretion without written approval in certain of…
Lombard Securities Incorporated was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that the firm failed to meet a myriad of supervisory responsibilities including written supervisory procedures designed to supervise the sale of leveraged, inverse, and inverse-leveraged exchange traded funds, prevent unsuitable mutual fund switching, and apply sales charge discounts to customers’…
UBS Financial was censured, fined $7,500,000.00, and ordered to pay restitution to 165 customers in the amount of $10,978,402.00 after the firm consented to Financial Industry Regulatory Authority (FINRA) findings that it failed to establish and maintain a supervisory system and procedures reasonably designed to ensure suitability of transactions in closed end funds. Acceptance, Waiver,…
Jeffrey E. Rodgers, a registered representative with Morgan Stanley, was charged by the Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Rodgers accepted an unauthorized customer loan, engaged in outside business activities, made false statements on an annual compliance questionnaire, and failed to provide documentation and information to FINRA pursuant to Rule 8210….
Andre Mitchell, a registered representative with MetLife, was permanently barred from associating with any FINRA member firm in any capacity after Financial Industry Regulatory Authority’s Office of Hearing Officers found Mitchell to have converted customer funds in addition to failing to cooperate in a FINRA’s investigation. Department of Enforcement v. Mitchell, No. 2013035618602 (Sept. 28,…
The National Adjudicatory Council for the Financial Industry Regulatory Authority (FINRA) just upheld a Hearing Panel Decision to bar Fuad Ahmed from associating with any FINRA member firm in any capacity as well as upholding the expulsion of his firm, Success Trade Securities, after finding that the respondents willfully engaged in securities fraud and selling…
Royce O. Simpson, a registered representative with Oppenheimer & Co. Inc., was suspended from association with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity and faced a $15,000.00 fine after consenting to findings that he engaged in outside business activities without approval of his firm, while also failing to timely respond to…
Matthew Roger Quinn, a registered representative with Fifth Third Bank, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after failing to provide on-the-record testimony in connection with an investigation into allegations that Quinn had stolen funds from elderly customers. Letter of Acceptance, Waiver, and Consent, No….
Bart James Ellis, a registered representative with Ameriprise Financial Services, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) firm in any capacity after FINRA’s Office of Hearing Officers rendered a Default Decision finding that Ellis had falsified customer account documents, exercised unauthorized discretion in a customer’s account, and failed to…
Jordon S. Trice, a registered representative with Great Circle Financial, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint containing allegations that Trice had effected options transactions in an account that was not approved for options trading. Department of Enforcement v. Trice, No. 2012030670603. According to the Complaint, from January…
Tammy C. Peterson, a registered representative for Merrill Lynch, Pierce, Fenner & Smith, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to FINRA findings that Peterson had converted approximately $107,378 from four of her firm’s customers for her own personal benefit and use. Letter…
Sam M. Stull, a registered representative for J.P. Morgan Securities LLC, was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member firm in all capacities after consenting to findings that Stull forged the signatures of several customers and failed to cooperate with FINRA in their investigation into allegations of Stull’s misconduct. Letter…
Daniel Hillius, a registered representative with Wells Fargo Advisors, LLC, was permanently barred from association with any FINRA member firm in any capacity after consenting to Financial Industry Regulatory Authority (FINRA) findings that he misappropriated and forged another person’s check while converting funds for his own benefit. Letter of Acceptance, Waiver, and Consent No. 2014041988001…
Louis Karl Kittlaus, a registered representative with Wall Street Strategies, Inc., was suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity, fined $25,000, and ordered to requalify by examination in order to become registered in any capacity in the securities industry according to an Extended Hearing…
James Alexander Torres, a registered representative with Global Arena Capital Corp., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to FINRA findings that Torres made material misrepresentations and omitted material facts in connection with securities transactions, excessively traded and churned customer accounts, and engaged in unsuitable recommendations of…
Richard Edward Bohack, a trading and operations principal with Global Arena Capital Corp., was permanently barred form associating with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity after consenting to findings that Bohack had failed to appropriately provide supervision of brokers at Global Arena’s sixth avenue branch firm, which included the failure…
Kevin Edward Hagan, a trading and operations principal with Global Arena Capital Corp, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity and fined $15,000 in connection with findings that Hagan had failed to appropriately discharge his responsibilities as supervisor for his branch, including failures as designated…
Edmond J. Harris, a registered representative with Ladenburg Thalman & Co. Inc., was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that Harris failed to cooperate with an investigation into allegations that Harris engaged in improper discretionary trading in client accounts. Letter of Acceptance, Waiver, and…
Robert C. Marrone, a registered representative with Morgan Stanley, was permanently barred form association with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to FINRA findings that Marrone failed to cooperate in an investigation into allegations that Marrone engaged in unauthorized trading and discretion without authorization in client accounts. Letter of…
Willard L. Golightly, a principal with WFG Investments, Inc., was permanently barred from association with a Financial Industry Regulatory Authority (FINRA) member firm in all principal capacities and barred from associating with a FINRA firm in all capacities for three months after consenting to findings that Golightly had failed to properly supervise sales practices of…
Raymond Daniel Schmidt, a registered representative with LPL Financial, LLC, was permanently barred from association with any Financial Industry Regulatory Authority (FINRA) regulated broker-dealer in any capacity after consenting to findings that he engaged in prohibited customer loans, undisclosed outside business activities, made false statements to a FINRA broker-dealer, and failed to cooperate with regulators…
Anthony Warren Thompson, chief executive officer and sole member of Thompson National Properties, LLC (of which TNP Securities was a wholly owned subsidiary), was permanently barred by the Financial Industry Regulatory Authority and forced to pay restitution to investors on terms addressed in a Extended Hearing Panel Decision containing findings that Thompson made material omissions…
Alejandro Federico Marin Aigster, a registered representative with Mercantil Commercebank Investment Services, was permanently barred by the Financial Industry Regulatory Authority (FINRA) after consenting to findings that he failed to respond to requests for information and documentation concerning their investigation into allegations of Marin’s misconduct concerning an unauthorized loan with a firm customer. Letter of…
Christopher Frederic Veale, a registered representative who worked at eighteen brokerage firms in 18 years, 7 of which were expelled by FINRA, was charged by the Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Veal failed to provide written documentation, information, and on-the-record testimony concerning an investigation into potential violations of securities laws….
Alex P. Anderson, a registered representative with Cetera Financial Services, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he misused at least $75,000 from one of his firm customer’s retail bank accounts for his own benefit. Letter of Acceptance, Waiver, and…
Philip Earl Brunson, a registered representative with PNC Investments and Wells Fargo Advisors, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he failed to cooperate with their investigation in connection with allegations that Brunson converted customer funds. Letter of Acceptance,…
Ronald Dunn, a registered representative with Pruco Securities, LLC, was permanently barred by from associating with any Financial Industry Regulatory Authority (FINRA) registered firm after consenting to findings that he had failed to cooperate in an investigation in connection with Dunn’s alleged conversion of customer funds. Letter of Acceptance, Waiver, and Consent, No. 2014042095201 (Apr….
Giovanni L. Acevedo, a registered representative with ING, has been charged by the Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Acevedo stole in excess of $160,000 in customer funds from three clients of the firm for Acevedo’s personal use, while also falsifying information to FINRA regulators during an investigation into Acevedo’s conversion…
James E. Scott, a registered representative with FSC Securities Corp., was permanently barred from associating with any Financial Industry Regulatory Authority in any and all capacities via terms of an Order Accepting Offer of Settlement containing allegations that Scott had aided and abetted an individual in the sale and recommendation of certain unauthorized securities transactions,…
Andre Mitchell, a registered rep from MetLife Securities, Inc., was charged by the Financial Industry Regulatory Authority in a Complaint alleging that Mitchell misappropriated monies provided to him by an insurance customer. Department of Enforcement v. Andre Mitchell, No. 2013035618602 (Apr. 20, 2015). According to the Complaint, Mitchell was being investigated by FINRA after his…
Douglas William Finlay, Jr., a registered representative with Cadaret Grant, was suspended, fined, and forced to pay disgorgement by the Financial Industry Regulatory Authority after consenting to findings that Finlay engaged in an unsuitable recommendation and execution of a faulty transaction in his firm’s customer account. Letter of Acceptance, Waiver, and Consent, No. 2013035576601 (Apr….
Simon Xi, a registered representative with Bedrok Securities was permanently barred from associating with a Financial Industry Regulatory Authority member in any capacity after consenting to Financial Industry Regulatory Authority’s findings that he had recklessly or knowingly made false statements of material facts to customers purchasing or selling fixed-income securities. Letter of Acceptance, Waiver, and…
Brantly Chavis, a OneAmerica registered representative, was permanently barred from associating with any Financial Industry Regulatory Authority member in any capacity after accepting and consenting to Financial Industry Regulatory Authority’s findings that Chavis had converted funds from a customer. Letter of Acceptance, Waiver, and Consent No. 2014042234401 (Sept. 2, 2015). According to the AWC, Chavis…
Daniel R. Colon, a JP Morgan Chase Bank registered representative, was permanently barred from associating with any Financial Industry Regulatory Authority member in any capacity after stealing money from a customer of Chase Bank. Letter of Acceptance, Waiver, and Consent No. 2014043421201 (May 12, 2015). According to the AWC, one of the bank’s customers accidentally…
Audrey Helmstetter, a branch service associate for UBS Financial Services, was permanently barred from association with any Financial Industry Regulatory Authority member in any capacity after consenting to findings that she converted a customer’s funds. Letter of Acceptance, Waiver, and Consent No. 2014042389701 (May 5, 2015). According to the AWC, Helmstetter was a non FINRA-registered…
Lee W. Walker, a fixed income trader with Goldman Sachs International, was permanently barred from association with the Financial Industry Regulatory Association in any capacity based upon a finding that Walker mislead his firm regarding an investigation into unlawful trading. Department of Enforcement v. Lee W. Walker, No. 2013038196601 (May 4, 2015). According to the…
Michael John Dell’ Olio, a broker with North Atlantic Securities was permanently barred from association with Financial Industry Regulatory Association finding that Dell `Olio failed to cooperate with an investigation into potential violations of federal securities laws. Department of Enforcement v. Michael John Dell’ Olio, No. 2012034939302 (May 4, 2015). FINRA’s Department of Enforcement had…
William Oscar Hardy, a NYLife Securities, was permanently barred by Financial Industry Regulatory Association (FINRA) after consenting to findings that he misused customer insurance premium funds. Letter of Acceptance, Waiver, and Consent No. 2014039881901 (May 4th, 2015). According to FINRA, Hardy was employed with NYLife Securities LLC in May, 2002 through February 21, 2014. The…
Nicholas Harper, a registered representative with Wells Fargo Advisors, LLC, was permanently barred from the securities industry for life after consenting to findings that he failed to cooperate with an investigation into discretionary trading activities. Letter of Acceptance, Waiver, and Consent No. 2013038203401 (May 13, 2015). According to the AWC, Harper was employed with Wells…
Avenir Financial Group, a brokerage firm headquartered in New York with approximately two dozen brokers operating from eight branch offices. The firm, along with Michael Clements and Karim Ahmed Ibrahim, were named in a FINRA Complaint where the Department of Enforcement has alleged that they have committed fraud via sale of promissory or equity notes,…
Robert Neil Tricarico, formerly a general securities representative with LPL Financial, LLC, was permanently barred from associating with any FINRA member in any capacity after failing to provide information and documentation requested by FINRA in connection with an investigation into allegations that Tricarico converted customer funds. FINRA Letter of Acceptance, Waiver, and Consent No. 2014043719001…
Mark Douglas Weindling, a former JHS Capital Advisors, LLC registered representative, was permanently barred from associating with any FINRA member in any capacity after consenting to FINRA findings that he failed to provide information and documents pursuant to a FINRA investigation into allegations of unauthorized transactions. FINRA Acceptance, Waiver, and Consent No. 2014041259001 (Apr. 22,…
Carolina Financial Services, a FINRA member since 1997 headquartered in Brevard, North Carolina, engages in private placement offerings via 15 registered reps operating out of 4 locations. The firm and Bruce Victor Roberts (the firm’s founder, CEO, and COO) were charged by FINRA’s Department of Enforcement in a Complaint alleging fraudulent misrepresentations and omissions in…
Meyers Associates, L.P., a FINRA member since 1994 headquartered in New York, NY, engages in general securities business via 70 registered reps operating out of 12 branch offices. The firm, along with George Johnson (investment banking representative), Christopher Wynne (general securities principal), and Mahalick (general securities and investment banking representative), were charged by FINRA’s Department…
Richard Ohrn, a former general securities rep with Wells Fargo Advisors, LLC, was permanently barred from associating with any FINRA member capacity after consenting to FINRA findings that Ohrn had converted customer funds, forged/falsified documents, caused his firm’s records and books to be false, and guaranteed a customer against financial loss. FINRA Department of Enforcement…
Aaron R. Parthemer, a former financial advisor with Wells Fargo Advisors, LLC, was permanently barred from association with any FINRA member in any capacity after consenting to FINRA findings that he engaged in unapproved outside business activities, unlawful loans to customers, private securities transactions, false written responses to FINRA pursuant to 8210 requests, and false…
RBC Capital Markets, LLC, a FINRA member broker-dealer since 1993 headquartered in New York, offers dealing, underwriting, asset management, and brokerage services to the public via 5,300 registered reps operating out of 280 branches. The firm was censured, fined $1M, and ordered to pay $433,898.10 in restitution after consenting to FINRA findings that the firm…
Tiffany Danielle Peacock-Asakawa, a former general securities representative with both Raymond James Financial Services, Inc. and Merrill Lynch, was suspended for 10 months from associating with any FINRA-regulated firm in any capacity, while also being subject to a $15,000 fine after consenting to FINRA findings that she had executed trades for customers without being licensed,…
Leonard Allen Goldberg, a former registered representative with both J.P. Turner & Company, LLC, as well as Newport Coast Securities, Inc., has been charged by FINRA’s Department of Enforcement in a Complaint alleging Goldberg engaged in multiple forms of securities fraud; unsuitable mutual fund switching/trading; exercising of discretion without written authorization; falsification of electronic records,…
Bryan Carnahan, a former general securities representative with Huntington Investment Company, was permanently barred from associating with any FINRA member in any and all capacities after consenting to FINRA findings that Carnahan had misappropriated $169,500 from his former firm’s customer. FINRA Letter of Acceptance, Waiver, and Consent No. 2015044908301 (May 1, 2015). According to the…
John Michael Bannon, a former general securities representative with Ausal Financial Partners, Inc., was permanently barred from associating with any FINRA member in any and all capacities after failing to appear for an on-the-record interview in connection with FINRA’s investigation into allegations from a civil complaint which claimed Bannon had converted a minimum of $74,000…
ARI Financial Services, Inc., a FINRA member firm since 2005 headquartered in Kansas, sells private placements directly to investors among other securities via 30 registered reps operating out of 5 branch offices. The firm, along with president and CCO William Candler, were charged by FINRA’s Department of Enforcement in a Complaint alleging various supervisory failures…
The Securities and Exchange Commission brought an action against Bennett Group and its founder Dawn J. Bennett for federal securities fraud. Bennett and most employee associated with the Bennett Group are registered representatives of with Western International Securities, Inc. According to the SEC’s allegations, Bennett, made material misstatements and omissions regarding assets that were purportedly…
Thomas Morley Hogle, a general securities representative formerly associated with B.B. Graham & Company, was permanently barred from association with any FINRA member firm in any capacity after failing to cooperate with a FINRA investigation into allegations that Hogle made unsuitable investment recommendations in his former firm’s account of an elderly customer. FINRA Letter of…
Adam Robert Bollinger from Chandler, Arizona, a former general securities representative with Edward Jones, was permanently barred from association with any FINRA member firm in any capacity after consenting to FINRA findings that Bollinger converted $17,525 from 7 individuals (6 of whom were his firm customers). FINRA Letter of Acceptance, Waiver, and Consent, No. 2015044164801…
Alejandro Ariel Torres, a former general securities representative with Global Strategic Advisors, was permanently barred from association with any FINRA member and ordered to pay restitution of nearly $60,000 to a former customer after consenting to FINRA findings that Torres stole funds from his customers, engaged in outside business activities, falsified firm documents regarding outside…
Phillip Leonard Grasso, formerly a representative of Allstate Financial Services, was permanently barred in any and all capacities with a FINRA regulated entity after FINRA’s Office of Hearing Officers rendered a Default Decision finding that Grasso had misused and converted client funds in violation of FINRA Rules 2010 and 2150(a), engaged in securities fraud in…
Richard Ernest Griffin of Cleveland Ohio, a former general securities representative with Financial America Securities, Inc., was permanently barred in any and all capacities with a FINRA regulated entity after failing to appear and provide testimony in connection with a FINRA investigation into Griffin’s outside business activities. FINRA Letter of Acceptance, Waiver, and Consent No….
Cape Securities, Inc., a FINRA member since 1976 headquartered in McDonough, GA, offers brokerage services via 118 registered reps via its 20 branch offices and 79 non-registered offices. The Firm was censured and fined $125,000 after consenting to FINRA findings that the firm failed to establish and enforce adequate supervisory systems to detect/prevent fraudulent wires…
LPL Financial LLC, a FINRA member since 1973 headquartered in Boston, MA, conducts general securities business via 18,343 registered reps operating out of roughly 10,702 registered branch offices and 18,396 non-registered office locations. The firm was censured and fined $10M after consenting to FINRA’s findings concerning the firm’s failure(s) to adequately supervise ETF, variable annuity,…
Bradley Claus of Greenwood Village, CO, a former securities broker with Transamerica Financial Advisors, Inc., was permanently barred from association with any FINRA-registered firm in all capacities after FINRA found that Claus had made material misrepresentations via his securities sales efforts, along with participating in private securities transactions not approved by his former firm, in…
Broker Dealer Financial Services Corp. (“BDFS”), a FINRA member since 1979 headquartered in West Des Moines, Iowa, provides brokerage services throughout the United States via 270 of its registered reps operating out of 130 branch offices. BDFS was censured and fined for $75,000 by FINRA after consenting to FINRA findings regarding the firm’s failures in…
Cadaret, Grant & Co., Inc., a FINRA member headquartered in Syracuse, NY, offers brokerage services to customers via roughly 935 registered reps throughout over 500 branch offices, and provides a majority of its reps the opportunity to offer insurance to investors not provided via the brokerage firm. The firm was censured and fined $75,000 by…
Anthony Diaz of Scotrun, PA, formerly a financial planner with IBN Financial Services, was permanently barred from association with any FINRA registered firms after consenting to FINRA allegations that Diaz engaged in unsuitable variable annuity exchanges, deceptively used falsified financial information and dates, committed fraud in connection with alternative investments, falsified books and records, engaged…
Francesco Puccio of Pittsford, NY, a former general securities principal and registered rep with Cambridge Investment Research, was permanently barred from association with any FINRA-registered firm in all capacities after failing to cooperate with FINRA’s investigation into allegations that Puccio converted funds from a non-firm customer. FINRA Letter of Acceptance, Waiver and Consent, No. 2015046238101…
Derek Lee Miller of Redondo Beach, CA, a former general securities representative with Securities America, Inc., was permanently barred from association with any FINRA-registered firm in all capacities after failing to appear for on-the-record testimony in connection with FINRA’s investigation into allegations that Miller engaged in unsuitable trading. FINRA Letter of Acceptance, Waiver and Consent,…
Kenneth E. Crosser of Ottumwa, Iowa, a former registered representative with Girard Securities, Inc., was permanently barred from association with any FINRA-registered firm in all capacities after failing to appear for on-the-record testimony in connection with FINRA’s investigation into allegations that Crosser engaged in sales of structured settlement cash flow instruments to multiple investors without…
Glenn A. Moffitt of Henderson, NV, a former general securities representative with Cambridge Investment Research, Inc., was permanently barred from association with any FINRA-registered firm in all capacities after failing to appear for on-the-record testimony in connection with FINRA’s investigation into allegations that Moffitt converted $370,000 from a customer. FINRA Letter of Acceptance, Waiver, and…
Walter Chao of San Mateo, CA, a former general securities principal with LPL Financial, was dealt a 2 year suspension from associating with any FINRA member in any capacity, a $30,000 fine, and lost his FINRA certifications after accepting and consenting to FINRA findings alleging that Chao had sold away from LPL, provided misleading and…
Roman Tyler Luckey of Irvine CA, a former registered principal with Newport Coast Securities, Inc., was fined $15,000 and suspended for practicing for 14 months by FINRA’s National Adjudicatory Council after consenting to FINRA sanctions and findings concerning Luckey’s failure to properly supervise his staff which led to his subordinates excessively trading and churning 24…
SWS is a FINRA member firm who at one point had in excess of 300 registered representatives operating out of various offices throughout the United States selling variable annuities among other investments to customers. On August 13, 2015, the firm concerning tax deferred variable annuities – violating FINRA Rules 2010, FINRA Rule 2030, and NASD…
Charlotte A. Guin of Houston TX, a former general securities representative with J.P. Morgan Securities LLC, was barred from association with any FINRA-registered firm in all capacities after failing to provide information and documentation in connection with FINRA’s investigation into allegations that Guin converted the funds of a non-Firm customer. FINRA Letter of Acceptance, Waiver,…
Michael R. Highfill from Ridgeland, Misssippi, a former general securities representative and general securities sales supervisor with Merrill Lynch, Pierce, Fenner & Smith Inc., was barred from association with any FINRA-registered firm in all capacities after failing to provide information and documentation in connection with FINRA’s investigation into allegations that Highfill solicited and had accepted…
J.H. Darbie & Co, Inc. (“Darbie”), a FINRA member since 1998 headquartered in New York City, offers securities business via 59 registered reps between its NY and NJ locations. Wolf A. Popper, Inc. (“Popper”), a FINRA member since 1998 located in NY, is an affiliate of Darbie which share Darbie’s ownership and control. On August…
Three individuals from Maryland agreed to settle SEC charges that they had defrauded investors in a company owning and operating commercial and residential real estate, in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5, where at least one of…
Edward Jones, a FINRA member brokerage firm and SEC investment advisor headquartered in St. Louis, MO, settled with the SEC for north of $20M after the firm was alleged by the SEC to have overcharged customers within their municipal bond business along with failing to supervise the review of municipal bonds trading in the secondary…
FSC Securities Corp. of Atlanta, Georgia, a FINRA member brokerage firm and investment advisor firm registered with the SEC, is responsible for paying eight investors an award collectively totaling more than $1.2M via a FINRA’s arbitration panel decision after claimants alleged violations of FINRA Conduct Rule 3010, respondent superior/agency by estoppel, and violations of the…
Louis Anthony Tinoco Jr. formerly associated with Barclays Capital was barred from the securities industry for life as a result of his failure to cooperate with an investigation by the Financial Industry Regulatory Authority. FINRA’s Findings FINRA found that Tinoco during his association with Barclays Capital engaged in fraud by providing at least one customer…
Between August 2005 and July 2012, Wells Fargo Advisors, together with its predecessor, Wachovia Securities sold more than $12 million of Structured Repackaged Asset-Backed Trust Securities or “STRATS” to its retail customer. Structured Repackaged Asset-Backed Trust Securities Structured Repackaged Asset-Backed Trust Securities are a complex structured product who return is based upon a floating rate based…
Jack Allen Scherbert of Sparks Nevada was barred by the Financial Industry Regulatory Authority or for life following his failure to cooperate, as required by FINRA Rules, in connection with its investigation that Scherbert made false guaranties regarding return of interest and principal to Wells Fargo Advisors customers in connection with the recommendation and sale…
Nationwide Planning Associates is based in Paramus, New Jersey and has approximately twenty-five registered branch offices and about sixty-nine registered representatives. The FINRA Disciplinary Action However, according to a recent disciplinary action, Nationwide settled with the Financial Industry Regulatory Authority, it was found or otherwise agreed that at least between March 2010 and May 2012,…
J.P. Turner & Co, recently acquired by Cetera, has over 360 registered representatives and over 150 branch offices nationwide. J.P. Turner’s history with securities regulators is substantial. For example, in December 2013, J.P. Turner consented to a sanction consisting of a censure and restitution in the amount of almost $1 million for the failure to…
FSC Securities is a “franchise” broker-dealer, purports to be America’s largest networks of independent advisors, with more than “1,500 financial advisors” operating from more than 238 geographically dispersed “independent” branch offices “across the United States. FSC Securities is also part of the AIG Advisory Group Barry G. Hartman Until March 2013, Barry G. Hartman was…
Signator Investors, Inc. former stockbroker James R. Glover of White Hall, Maryland has been found, pursuant to a final order issued by the United States Securities & Exchange Commission, to have defrauded at least 125 clients or brokerage customers in connection with the sale of the securities of Colonial Tidewater Realty Income Partners, LLC. Glover is…
LPL purports to be “America’s No. 1 independent brokerage firm – with more than 17,601 registered representatives, based in 1,800 branch offices nationwide.” From at least August 2007 through sometime in 2012, Walter Chao was the branch manager of a San Mateo office of LPL Financial. According to FINRA According to the Financial Industry Regulatory…
Julius F. Kenney IV, formerly associated with the Calhoun Georgia office of LPL Financial, Inc., was barred last month by the Financial Industry Regulatory Authority for the failure to cooperate with FINRA in connection with the investment of $215,000 by one of his customers in his Mellow Mushroom business. Kenny Was Terminated by LPL Financial…
Roy Rogers, a wholly owned subsidiary of the Marriot Host Corporation, is commonly known as the purveyor of the Double R Bar Burger, which in fact is a hamburger topped with ham. It is quite delicious, particularly when topped with Texas style barbeque sauce. However, except at isolated rest stops on the New Jersey…
Next to stealing a customer’s investments, the next best thing is to sell the customer a promissory note. A promissory note, more commonly known in this context as an IOU, is a promise to pay typically interest and principal by a date certain, subject of course to the creditworthiness of the issuer. Promissory Notes According…
Raymond Dickie Adcock, of Cabot Arkansas, also known, at least according to FINRA Public Disclosure Records as Dick Adcock, formerly associated with Regal Securities, Inc., of Glenview Illinois, was barred last month by the Financial Industry Regulatory Authority based upon the admission that he misappropriated $10,000 in customer funds generated by a private placement offering…
There is an old saying, “investors do not buy variable annuities, investors are sold variable annuities.” Along with this, ought to come the saying that a broker never met an annuity sold by another firm that he or she did not like.” Variable annuities are securities and are a notorious vehicle for abusive sales practices….
Stealing or the conversion of customer funds is never a good idea, and in fact it is illegal. However, in response to an investigation by the Financial Industry Regulatory Authority that he did just that, Ft. Meyers based, Raymond James & Associates stockbroker Mark A. Bullivant, with the benefit of counsel, of course, decided that…
Citigroup Alternative Investments LLC is a subsidiary of Citigroup Global Markets Inc., and between 2002 and 2008, they raised approximately $2.898 billion from approximately 4,000 investors into two now-defunct hedge funds—the ASTA and MAT funds (“ASTA/MAT”) and the Falcon Strategies funds (“Falcon”). These funds were recommended and sold by two groups of individuals, the “financial…
Bolton Global Capital, Inc., a FINRA member since 1984 headquartered in Bolton, MA, conducts general securities business, including mutual funds, bonds, stocks, options, and variable annuities, via 115 of the Firm’s registered representatives within 53 of the Firm’s branch offices. The Firm was censured and fined $35,000 in connection with allegations the Firm had failed…
Richard Eugene Whitley, a former H.D. Vest general securities representative, was barred from association with any FINRA registered firm in all capacities after Whitley failed to cooperate with a FINRA investigation into allegations of that Whitley, while employed at his former firm, engaged in unsuitable trading in customer accounts. Letter of Acceptance, Waiver and Consent…
John Joseph Vaughan, a former registered securities representative and compliance manager with HFP Capital Markets, LLC., was barred from association with any FINRA registered firm in all capacities after Levitt failed to cooperate with a FINRA investigation into allegations that HFP Capital Markets had charged customers unfair prices and failed to provide adequate supervision of…
Global Arena Capital Corp, a FINRA member broker-dealer since 1986 headquartered in New York, NY, maintains multiple branches throughout the country. The Firm was charged by FINRA Department of Market Regulation in a Complaint containing allegations that the Firm charged unfair and excessive markups/markdowns to customers in the course of 495 of its corporate bond…
Morgan Stanley Smith Barney, a FINRA member since 2009, is a publicly held company that engages in general securities business via 24,000 registered representatives working out of roughly 850 branch locations. The Firm was censured and fined $65,000 by FINRA Department of Enforcement in connection with allegations that the Firm had failed to establish and…
E1 Asset Management, Inc., a FINRA member broker/dealer since 1999 headquartered in Jersey City, NJ, operates as an introducing broker-dealer via 14 registered reps and 3 branch offices. The Firm, along with their general securities principals Ron Y. Itin and Ahsan R. Shaikh, were censured and fined by FINRA in connection with supervisory deficiencies consisting…
Elise Joy Williams, a former representative with Farmers Financial Solutions, LLC, was barred from association with any FINRA-registered firm in all capacities after the Department of Enforcement found that Elise Joy Williams, in violation of FINRA Rule 2010, issued roughly 100 fabricated homeowner’s policies and collected nearly $67,000 in commission payments as a result. Letter…
Nationwide Planning Associates, a FINRA member firm since 1993 headquartered in Paramus, NJ, conducts general securities business via its 25 registered branch offices and employment of 69 registered representatives. The Firm, in proposing settlement of rule violations alleged by FINRA without admitting or denying the findings, consented to a FINRA censure and fine of $55,000…
David Levin, “Investment Talk” radio host and former FINRA registered representative with Titan Securities, was just fined $25,000, suspended for 6 months, and lost his qualifications as a general securities representative by FINRA in connection with consenting to FINRA findings that Levin, via his broadcast, made statements deemed to be promissory, misleading, unbalanced, or lacking…
Rasheed Adams of New York, a prior representative for Caldwell International Securities, was barred from association with any FINRA-registered firm in all capacities after failing to provide FINRA with requested documentation in connection with allegations that Adams engaged in excessive and unsuitable churning and trading in customer accounts, while also failing to disclose a total…
Thomas J. Buck, a former Indiana based financial advisor associated with RBC Capital Markets, LLC, was barred from association with any FINRA-registered firm in all capacities after consenting to FINRA findings containing allegations Buck committed misconduct pertaining to commission-based accounts and unauthorized trading and exercise of discretion without oral or written authorization. FINRA Letter of…
General securities representatives Timothy Stephen Dembski and Walter Francis Grenda Jr., both former employees with Mid Atlantic Capital Corporation (“MACC”) in Cheektowaga, NY, were charged by FINRA’s Department of Enforcement in a Complaint containing allegations that the individuals engaged in fraudulent misrepresentations and omissions in violation of Section 10(b) of the Securities Exchange Act of…
Barry Graham Armstrong from Needham Heights, MA, a financial advisor with Securities America, Inc. and Armstrong Advisory Group, were charged by the Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth in a Complaint alleging Armstrong had engaged in a misleading and dishonest advertising campaign in violation of…
Michael J. Talin of Seal Beach, CA, a former general registered representative with Woodbury Financial Services, was barred from association with any FINRA-registered firm in all capacities after failing to appear for an on-the-record interview in connection with FINRA’s investigation of allegations that Talin converted monies from the non-securities account of a customer. FINRA Letter…
Red River Securities, LLC., a FINRA member firm from December 8, 2009, from March 5, 2014, operating out of Dallas, TX, employed roughly 14 registered representatives in its broker/dealer capacity. The Firm, along with it’s CEO Brian Keith Hardwick, were charged by FINRA’s Department of Enforcement in a Complaint alleging a myriad of significant violations…
Halcyon Cabot Partners, Ltd., a FINRA member since 2007 operating out of New York City, NY, employs roughly 30 registered representatives in its full-service brokerage capacity. The Firm, along with two of its principals, Ronald Mark Heineman and Michael Trent Morris, were charged by FINRA’s Department of Enforcement in a Complaint alleging a myriad of…
Wells Fargo Advisors, a FINRA member Firm since 1987 headquartered in St. Louis, Missouri, conducts retail brokerage / wealth management business via 7,000 branch offices and employs roughly 25,000 registered reps. The Firm, in proposing settlement of rule violations alleged by FINRA without admitting or denying the findings, consented to a FINRA censure and fine…
Equinox Securities, a FINRA registered broker-dealer since April 2008 headquartered in Redlands, CA, offers general securities to the public via 27 FINRA registered representatives. The Firm, along with President/CCO Stephen Michael Oliveira, and registered representative Chris Blaine Palkowitsh, were charged by FINRA Department of Enforcement in a Complaint containing allegations that Palkowitsh and Equinox excessively…
Matthew Joel Levitt of Redlands, CA, a former direct participation programs representative with Equinox Securities, Inc., was barred from association with any FINRA registered firm in all capacities after Levitt failed to cooperate with a FINRA investigation concerning Levitt’s offered and sale of securities while employed with Equinox in violation of NASD, FINRA, and federal…
Lee R. Sobel of Redlands, CA, a former direct participation programs representative with Equinox Securities, Inc., was charged by FINRA Department of Enforcement in a Complaint containing allegations that Sobel failed to appear for an on-the-record interview in connection with FINRA’s investigation of Sobel’s offer and sale of private placements during his employment with Equinox…
Jason Muskey of Mossic, PA, a former Ameritas Investment Corp. broker, well-known Moosic business man and prior president of the National Association of Insurance and Financial Advisors-PA, pled guilty on February 17, 2015, to money laundering, identify theft, and mail fraud in the connection with the theft of over $2M from clients– many of whom…
Brian M. Berger, a former Newbridge Securities Broker, was barred from association with any FINRA-registered firm in all capacities after Berger failed to cooperate with a FINRA investigation in connection with allegations that he misappropriated funds from elderly customers while registered with Wells Fargo Advisors LLC and MetLife Securities, Inc. FINRA Letter of Acceptance, Waiver…
Jeffrey B. Pierce of Waltham, MA, a former financial advisor and registered representative with MidAmerica Financial Services, was charged on June 30, 2015 by the Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth in connection with allegations that Pierce willfully engaged in fraudulent, dishonest, and unethical activities…
Kenneth Hornyak of Traverse City, MI, a former financial advisor and general securities representative with Stifel Nicolaus & Company, was barred from association with any FINRA-registered firm in all capacities after failing to appear for an on-the-record interview in connection with FINRA’s investigation into potential discretionary trading, unauthorized trading and unsuitable short-term trading in Unit…
First Southwest Company, a FINRA registered broker-dealer since 1946 headquartered in Dallas, TX, offers a variety of investment services along with providing clearing services to 78 correspondent firms. The Firm was just recently censured and fined $450,000 after it accepted and consented to FINRA’s findings that the Firm had failed to deliver Exchange Traded Fund…
NFP Advisor Services, a FINRA member firm since 1997 headquartered in Austin, TX, conducts general securities business via 1,924 registered individuals and 673 branch offices. The firm, in proposing settlement of rule violations alleged by FINRA without admitting or denying the findings, consented to a FINRA censure and fine of $500,000 in connection with failing…
Michael J. Oppenheim of Livingston, New Jersey, a former registered investment advisor representative and registered representative of J.P. Morgan Securities LLC, was charged in a criminal complaint by the United States Attorney for the Southern District of New York for one count each of wire fraud, embezzlement, securities fraud, and investment advisor fraud in connection…
Malcolm Segal of Langhorne Pennsylvania, a former registered representative of Aegis Capital Corp. was indicted by a federal grand jury in Philadelphia for nine counts of mail fraud and wire fraud in connection with operating a $15.5 million Ponzi Scheme. United States v. Malcolm Segal (E.D. Pa. June 25, 2015). Following the release of his indictment,…
Retail investors lucky enough to have never had trouble with stockbrokers, or the broker-dealer firms who employ them, may not be aware that the standard of conduct for these investment professionals is below that of a fiduciary. A fiduciary is obligated to act in the best interest of the person or entity to which the…
An arbitration claim by Lucy and John Mattinen against White Pacific Securites Inc. (WPS), the firm that employed a broker who misappropriated their money, has gone to arbitration after a federal court in San Francisco declined to enjoin the claim in an order issued March 19. The claim includes counts for breach of fiduciary duty,…
Doug Mirabelli, a former catcher for the Boston Red Sox, was awarded more than $1.2 million in arbitration against brokerage firm Merrill Lynch after claiming that the firm sank his money in inappropriate investments and made unsuitable recommendations, according to a Jan. 23 report by Reuters. On Jan. 13, an arbitration panel of the Financial…
Perhaps in response to large scale fraud of the kind surrounding the private placements of companies like Provident Royalties LLC, on Oct. 5, the Financial Industry Regulatory Authority, or FINRA, filed a new rule proposal with the Securities and Exchange Commission, or SEC. Proposed FINRA Rule 5123 would impose new notice and disclosure requirements on…
A federal circuit court has ruled that the Financial Industry Regulatory Authority Inc., or FINRA, cannot collect fines through court judgments, leaving investors to wonder how effective the self-regulatory organization can be as a disciplinary body. The decision from the 2nd U.S. Circuit Court of appeals, entered Oct. 5, stated that FINRA does not have…
Bank of America subsidiary Merrill Lynch, Pierce, Fenner & Smith Inc. has been fined $1 million by the Financial Industry Regulatory Authority, or FINRA, for failure to supervise one of its stockbrokers at its branch office in San Antonio, Texas. FINRA announced the fine on Oct. 4. Bruce Edward Hammonds, a registered representative with the…
Stockbrokers who go rogue and start to sell risky products promising high returns without the knowledge or approval of their broker-dealer employers are engaging in a practice known as “selling away,” that is a top concern for state securities regulators. Selling away is a common infraction, according to The North American Securities Administrators Association, or…
In 2010, on behalf of certain residents of the United Kingdom, Nicholas J. Guiliano, Esquire, of the Guiliano Law Group, P.C., in Philadelphia, Pennsylvania sued several individuals, including Sky Capital, Granta Capital Group, Michael R. Passaro, Ross H. Mandell, and Stephen W. Shea for violation of the United States federal securities laws, and the securities…
FINRA finally acts on what we knew all along. On September 27, 2011, the Financial Industry Regulatory Authority (FINRA) obtained by Acceptance Waiver & Consent (AWC), a permanent bar against former Wachovia Securities, L.L.C. and Wells Fargo Securities, L.L.C. stockbroker, Tom D. Hamsher. Hamsher was accused of making false statements in connection with the sale…
The FBI is investigating two former Edward Jones brokers for their alleged role in raising money from clients who invested in a Ponzi scheme. A client brought the matter to Edward Jones’ attention in March of this year, the brokerage firm said. As it followed up, Edward Jones learned that the FBI was in the…
RBC Capital Markets LLC of New York has agreed to pay $30.4 million to settle charges that it sold unsuitable, high-risk investments to five eastern Wisconsin school districts, as well as charges that it inadequately disclosed the risks. The misconduct charges were brought by the Securities and Exchange Commission, or SEC, after RBC marketed and…
A recent study from the University of St. Gallen, in Switzerland, led by forensics expert Pascal Scherrer and Thomas Noll, finds that professional stock traders actually outperform diagnosed psychopaths when it comes to competitive and risk-taking behavior. According to the study’s authors, one contributing factor may be that stockbroker behavior is more reckless and manipulative…
Current shareholders of Rural/Metro who purchased shares before March 28, 2011 may have potential claims against the board of directors of Rural/Metro Corporation (NASDAQ: RURL) concerning possible breaches of fiduciary duty and other violations of law related to the Company’s agreement to be taken private by Warburg Pincus in a transaction valued at approximately $438.2…
Current shareholders of Graham Packaging Company owning their shares prior to April 13, 2011 may have a claim concerning possible breaches of fiduciary duty and other violations of law related to the Company’s entry into an agreement to be acquired by Silgan Holdings Inc. in a $4.1 billion (including debt) cash-and-stock deal. Merger of Graham…
The Financial Industry Regulatory Authority (FINRA) has suspended Pinnacle Partners Financial Corporation, of San Antonio, TX, and its President, Brian K. Alfaro, for violating FINRA Temporary Cease and Desist Order prohibiting fraud in connection with the sale of certain oil and gas joint interests. FINRA Chief of Enforcement, said, “Brian Alfaro and Pinnacle pose a…
The United States Securities and Exchange Commission announced that Wells Fargo Securities LLC consented to an $11.2 million fine in connection with the sale of collateralized debt obligations (CDOs) in late 2006 and early 2007. The SEC found that Wachovia Capital Markets violated the securities laws by fraudulently charging undisclosed and excessive markups in the…
Investors suffering losses in Inverse and Leveraged Exchange Traded Funds may have claims against their stockbrokers or financial advisors for failure to disclose risk or perform due diligence. An Exchange-Traded Fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at…
Investors suffering losses in the Oppenheimer Rochester Funds may have claims against their stockbrokers or financial advisors for failure to perform due diligence. Last year, investors in the Oppenheimer Rochester National Municipal Bond Fund collectively lost in excess of $5 billion as these shares lost more than 60% of their value. Rochester National Municipals Fund:…
Maybe we should send Newark a list of the other firms. (Ameriprise, Oppenheimer, Merrill Lynch, H&R Block Financial Advisors, Charles Schwab, etc.). I guess after UBS rolled over for New York and Massachusetts, the New Jersey regulators had to work real hard to get UBS to settle with New Jersey, and of course, just like…
Viatical Settlements are always ranked by the North American Securities Administrators Association as one of the top ten investment scams of all times. The securities regulators of the various states seem to also agree, and since 1994, have entered no less than 191 cease and desist orders or enforcement proceedings concerning the sale of viatical…
We all know money makes the world go round, and it is no surprise that stock brokers will do whatever they can to obtain order flow and execution business from institutional clients. While in substantial part this may be old news, the Securities and Exchange Commission announced the amendment of a cease and desist order…
Edward P. May was sentenced to 16 years in federal prison on Oct. 4 for perpetrating the largest Ponzi scheme in the history of the Eastern District of Michigan, according to a statement released by U.S. Attorney Barbara L. McQuade. The $350 million scheme eventually cost investors more than $49 million, the statement said. May…
About eight months after stockbroker Gregg M.S. Berger was indicted for conspiracy to commit securities fraud and wire fraud for his role in an international pump and dump stock scheme, the Securities and Exchange Commission, or SEC, has settled failure to supervise charges against Berger’s former employer, Gilford Securities Inc. of New York. Berger, 47,…
A class action is a form of lawsuit in which a large group of people collectively bring a claim to court or in which a class of defendants is sued. Class action lawsuits offer a number of advantages because they aggregate a large number of individualized claims into one representational lawsuit. As the Securities &…
The Securities and Exchange Commission (SEC) approved Financial Industry Regulatory Authority’s proposed rule change to provide customers in all FINRA arbitrations the option of having an all public panel. In cases with three arbitrators, the arbitration panels have been comprised of two public arbitrators and one arbitrator with a nexus or connection to the securities…
The Securities and Exchange Commission, as required by the Dodd-Frank financial reform law issued a report to Congress on Friday advocating that any investment professional, stockbrokers and investment advisors providing personalized investment advice to retail customers would have to adhere to a fiduciary standard, including the duty of loyalty, and the duty of care, in…
The Financial Industry Regulatory Authority, Inc. (FINRA) announced that it filed with the Securities and Exchange Commission (SEC or Commission) a proposed rule to amend the panel composition rule, and related rules, of the Code of Arbitration Procedure for Customer Disputes (Customer Code), to provide customers with the option to choose an all public arbitration…
Judges, and not arbitrators, should decide questions relating to the enforceability of a class action waiver in an arbitration clause because such questions present issues of “arbitrability” that are properly decided by courts, an en banc panel of the 3rd U.S. Circuit Court of Appeals has ruled. “An unconscionable challenge to the provisions of an…
On Monday, in North Dallas, Texas, a disgruntled investor paid a visit to his stockbroker and investment advisor’s office, with a 45 caliber weapon, yelling “you lost all my money,” and is alleged to have shot his broker and the broker’s son, before taking his own life. According to the Fort Worth News, Robert Mustard,…
After the Financial Industry Regulatory Authority, or FINRA, found that Raymond James Financial Services Inc. had charged excessive commissions in about 13,500 customer accounts due to a failure to supervise, the firm agreed to pay more than $750,000 plus interest to the customers, as well as a $200,000 fine. Raymond James also agreed to be…
Charles Schwab & Co. violated regulatory rules by requiring customers to sign a contract with a provision waiving their rights to bring class actions against the firm, according to a Schwab Decision Permitting Class Waivers on Feb. 1 Schwab is one of the nation’s largest discount brokerage firms, with more than 340 offices nationwide that…
According to a Jan. 17 piece by former investment banker William D. Cohan, the mandatory arbitration provision buried deep within the documents one must sign to open a brokerage account or get hired by a brokerage firm is a wholesale abdication of legal rights. Author William D. Cohan Cohan, the author of “Money and Power:…
On Jan. 9, an arbitrator for the Financial Industry Regulatory Authority, or FINRA, awarded customers of a brokerage firm compensatory damages of roughly $55,000 for breach of fiduciary duty, negligence and breach of contract in the course of a bond sale. In addition, the customers were awarded almost $15,000 in prejudgment interest. The customers, the…
Stock market volatility and low interest rates these days have caused more than a few investors to contemplate alternative investments, and one possibility is the Real Estate Investment Trust (REIT). Concern over the clarity of these investments has led the Office of Investor Education and Advocacy of the Securities and Exchange Commission (SEC) and the…
Wells Fargo Bank, N.A., successor by merger to Wachovia Bank N.A., has agreed to pay $46 million to settle charges brought by the Securities and Exchange Commission that Wachovia fraudulently rigged bids in municipal bond reinvestment transactions in 25 states and Puerto Rico. The payment consists of a $25 million penalty and disgorgement of almost…
Patricia E. Collantes, the former operations manager at the Palo Alto, Calif., office of Citigroup Global Markets Inc., has been fined and suspended by the Financial Industry Regulatory Authority, or FINRA, for her failure to supervise a sales assistant who misappropriated almost $750,000 from customers. Collantes agreed last month to an $8,000 fine and a…
A National Examination Risk Alert was issued on Nov. 30 to inform broker-dealers how to develop effective policies and procedures for branch office inspections as a way to combat broker fraud, unsuitable investments and failures to supervise. Jointly Issued by the FIRNA & the SEC The alert was jointly issued by the Financial Industry Regulatory…
In an eloquent opinion that reaffirmed the truth-finding mission of the courts, Judge Jed S. Rakoff rejected the $285 million settlement agreement Citigroup reached with Securities and Exchange Commission, or SEC, to resolve charges that the giant bank had gamed the mortgage bond market. The judge told the parties to prepare for trial on July…
Eight more broker-dealers and 10 individuals have been sanctioned by the Financial Industry Regulatory Authority, or FINRA, and ordered to pay restitution totaling more than $3.2 million for selling interests in allegedly fraudulent private placements without having a reasonable basis for recommending the securities. FINRA announced its list of firms sanctioned on Nov. 29. The…
According to forensic accountant and frequent expert witness Gordon Yale, the billions of dollars in allegedly fraudulent private placements sold to investors resulted partly from broker-dealers’ massive failure to meet their due-diligence responsibilities. Yale is certified public account and principal of Yale & Co. who has worked on more than 50 lawsuits brought by investors…
Chase Investment Services Corp. has been ordered to reimburse customers $1.92 million for losses they incurred after Chase Investment brokers recommended the customers purchase unsuitable unit investment trusts and floating rate loan funds, the Financial Industry Regulatory Authority (FINRA) announced on Nov. 15. FINRA also censured Chase Investment and fined the firm $1.7 million for…
Randall Merk, a former executive for Charles Schwab & Co. Inc., has agreed to pay a civil penalty of $150,000 and be suspended for one-year to settle charges of fraud and misleading investors On Nov. 21, the SEC announced that Merk signed a consent and a proposed final judgment against him without admitting or denying…
The Securities and Exchange Commission today charged a longtime Bernie Madoff employee with fraud for his role in creating fake trades to facilitate the massive Ponzi scheme. The SEC alleges that David Kugel, who worked at Bernard L. Madoff Investment Securities LLC (BMIS) for nearly four decades, was asked by Madoff to provide the firm’s…
In a curious case of absent oversight, Morgan Stanley Investment Management has been fined $1.5 million by the Securities and Exchange Commission (SEC) for improperly charging a fund it manages for investment advisory services that were never performed. Morgan Stanley Investment Management is a wholly owned subsidiary of Morgan Stanley. From 1996 to 2007, it…
The Securities and Exchange Commission, or SEC, announced last week that it filed a record 735 enforcement actions in the fiscal year that ended Sept. 30. The enforcement actions often involved highly complex financial products and transactions. They also dealt with market practices, including those related to the 2007 to 2008 financial crisis, according to…
Morgan Stanley & Co. Inc., and its subsidiary Morgan Stanley Smith Barney LLC, have been fined $1 million and censured by the Financial Industry Regulatory Authority, or FINRA, for excessive markups and markdowns that were charged to customers on corporate and municipal bond transactions. The firm was also ordered to $371,475 in restitution plus interest…
Ratcheting up the drama surrounding a $9.2 million arbitration award levied against Morgan Keegan & Co. Inc. for securities fraud, an expert witness for the plaintiffs has moved to expunge all references to him in an opinion issued by a federal court that vacated the award, and laid waste to the expert’s reputation in the…
South Jersey lawyer Michael W. Kwasnik has been indicted for stealing more than $1 million from an elderly woman from Cherry Hill, N.J., who hired him to plan her estate. Kwasnik was indicted on Nov. 4 on a range of criminal charges including theft by unlawful taking and money laundering. A warrant was issued for…
On Nov. 3, the 2nd U.S. Circuit Court of Appeals partially vacated a judgment of the court below with the result that a married couple from Illinois can pursue suitability and other claims against Ameriprise Financial Services Inc., the defendant below. The married couple, John and Elaine Beland, appealed after the U.S. District Court for…
A second defendant has been added to an indictment in the U.S. District Court for the Northern District of Illinois stemming from a Ponzi scheme that fraudulently obtained $105 million in investments from about 400 victims, leading to $34 million in losses. The newly added defendant, Alfred Gerebizza, and his co-defendant Daniel Spitzer allegedly misappropriated…
Nicodemo S. Scarfo, the 46-year-old son of imprisoned Philadelphia crime boss “Little Nicky” Scarfo, was arrested on Nov. 1 along with 13 associates and indicted on multiple counts of conspiracy, including securities fraud, money laundering, racketeering, wire fraud and obstruction of justice. The charges relate to the alleged extortionate takeover of a publicly traded financial…
Last week the Financial Services Committee of the U.S. House of Representatives voted on a bipartisan basis to send the Entrepreneur Access to Capital Act to the floor for a vote, and state securities regulators are warning that the bill could lead to rampant fraud if it were to pass. Sponsored by Rep. Patrick McHenry,…
As a result of the three submissions of altered documents in eight years, the Securities and Exchange Commission, or SEC, has ordered the Financial Industry Regulatory Authority, or FINRA, to hire an independent consultant as a means to improve its document preparation policies and procedures. FINRA was directed to take other remedial measures as well,…
The annual report on enforcement actions to fight securities fraud released this month by the North American Securities Administrators Association, or NASAA, shows that actions pursued by state securities regulators increased by 51 percent in 2010 over the number of actions reported in the previous year. The report also indicates that fraud and unregistered securities…
Brian Simone, a disgraced lawyer and former stockbroker, has been banned from the securities business after he falsified paperwork and failed to reveal that he had been disbarred in Massachusetts after allegations of forgery, fraud, misappropriation of funds, and misrepresentation. Brian Simone Barred From Association from any FINRA member On Oct. 6, the Financial Industry…
Another small broker-dealer has been driven out of the business by litigation costs resulting from the sale of allegedly fraudulent private placements in the oil and gas sectors for Provident Royalties LLC, according to a report from Investment News. Last month, Boogie Investment Group Inc. of Melbourne, Fla., filed a request with the Financial Industry…
UBS Financial Services Inc. has agreed to settle charges brought by the Financial Industry Regulatory Authority, or FINRA, alleging that UBS failed to supervise a stockbroker who stood on both sides of multiple municipal bond trades to and from his customers’ retail accounts. FINRA Imposed $300,000 Fine & censured UBS The stockbroker engaged in the…
Morgan Stanley Smith Barney, or more accurately, its predecessor Morgan Stanley & Co., the Morgan Stanley part of the June 2009 joint venture with Morgan Stanley & Co. and the Smith Barney division of Citigroup Global Markets, Inc., is no stranger to e-mail problems. In a Financial Industry Regulatory Authority (FINRA) securities arbitration, we represented…
Reverse Convertible Notes are highly risky investments. Many of these securities have stated coupons, which entice unsophisticated investors, but that are a trap for investors, because stockbrokers and other investment professionals fail to disclose that when the price of the securities to which the reverse convertible note is linked, increase in value the investor’s return…
Corporate America controls the U.S. Chamber of Commerce. These are the same people that want tort reform, and to limit the liability and responsibility of corporate America, and everyone else, for polluting the environment, selling defective products, price fixing, financial fraud, and otherwise screwing consumers, every chance they can get away with. So when the…
The retail market for structured notes with principal protection has been growing in recent years. While these products often have reassuring names that include some variant of “principal protection,”,”capital guarantee,”,”absolute return,”,”minimum return” or similar terms, they are not risk-free. Any promise to repay some or all of the money you invest will depend on the…
The Illinois Securities Department has revoked the registration of Thomas N. Cooper and Susan B. Cooper of Senior Financial Strategies Inc., doing business as Pinnacle Investment Advisors. Both of the Coopers wrongfully liquidating customer annuities to fund the purchase of fixed indexed annuities. The Investigation The Illinois Securities Department’s investigation uncovered that between Feb. 26,…
On May 17, 2011, John F. Wasik through Demos, a non-partisan public policy research and advocacy organization, published a Paper, How Safe Are Your Savings? How Complex Derivative Products Imperil Seniors’ Retirement Security. The paper examines what these investments are, how they are sold and what Congress and the SEC need to do to protect…
The Financial Industry Regulatory Authority (FINRA) launched its new Disciplinary Actions Online database, which provides access to Finra complaints against firms and individual brokers, settlement agreements (known as Letters of Acceptance Waivers and Consent, or AWCs), decisions by Finra hearing panels and National Adjudicatory Council decisions. Previously, the public had to contact FINRA to obtain…
The Financial Industry Regulatory Authority (FINRA) fined Wells Fargo Advisors, LLC of St. Louis, $1 million for its failure to deliver prospectuses in a timely manner to customers who purchased mutual funds in 2009, and for delays in reporting material information about its current and former representatives, including arbitrations and complaints involving its representatives. Firms’…
Credit Suisse Group AG, Bank of America Corporation, J.P. Morgan Chase & Co., HSBC Holdings plc, Barclays Bank plc, Lloyds Banking Group plc, WestLB AG, UBS AG, Royal Bank of Scotland Group plc, Deutsche Bank AG, The Norinchukin Bank, and Citibank, N.A., have been named in two separate class actions alleging fraud and the manipulation…
Shareholders of of Tenent Healthcare Corporation may have potential claims related to the company’s acquisition by Community Health Care. According to a complaint filed in the United States District Court for the Northern District of Texas, Tenet seeks to compel Community Health Systems, Inc. to make certain disclosures to its shareholders, and alleged that Community…
Shareholders purchasing 99 Cents Only Stores, Inc. (NYSE: NDN) shares prior to March 11, 2011 may have potential claims against the board of directors of the company concerning possible breaches of fiduciary duty and other violations of law related to the company’s acquisition by Leonard Green & Partners, L.P. to acquire the company in a…
Current shareholders of TradeStation Group, Inc. (NASDAQ: TRAD) may have potential claims against the board of directors of the company concerning possible breaches of fiduciary duty and other violations of law related to the Company’s entry into an agreement to be acquired by Monex Group, Inc. (Monex) in a transaction valued at approximately $411 million….
According to the latest figures from the Financial Industry Regulatory Authority (FINRA), through October 2008, investment arbitration claims are up 49% from 2007. In addition, during the first 10 months of 2008, more cases have been already been filed than were filed in all of last year. Most brokerage agreements contain provisions that any disputes…
The Financial Industry Regulatory Authority or FINRA ordered Richard H. Byerly of Chester Springs, Pennsylvania to pay $30,000 in restitution to and was suspended for two years from association with any FINRA member in any capacity for the unauthorized churning of customer accounts belonging to two senior citizens. Although FINRA found that he “exercised discretion,”…
Your stockbroker may be more than over charging you. Everyone has heard about the hazards of unexpected fees, lurking in complicated payments, squeezing money out of people by deliberately confusing them or through outright dishonesty. FINRA Fines Broker-Dealers Charging Handling Fees The Financial Industry National Regulatory Authority, or FINRA has discovered fee abuses at a…
Many people say “my broker robbed me”, but increasingly and unfortunately, many people actually mean it. There appears to be a growing trend in the misappropriation or conversion of customer funds by stockbrokers from the outright forgery of customer checks or transfers to personal loans and the “opportunity” to invest in non-existent businesses often created…
Wall Street’s most recent synthetic investments, despite the catchy names, offer more risk that your broker is likely to disclose. The retail market for structured notes or equity linked notes, with principal protection has skyrocketed in recent years. Why? Because they are easy to sell to unsuspecting investors, offer high commissions, and have names that…
A Financial Industry Regulatory Authority Arbitration Panel in the matter of Fahs v Merrill Lynch Pierce Fenner & Smith, Inc., FINRA-DR Arbitration No. 09-06623 awarded a Connecticut man one hundred percent (100%) of his net out-of-pocket compensatory losses, plus interest at the rate of 6% per annum over a period of approximately three years, together…
The Guiliano Law Group, P.C. is investigating claims on behalf of purchasers of Heartware International (NASDAQ: HTWR) between November 15, 2010 and April 15, 2011. HeartWare International, Inc., a medical device company, engages in the design, manufacture, and marketing of medical devices for the treatment of advanced heart failure. On April 15, 2011, HeartWare shares…
Shareholders purchasing SRA International (NYSE: SRX) shares prior to April 1, 2011 may have potential claims against the board of directors of the company concerning possible breaches of fiduciary duty and other violations of law related to the company’s merger agreement to be taken private by Providence Equity Partners for $31.25/share in cash or approx….
The National Center for Victims of Crime released a report in conjunction with the Financial Industry Regulatory Authority (FINRA) Foundation “Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraud“ According to a Report issued by the Financial Fraud Research Center, more than 30 million Americans are victims of financial fraud every year with…
Banks do not want to be in the banking business. Rather than managing customer deposits, it is much more lucrative and less risky, at least from the bank’s perspective, to solicit customers to purchase securities. CCO Investment Services Corp. CCO Investment Services Corp. is a wholly owned subsidiary of Citizens Financial Group, Inc., which is…
Will the SEC Listen to Congress or NAASA and act Under Dodd-Frank Wall Street Reform and Consumer Protection Act to prohibit the use of mandatory securities arbitration? On Monday, thirty seven members of Congress wrote to the SEC to end forced FINRA arbitration. In a letter to Chairperson White, they wrote: We write to express…
If you’ve been watching any commercial television lately, you are well aware that the financial services industry is very busy running expensive ads imploring us to worry about our retirement futures. Open a new account today, they say. They are not wrong that we should be doing something: America is facing a retirement crisis. One…
According to FINRA Dispute Resolution Statistics, so far in 2013, only 44% of investors bringing claims against their stockbroker or brokerage firm recover any damages, and on average, even those that win, only recover 50% of their damages. Empirical evidence clearly demonstrates that “Better representation may lead to better outcomes.” The Influence of Arbitrator Background…
Between May 2006 and August 2008, Citigroup raised over $71 billion dollars the offerings of bonds, and its preferred stocks, (which are not bonds, as their yields are merely precatory), to investors whom may have otherwise been led to believe were safe, conservative, higher than average yield investments. Citigroup Sold Toxic Securities Linked to Mortgages…
Affinity fraud hit’s a new low. Jody Myung Dunn was accused by the Securities and Exchange Commission, or SEC, of selling $3.45 million in fraudulent investments in a phantom offshore company to the deaf community. Dunn is also deaf. Dunn Solicited Deaf Investors The deaf investors were allegedly solicited via the Internet to sink their…
Last year, a Connecticut based hedge fund, Turnberry Capital Management LP, filed a FINRA arbitration securities claim against SunTrust Banks, Inc. to recover $13 million it lost in 2007 by investing in mortgage backed securities. However, Turnberry Capital Management did not purchase the securities from SunTrust, who manufactured the defective securities, but purchased the securities…
Reuters announced today that while it did not publicize the change, the Financial Industry Regulatory Authority (FINRA) launched an effort earlier this year to fast-track investigations and disciplinary cases involving risky brokers who may pose the greatest threats to the investing public. According to the article, “Brokers who already have an extensive disciplinary history with…
The Financial Industry Regulatory Authority or FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is not part of the government. FINRA is an independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly, by…
Investors seeking to recover their damages as a result of the sale of defective or otherwise tainted investment products by Wall Street, since 1987, have been required to bring these claims in a forum sponsored and paid for by the securities industry, the Financial Industry Regulatory Authority or FINRA, formerly known as the National Association…
The pattern of brokers moving from one problem firm to another, according to a former broker, is sometimes called “cockroaching.” The Wall Street Journal Story On October 4, 2013, the Wall Street Journal wrote a story that more than 5,000 brokers who were still licensed to sell securities earlier this year after working for one…
Beverly Hills stockbroker, Bambi Holzer, who wrote books, made television appearances and was the stockbroker to the rich and famous, or at least after she was done, the not so rich, has been suspended by the Financial Industry Regulatory Authority or FINRA, for the failure to comply with a $2 million arbitration award. Holtzer’s career,…
Wall Street Financial Group, Inc. of Fairport, New York appears to operate an “independent” or “franchise” broker-dealer, operating from a series of geographically dispersed branch offices, including an office located in McKeesport, Pennsylvania. A “franchise” office is where the broker pays all the expenses, in consideration for a higher commission pay-out. However, there is no…
Maureen Sloan, 63, of Newport Beach, Calif., claims former LPL Financial L.L.C. broker Alberto Neira stole $4.5 million from her through a fraudulent auto-financing scheme called Silver Oak Leasing. Ms. Sloan said she lost another $4 million in unsuitable trading of preferred stock. Ms. Sloan is the granddaughter of Walter Knott, founder of the Buena…
A federal court for the District Court for the Central District of Illinois entered an injunction against Timothy J.Roth, of Urbana, Illinois, a stockbroker with the NJ based firm Comprehensive Capital Management, Inc. for stealing more than $16 million of his clients’ mutual fund shares, liquidating the shares, and sending the ill-gotten gains to various…
Nicholas J. Guiliano, Esquire of the Guiliano Law Group, P.C. is scheduled to speak at the Rutgers Law School Camden on April 12, 2013 on the history and practice of federal securities arbitration law, including recent developments in the law, as part of a course entitled Securities Litigation and Enforcement. The Focus of the Lecture…
As Justice Louis D. Brandies once said not in a legal opinion, but in a book, “Sunshine is said to be the best disinfectant; Electric light the most efficient policeman,” Brandies, Other People’s Money (1914). The Responsibility of the SEC It is the responsibility of the United States Securities & Exchange Commission to oversee securities…
It is OK to steal as long as you do not steal too much to get a greedy lawyer involved. In the good old days, if you stole $100 from 2 million people, or $200 million, although no competent greedy lawyer would be willing to undertake your representation to recover your $100, the class action…
Everyone thinks that bonds, including U.S. Treasury Bonds are safe investments. Think again. If interest rates, which are at historical lows, rise, the market prices of bonds go down. Longer term bond prices go down real far down, and mutual funds that invest or trade bonds, will get hardest hit, and this has nothing to…
Real Estate Investment Trusts or REITs are companies, which own and manage income-producing property (e.g.hotels, hospitals, & office buildings) or are involved in real estate financing. REITs are either publically traded, non-exchange traded, or privately traded. REITs provide investors with real estate exposure, but unlike other real estate investments, REITs are often entirely illiquid. REIT…
When your stockbroker sells you a security, whether it be a bond or a stock, you are typically charged a “commission” which is fully disclosed and appears on your confirmation. So for example, you may wish to purchase 200 shares of Apple Computer (AAPL) or an exchange traded stock, and your broker, or brokerage firm…
Since at least 1987, if you want to sue your stockbroker for investment fraud, the sale of unsuitable or other risky investments, breach of fiduciary duty, or for the sale otherwise defective financial products, including everything from reverse convertible notes to structured products, Real Estate Investment Trusts or even Ponzi schemes, investors are required to…
The Public Investors Arbitration Bar Association (PIABA) issued a statement finding FINRA’s proposed new rule which would allow for stockbrokers, who are not named as parties in customers’ arbitration complaints, but whose conduct is the subject of investors’ complaints, to seek removal of the investor’s complaint from the stockbroker’s regulatory record potentially harmful to investors….
Peter C. Bishop, formerly with the Portland Maine offices of Ameriprise Financial and RBC Capital Markets, accepted a one month suspension and fine of $10,000 imposed by the Financial Industry Regulatory Authority for effecting unauthorized transactions in the securities accounts of his customers. FINRA Letter of Acceptance, Waiver & Consent According to the FINRA Letter…
The Securities and Exchange Commission today charged Stephen A. Colangelo, Jr. a purported investment adviser in New York with defrauding investors who he convinced to invest in his start-up businesses while in reality he was spending their money on illegal drugs and gambling. The SEC Complaint According to the SEC Complaint, From 2009 through 2011,…
The Financial Industry Regulatory Association (“FINRA”) maintains a database of customer complaints about individuals licensed by FINRA as registered representatives. The data can be accessed and used by both securities regulators and the investing public to find out about past complaints made by customers of the registered representatives. Customer Complaints Can Be Expunged But records…
CCO Investment Services Corp. is a wholly owned subsidiary of Citizens Financial Group, Inc., which is owned by the Royal Bank of Scotland, and in substantial part, operates from kiosks located in traditional retail bank branch offices of Citizens Bank. Since 2006, CCO has been fined more than $4.9 million by a series of federal…
The Financial Industry Regulatory Authority (FINRA) found that Sean M. Sheridan, during the course of his association with J.P. Turner & Co., Inc. fraudulently obtained $267,000 from at least eight customers, who also lost approximately $1,040,856 in connection with the short term trading of investment company shares. Until sometime in 2010, Sean F. Sheridan (“Sheridan”)…
SECURITIES ARBITRATION OUTLINE & READING MATERIALS 1. Arbitration — Overview “Equity is justice in that it goes beyond the written law. And it is equitable to prefer arbitration to the law court, for the arbitrator keeps equity in view, whereas the judge looks only to the law, and the reason why arbitrators were appointed was…
Broker-dealers have long offered a range of structured securities to institutions and wealthy individuals. Certain structured securities products have been increasingly marketed to retail investors in recent year. According to a recent report by the United States Securities & Exchange Commission, on Issues Identified in Examinations of Certain Structured Securities Products Sold to Retail Investors,…
Until recently, Clifford Jagodzinski worked at Morgan Stanley Smith Barney as a Complex Risk Officer. Mr. Jagodzinski’s job duties included identifying potential compliance risk issues and enforcing securities law violations. According To The Lawsuit According to a lawsuit filed in federal court, as part of his officicail duties, Mr. Jagodzinski detected that a particular broker,…
The SEC’s Office of Investor Education and Advocacy is issued and Investor Bulletin to help educate investors about lost and stolen securities and the Commission’s Lost and Stolen Securities Program (LSSP), a database for securities certificates reported lost, stolen, missing, or counterfeit. About Lost and Stolen Securities When a security certificate is retired, such as…
As early as January 2009, financial publications began to warn investors of the risks associated with Inverse and Leveraged Exchange Traded Funds. According to Morninstar, these funds can be “expensive and extremely risky” and may not be appropriate for all investors. Indeed, in May 2009, FINRA’s Enforcement Department’s Strategic Programs Group conducted an inquiry regarding…
The Securities and Exchange Commission announced fraud charges against James M. Donnan, III, and Gregory L, Crabtree for allegedly perpetrating a Ponzi scheme. Donnan resides in Athens, Georgia, and Crabtree resides in Proctorville, Ohio. The complaint also names two of Donnan’s children, Jeffrey Todd Donnan and Tammy L. Donnan, and his son-in-law, Gregory K. Johnson,…
Recently, an issuer of Exchange Traded Notes (ETNs) ceased issuing new notes of a certain type. This caused the trading price of that ETN to spike by nearly 90 percent. When the issuer resumed issuing the notes of that type, their market price plunged by more than half in two days. To help investors avoid…
Securities Arbitration Is Not An Ideal World On July 16, 2012, Stephen J. Choi, Professor of Law, New York University, Jill E. Fisch, Professor of Law, University of Pennsylvania, and A.C. Pritchard Professor of Law, University of Michigan, released their Draft Paper: THE INFLUENCE OF ARBITRATOR BACKGROUND AND REPRESENTATION ON ARBITRATION OUTCOMES. As stated in…
Brookstone Securities Inc. of Lakeland, Fla., was fined $1 million after a hearing panel of the Financial Industry Regulatory Authority (FINRA) found the broker-dealer made fraudulent sales of collateralized mortgage obligations to elderly, unsophisticated investors. Brookstone Hearing Panel Decision Antony L. Turbeville, the firm’s owner and former CEO, and Christopher Kline, one of its brokers,…
Citigroup Global Markets Inc. has agreed to be censured and to pay a fine of $3.5 million for posting inaccurate data on residential mortgage-backed securities on a website it maintains pursuant to federal regulations. Despite possessing information that the data posted on its website was inaccurate, Citigroup Global did not correct the data it was…
A federal court in California dismissed a complaint filed by Charles Schwab Corp. that tried to block regulators from disciplining the brokerage firm for embedding a clause in its customer account agreements that precludes class-action lawsuits. FINRA Complaint Filed The Financial Industry Regulatory Authority (FINRA) alleged in a complaint filed in February with its Office…
The Financial Industry Regulatory Authority (FINRA) has suspended Andrew J. Aragona, a former broker with Newbridge Securities Corp., from associating with any FINRA-registered firm in any capacity for one year for unsuitably recommending that an elderly customer switch variable annuity contracts. Per a default decision entered May 2, Aragona was also fined $15,000, and ordered…
Wells Fargo Advisors and its related firms have agreed to pay a fine of $2.1 million to settle a disciplinary action brought by the Financial Industry Regulatory Authority (FINRA) for the companies’ failure to supervise the sale of complex financial products known as non-traditional exchange-traded funds, as well as for making unsuitable recommendations of these…
Morgan Stanley & Co. LLC has consented to be fined $1.75 million by the Financial Industry Regulatory Authority (FINRA) for its failure to supervise the sale of complex financial products known as non-traditional exchange-traded funds, as well as for making unsuitable recommendations of these funds. In addition to the fine, Morgan Stanley consented to a…
UBS Financial Services Inc. of Puerto Rico and two of its executives have agreed to settle charges of fraudulent conduct related to mutual funds by paying $26.6 million, to be placed into an account for harmed investors. The fraud consisted of misleading statements made to investors, concealment of a liquidity crisis, and the obscuring of…
Harold E. Wilson, a former broker with Ameritas Investment Corp., has been permanently barred from the financial industry for engaging in private securities transactions without disclosing this activity to his firm. In addition, Wilson was barred for failing to respond to repeated requests for information on these transactions from the Financial Industry Regulatory Authority (FINRA)….
In October 2010, Nicholas J. Guiliano, Esquire of the Guiliano Law Group, P.C. in Philadelphia and Jeffrey Sonn of Sonn & Erez in Ft. Lauderdale, Florida filed nine actions in arbitration before the Financial Industry Regulatory Authority against Royal Alliance, Inc. and several of its former agents, in connection with the sale of the unregistered…
The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) filed a disciplinary proceeding on March 28 alleging that former broker William Bruce Smith misappropriated $100,000 from a customer. Smith, who worked for FINRA-member Triad Advisors in Shrewsbury, Ma., at the time of the misappropriation, was registered as a general securities representative and principal…
As a colleague once said: “if you put them to sleep, you have to wake them up”. However, a New York state court confirmed an $880,000 arbitration award against Merrill Lynch, Pierce, Fenner & Smith Inc. despite allegations that one of the arbitrators repeatedly fell asleep during the hearings. No Basis to Vacate the Award…
Independent/broker-dealer Basis Financial LLC, and its owner and CEO Armen Karapetyan have been charged with defrauding customers of about $1.8 million over a three year span through four private placement offerings involving financially shaky issuers. According to the FINRA Complaint According to a complaint filed by the Financial Industry Regulatory Authority’s (FINRA) Department of Enforcement…
Investment adviser Brenda A. Eschbach has consented to an entry of judgment against her for misappropriating over $3 million in client funds, the Securities and Exchange Commission (SEC) announced on Feb. 15. The SEC Complaint Against Brenda A. Eschbach According to the complaint filed by the SEC in U.S. District Court for the Central District…
State courts must enforce arbitration agreements pursuant to the Federal Arbitration Act (FAA) regardless of public policy concerns or conflicting state laws, the U.S. Supreme Court has held in Marmet Health Care Center Inc. v. Brown, in a per curiam opinion entered Feb. 21. West Virginia’s Supreme Court of Appeals The ruling vacated a decision…
Lloyd Thomas Mincy Jr., a stockbroker registered with Centaurus Financial Inc., has been fined $20,000 and suspended for nine months for fraudulently misrepresenting the guaranteed rates of return for variable annuities he sold to four customers. From October 2004 through 2008, Mincy materially misrepresented the features of the variable annuities, both verbally and in writing….
LPL Financial LLC must pay $1.4 million to an elderly couple who claimed they were the victims of fraud in connection with real estate deals. The award was issued by an arbitration panel of the Financial Industry Regulatory Authority (FINRA) on Feb. 10. Heinrich and Araceli Hardt, both 76, bought into real estate deals known…
Tough economic times call for investors to be wary, as financial professionals are tempted toward riskier behaviors, according to the Financial Industry Regulatory Industry’s (FINRA) 2012 report on regulatory and examination priorities, released Jan. 31. The report first lists a few investment characteristics that demand close attention, and then provides a detailed list of products…
The Securities and Exchange Commission today charged former professional baseball player Doug DeCinces and three others with insider trading ahead of a company buyout. The SEC alleges that DeCinces and his associates made more than $1.7 million in illegal profits when Abbott Park, Ill.-based Abbott Laboratories Inc. announced its plan to purchase Advanced Medical Optics…
Since January 2011, David Lerner Associates, Inc. (David Lerner Associates) has recommended and sold over $300 million of a $2 billion real estate investment trust (REIT) — Apple REIT Ten — without performing adequate due diligence in violation of its suitability obligations. Earlier Apple REITs under the same management inappropriately valued the REITs’ shares at…
Hairdressor, Marcy Salandra went to her stockbroker’s office at Investors Capital Corporation in McMurray Pennsylvania to withdraw money to buy a house. However, instead of meeting her broker Patricia S. Miller, she was greeted by three FBI agents. Apparently, instead of the $681,944 that her statements showed her Investors Capital Corporation account was worth, the…
In 2012, The Office of the Whistle-blower was established to administer the SEC’s whistle-blower program formed in accordance with Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Section 21F of the Securities Exchange Act of 1934. The Act provides that the SEC shall pay awards to eligible whistle-blowers who voluntarily…
Nicholas J. Guiliano, Esquire of the Guiliano Law Group will be featured as a Speaker at the 21st Annual Meeting of the Public Investors Arbitration Bar Association this year in Austin, Texas at the Barton Creek Resort and Spa. Discovery Phase of an Arbitration Mr. Guiliano’s presentation will explore the discovery phase of an arbitration…
The Securities and Exchange Commission today charged four brokers who formerly worked on the cash desk at a New York-based broker-dealer with illegally overcharging customers $18.7 million by using hidden markups and markdowns and secretly keeping portions of profitable customer trades. Four Brokers’ Fraudulent Scheme The SEC alleges that the brokers purported to charge customers…
Stockbrokers, or more accurately, their employer brokerage firms are required to report to The Financial Industry Regulatory Authority (FINRA), when their stockbrokers are the subject of customer complaints alleging sales practice violations, criminal actions, bankruptcies, or their conduct forms the basis of an arbitration or civil action by a public customer against the broker or…
The United States Securities & Exchange Commission, as required by Section 917 of the Dodd-Frank Wall Street Reform and Consumer Protection Act issued a report today on Investor Literacy. Retain Investors Lack Knowledge to Prevent Fraud Not surprisingly, the study found that U.S. retail investors lack basic financial literacy and that investors have a weak…
The Financial Industry Regulatory Authority (FINRA) has expelled a Texas-based broker dealer from membership for selling $23 million in private placement offerings without having a reasonable basis to believe that the offerings were suitable for its customers. Letter of Acceptance, Waiver and Consent Cambridge Legacy Securities LLC consented to the expulsion as part of a…
The Securities and Exchange Commission today announced that a non-profit corporation that offers securities to fund mortgage and construction loans to young Amish families in Ohio will ensure that its investors receive more timely and accurate information under an agreement reached with the SEC. SEC Investigates Amish Helping Fund The SEC investigated the Amish Helping…
Brokers and financial advisors of JP Morgan Chase have said they were encouraged by the investment bank to favor JP Morgan’s own products even when the product of competitors were less expensive or better-performing, according to a report in the New York Times. Some advisers told the newspaper they felt pressured to recommend proprietary products as…
Brokerage firm Merrill Lynch, Pierce, Fenner & Smith Inc. has agreed to pay $2.8 million to settle charges by the Financial Industry Regulatory Authority (FINRA) that the firm’s failure to supervise led to over-billing. From April 2003 to December 2011, Merrill Lynch charged a total of about $32 million in unwarranted fees to roughly 95,000…
Sometimes the moral decay that leads financial professionals to steal from their clients runs deeper than anyone could expect. Robert Bales’ Crimes For instance, the news is out that Robert Bales, the U.S. Army staff sergeant accused of massacring 16 Afghan civilians, was a former stockbroker on the losing end of a 2003 arbitration before…
Merrill Lynch Pierce Fenner & Smith has been censured and fined $1 million for its failure to arbitrate disputes with its employees over retention bonuses. The fine was part of a settlement with Merrill Lynch announced by the Financial Industry Regulatory Authority (FINRA) on Jan 25. A full-service broker-dealer with its principal offices located in…
The U.S. Supreme Court issued an opinion on Jan. 10 ruling in favor of a credit card company that sought to enforce a mandatory arbitration provision in its agreement with a class of consumers that sued the company for making misleading statements and charging excessive fees. The class of consumers who sued, called respondents in…
Wells Fargo Investments LLC has been fined $2 million for failure to supervise the conduct of one of its brokers who sold unsuitable reverse convertible securities to elderly customers, the Financial Industry Regulatory Authority, or FINRA, announced on Dec. 15. The firm was also censured. The fine also covered Wells Fargo’s also failure to provide…
Charles B. Rowley III, a stockbroker with Boston-based Detwiler Fenton & Co., has been sanctioned by the Financial Industry Regulatory Authority, or FINRA, for engaging in churning and unsuitable trading in the accounts of two customers. Letter of Acceptance, Waiver and Consent Charles B. Rowley agreed to pay restitution of roughly $24,000 plus interest to…
LPL Financial LLC has been fined $100,000 for failing to supervise Jack Kleck, a broker who sold unsuitably risky investments to clients in their 80s, the Oregon Department of Consumer and Business Services announced on Nov. 22. Boston-based LPL is a broker-dealer licensed by the State of Oregon and responsible for the activities of Jack…
The Financial Industry Regulatory Authority (FINRA) issued a regulatory notice this month that contained the results of a survey of retail broker-dealer firms regarding the use and oversight of senior designations in an effort to better understand their approach to a vulnerable segment of the population. One area of particular focus was the use of…
An analysis by The New York Times of the Securities and Exchange Commission (SEC) enforcement actions during the past 15 years has found that Wall Street firms have broken anti-fraud laws they had pledged not to breach in at least 51 cases. The New York Times Report These cases involved 19 different firms, according to…
A New Jersey investment advisor was sentenced to 14 years in prison recently after pleading guilty to one count of securities fraud and use of manipulative and deceptive devices plus one count of transacting in criminal property. According to Court Documents Sandra Venetis, 60, the founding principal and president of Systematic Financial Associates Inc., a…
UBS Securities LLC was fined $12 million and censured by the Financial Industry Regulatory Authority, or FINRA, for widespread system deficiencies and a failure to supervise that led to tens of millions of improper short sales. The firm violated federal securities laws and FINRA rules at various times from January 2005 through March 2010, with…
Everyone who represents injured investors knows that they often lose more than just money. Defrauded investors, generally early retirees, are often older, penniless, and have little to no prospect for re-employment. They lose everything and have nothing. Some take on menial minimum wage jobs, are forced to sell their homes, and move in with their…
Everyone knows, and has known, including apparently the US Congress, that Wall Street’s Kangaroo Court, also known as FINRA Securities Arbitration, is a sham. In 2008, based upon the perceived unfairness of arbitration, and particularly, the “unwillingness” of the judiciary to earnestly examine “egregious” arbitration awards, motivated Congress to seek to make these arbitrations “voluntary.”…
Last week, United States Representative Keith Ellison introduced the Investor Choice Act of 2015 (H.R. 1098), a bill to end pre-dispute mandatory or “forced” arbitration agreements and ban prohibitions on class action lawsuits in customer service contracts between investment advisers and broker-dealers and their clients. “Working Americans shouldn’t have to sign away their rights in order…
H.D. Vest Investment Securities, Inc. operates a network of over 4,500 independent registered representatives located in branch offices throughout the United States. One such individual, Lewis J. Hunter was a registered representative of HD Vest when he stole more than $300,000 from his customers. According to Hunter, his customers would be investing ion high yield…
Thomas Keough of North Reading, Massachusetts was barred by the United States Securities & Exchange commission for the sale of unregistered securities whil Keough was a registered representative with Raymond James Financial Services, Inc. and Morgan Stanley. The SEC found that beginning in approximately 2002 and continuing through 2009, Keough raised approximately $110 million from investors…
Malcolm Segal was a registered representative, and operated his own branch office of Aegis Capital Corp. in Langhorn, Pennsylvania operating under the name J&M Financial. Segal also controlled or operated another company, National CD Sales. Beginning sometime in 2013, it appears that Segal began to sell investors bank certificates of deposit, which at least according…
Brian Williamson, the Managing Director of the sub-advisor to the Oppenheimer Global Resource Private Equity Fund Manager consented to the entry of an Order finding that he willfully violated Section 17(a) of the Securities Act; Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and Section 206(4) of the Advisers Act and Rule 206(4)-8….
Last week, a California Superior Court Judge refused to certify class action claims by investors against MetLife Securities and New England Securities in connection with the fraudulent recommendation and sale of the securities of Diversified Lending Group Inc. to public customers. Representatives of New England Securities including Lawrence E. Bagby Jr., James C. Davidson Scott…
Welcome to America! You Can’t Make This Stuff Up America is the land of opportunity. Pakistani citizen and New York resident, Moazzam “Mark” Malik worked as a waiter, and NYPD traffic agent, and a security guard. After “working” at Lehman Brothers, JP Morgan Chase and Merrill Lynch, since 2002. Mark Malik manages more than $1…
For more than a decade, from at least February 1998 until June 2012, Dennis Fern Wright, a Lewistown, Pennsylvania stockbroker and insurance salesman associated with AXA Advisors, LLC., and, was entrusted with handling his customers’ retirement funds. However, at least according to the Securities & Exchange Commission, Wright lied to and stole over $1.5 million…
What practitioners have known for a long time: The Financial Industry Regulatory Authority’s Arbitration forum is unfair to investors. However, at least this time, there is empirical evidence to back up these claims of unfairness. Some History of Investor Unfairness By way of background, since 1987 and the Supreme Court’s holding in Shearson v. McMahon,…
Today the New York Attorney General Released the the False Claims Act case filed by Plaintiff-Relator David Danon against The Vanguard Group, Inc. (“VGI”), subsidiaries of VGI (collectively with VGI, “Vanguard”) and the Vanguard group of mutual funds (the “Funds”, and, collectively with Vanguard, the “Vanguard Group”). According to the unsealed complaint, Vanguard has operated…
Each year in Pennsylvania investors conservatively lose $3 billion as the result of securities fraud, Ponzi schemes and the sale of unregistered securities. Among the 50 states that are part of the North American Securities Administration Association, Pennsylvania is and always has been lowest on the list in terms of enforcement actions. Notwithstanding three lawyers,…
Former executives of ChinaCast Education Corp. (CAST) (“ChinaCast” or the “Company”) have been sued by the U.S. Securities Exchange Commission (the “SEC”) for securities fraud and insider trading. Chan Tze Ngon & Jiang Xiangyuan Sued by SEC The action, which was filed in the U.S. District Court for the Southern District of New York, was…
FINRA enforcement actions are rare because generally the offending broker or brokerage firms settles allegations of misconduct before a formal enforcement action is brought by entering into a Letter of Acceptance, Waiver and Consent or AWC, where offending broker or brokerage firm consents or admits to a narrow finding of facts, pays fines or penalties,…
Fort Lauderdale, Florida, February 4, 2012 (Globe Newswire) –Royal Alliance Associates, an AIG Advisor Group division owned by American International Group (NYSE: AIG), sued victims of a Ponzi scheme to block pending FINRA arbitration claims, where the victims have alleged that Royal Alliance Associates failed to supervise the sales agents who sold the fraudulent investments,…
A report released today by the Stanford Law School Securities Class Action Clearinghouse in cooperation with Cornerstone Research finds the number of securities fraud class actions filed in 2005 decreased more than 17 percent compared to 2004 levels, falling from 213 filings to 176. The 2005 filing rate is nearly 10 percent below the 1996 -…
A group of investors filed a class-action lawsuit on January 15, 2008 seeking nearly $500 million dollars in damages from Morgan Stanley, alleging their broker, Michael James Kazacos, gave them fraudulent investment advice and made false promises to Eastman Kodak retirees that never materialized. The plaintiffs are all former employees of Eastman Kodak Co in…
Fort Lauderdale, Florida, February 4, 2012 (Globe Newswire) –Royal Alliance Associates, an AIG Advisor Group division owned by American International Group (NYSE: AIG), sued victims of a Ponzi scheme to block pending FINRA arbitration claims, where the victims have alleged that Royal Alliance Associates failed to supervise the sales agents who sold the fraudulent investments,…
The Securities and Exchange Commission today charged Morgan Stanley and one of the firm’s former investment adviser representatives with securities law violations for misleading clients about the money managers being recommended to them and failing to disclose conflicts of interest. According to the SEC’s orders in the case, Morgan Stanley breached its fiduciary duty to…
Sixteen specialist panels will examine Cultural Considerations in International Arbitration: Bridging the Divide – Civil vs. Common Law Ad-hoc or Institutional Arbitration – The Good and the Bad Procedure Under the UNCITRAL Model Rules Drafting the Arbitration Clause – Addressing the Issues Anti-suit Injunctions – Protection of Legal and Equitable Rights Arbitration and the Feeling…
The US Securities and Exchange Commission issued cease-and-desist proceedings against Michael A. Horowitz and Moshe Marc Cohen from as the result of a fraudulent scheme to profit from the imminent deaths of terminally ill hospice and nursing home patients through the purchase and sale of more than $80 million in deferred variable annuities. The Scheme Michael…
The Financial Industry Regulatory Authority or FINRA announced today the it had entered into a regulatory settlement agreement, or Letter of Acceptance, Waiver and Consent with Berthel Fisher & Company Financial Services, Inc. As part of the settlement, FINRA found that from approximately 2007 through 2012, Berthel Fisher had an inadequate supervisory system and written…
Gone are the days of the penny stock and the “chop stock.” In the old days, in addition to house stocks, brokers would trade “lunch-time” stocks. A lunch time stock is a stock that trades “a quarter to one,” i.e. the bid is a quarter or 25 cents, but the offer is $1. So if…
The United States Securities and Exchange Commission, after an investigation, instituted administrative proceedings against Roy Dixon, Jr., a former registered representative of Professional Asset Management, Inc., a licensed broker dealer in Bloomfield Hills, Michigan Roy Dixon, Jr., age 50, resides in Atlanta, Georgia and was the owner and founding general partner of Onyx Capital Advisors,…
Samuel Delshaul Shoemaker was recently barred from associating with any FINRA member for allegedly disclosing personal confidential information of bank customers to a third party who was not authorized to receive it and for failing to provide information and testimony in the course of a FINRA investigation. In a default decision, the FINRA department of…
FINRA barred Scott Donovan Schroeder, formerly a broker at Milkie Ferguson Investments, for making unsuitable investment recommendations to elderly customers. According to FINRA, Scott Schroeder also made material misrepresentations and omitted to disclose material facts to customers. Schroeder also allegedly went against Milkie Ferguson policies by facilitating a loan application for a customer who used…
Arthur Lin was the branch manager of an LPL Financial office in Itasca, Illinois. According to the US Securities and Exchange Commission, Arthur Lin, and two others, Marcin Malarz and Jacek Sienkiewicz, both of whom have apparently fled to Poland, raised at least $14,380,000 from investors through the fraudulent unregistered offer and sale of promissory…
Lynn A. Simon was arrested for swindling investors of over a $1 million. Once authorities were alerted to his swindle, because investors stopped receiving their interest payments, Simon disappeared and was later traced to Alabama and New Mexico. During the course of his association with CFD Investments, Inc., while operating his own office under the…
Steven B. Heinz, of Provo, Utah, a registered stockbroker of Ogilvie Security Advisors Corp. was charged by the United States Securities and Exchange Commission for multiple violations of federal securities laws. According to the SEC, beginning in January 2012, during his association with Ogilvie Security Advisors Corp., Heinz provided investment advice and offered and sold…
Donald Richard Dahn (aka, “Rick” Dahn) was barred from associating with any FINRA member for borrowing money from bank customers to pay the operating expenses of a company Dahn ran with his brother. On October 14th, Donald Dahn submitted a Letter of Acceptance, Waiver and Consent (“AWC”), neither admitting nor denying FINRA’s findings but accepting…
The United States Securities Exchange Commission and the Department of Justice filed charages against Gurudeo “Buddy” Persaud. According to documents filed by the SEC from no later than July 2007 until at least January 2011, Persaud, directly and through his company, While Elephant Trading Company LLC, operated an offering fraud that, by November 7, 2007,…
Glen A. Galemmo, a Cincinnati stockbroker associated with Landmark Investment Group, Inc., plead guilty in United States District Court to criminal charges that between 2005 and July 2013, he operated a Ponzi scheme that took in at least $100 million from investors. According to the federal indictment Galemmo operated the Queen City Investment Fund, along…
Martin John Maloney (A.K.A. Marty Maloney, and Martin J. Maloney), previously associated with MetLife Securities Inc. at 150 Essjay Rd., in Williamsville, NY 14221, was barred from association with any FINRA member in any capacity in October of 2013 for converting $220,000 of a MetLife customer’s money. Marty Maloney led a customer and his wife…
On October 16, 2013 FINRA barred David C. Key from association with any FINRA member in any capacity. Without admitting or denying the findings, Mr. Key consented to the sanction by submitting a Letter of Acceptance, Waiver and Consent (“AWC”), which FINRA accepted. David Key was a registered Principal with PFS Investments Inc. (PFSI, also…
FINRA has accused James Arnold Busch, a former Wells Fargo & Co. (WFC) broker, of stealing at least $1.3 million from customers in Georgia. Most of these customers were elderly women. Without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Busch submitted a Letter of Acceptance,…
Wellesley Massachusetts stockbroker Paul J. Dumouchel was barred from the securities industry for life because he used an 82 year old Alzheimer’s patient to make $63,000 in commissions. According to the FINRA The Financial Industry Regulatory Authority notes, Dumouchel while associated with the brokerage firm, H. Beck, drove the woman to five local banks and…
Investment fraud rarely involves actual theft. Investors may lose their savings as the result of the tainted recommendation to purchase defective financial products, brokers may “sell away” or engage in the sale of unregistered promissory notes or other Ponzi schemes, but actual theft is generally quite rare. However on December 3, 2013, the Financial Industry…
Charles Vista, LLC, formerly known as D.C. Evans & Co. (“DCE”), was a registered broker-dealer with its principal place of business at 100 Williams Street, 18th Floor, New York, New York 10039. DCE was acquired by Gregg C. Lorenzo, through GJL Holding Company, LLC, following his departure from John Thomas Financial in 2009. Lorenzo is…
Jinesh Brahmbhatt also known as “Hodge,” was permanently barred by the Financial Industry Regulatory Authority or FINRA in connection with an alleged $18 million fraud perpetrated against a number of high profile National Football League and National Basketball Association players. Brahmbhatt, also conducting business under the name Jade Private Wealth Management, agreed to an a…
The Securities and Exchange Commission today sanctioned three investment advisory firms Modern Portfolio Management Inc., Equitas Capital Advisers LLC, and Equitas Partners LLC for repeatedly ignoring problems with their compliance programs. The enforcement actions arise from the agency’s Compliance Program Initiative, which targets firms that have been previously warned by SEC examiners about compliance deficiencies but…
According to Cerulli Associates Inc., the big wire-houses manage over $4.7 trillion in client assets. However, it is estimated that $50 billion is wasted each year by clients paying undisclosed and unnecessary fees or losses based on inappropriate product choices and high expense levels. When customer go from one brokerage firm to another, the practice…
Nicholas J. Guiliano, Esquire of the Guiliano Law Group, P.C. is scheduled to speak at the Rutgers Law School Camden on April 12, 2013 on the history and practice of federal securities arbitration law, including recent developments in the law, as part of a course entitled Securities Litigation and Enforcement. His lecture will focus on…
FINRA Publishes 2012 Year in Review highlighting enforcement actions, including non-traded REITS, Reverse and Leveraged ETF Funds, and Structured Products. FINRA claims that it initiated 1,846 routine examinations, more than 800 branch office examinations, and 5,100 cause examinations in response to events such as customer complaints, terminations for cause and regulatory tips. How many of these…
A putative class action was filed Monday against Behringer Harvard REIT I, a $4.4 billion real estate investment trust in U.S. District Court for the Northern District of Texas by any investor who purchased 1,275 shares of the trust from 2004 to 2008. Behringer Harvard is one of more than a half dozen large non-traded…
On September 10, 2012, Judge Koeltl of the United States District Court for the Southern District of New York dismissed a class action complaint against ProShares based upon the sale of its inverse and leveraged ETF funds. ProShares created and operated three types of ETFs: “Inverse ETFs,” the goal of which was for the net asset…
This week the SEC Charged J.P. Turner & Co. with the failure to supervise and three brokers for Churning. The Securities and Exchange Commission charged three brokers Ralph Calabro, Jason Konner, and Dimitrios Koutsoubos with the churning of customer accounts while they were associated as registered representatives of JP Turner. JP Turner has approximately 513…
In 2011 Bank of America Merrill Lynch, in conjunction with ETF Securities, launched the first Exchange Traded Fund (ETF) linked to European equity volatility, listed on the London Stock Exchange. The ETFX-BofAML IVSTOXX ETF is linked to the EURO STOXX 50 Investable Volatility Index (the Investable VSTOXX, or IVSTOXX), an investable index which reflects the…
Broker William Thomas Johnson Jr. has been permanently barred by the Financial industry Regulatory Authority (FINRA) for misappropriating about $100,000 in customer funds. On June 1, Johnson submitted a Letter of Acceptance, Waiver and Consent (AWC) to settle a number alleged FINRA rule violations. He accepted and consented to an entry of findings by FINRA…
On July 13, a three-person arbitration panel of the Financial Industry Regulatory Authority (FINRA) handed down a $1.7 million arbitration award against JHS Capital Advisors Inc. and one of its former brokers. Claimant John Sisk claimed excessive trading and churning, common law fraud, ordinary negligence, gross negligence, breach of contract, negligent retention and hiring, control…
The Financial Industry Regulatory Authority (FINRA) implemented a new suitability rule on July 9 that broadens the list of factors firms and brokers need to analyze before recommending securities or investment strategies. The SEC Approves New FINRA Rule The Securities and Exchange Commission (SEC) approved the new FINRA Rule 2111 in November 2010. Since then,…
The Financial Industry Regulatory Authority (FINRA) has filed a complaint against Charles Duane Lewis, a broker with H.D. Vest Investment Services who misappropriated more than $500,000 from an elderly customer. The complaint, filed by FINRA’s Department of Enforcement on June 25, states that Lewis misappropriated the money between December 2007 and May 2010 from an…
Merrill Lynch, Pierce, Fenner & Smith Inc. has been fined $450,000 by the Financial Industry Regulatory Authority (FINRA) for failure to supervise operations to prevent unsuitably high concentrations of structured products from building up in customer accounts. The firm submitted a Letter of Acceptance, Waiver and Consent (AWC) to settle alleged violations of FINRA rules….
OppenheimerFunds Inc. agreed to pay roughly $35 million to settles charges by the Securities and Exchange Commission (SEC) that it made misleading statements to investors in two mutual funds that rapidly lost value during the 2008 financial crisis. The settlement consists of a $24 million penalty, disgorgement of about $9.8 million and prejudgment interest of…
Occupy Wall Street filed an amicus curiae brief on May 21 urging the 2nd U.S. Court of Appeals to affirm the district court’s rejection of a $285 million settlement agreement Citigroup reached last year with the Securities and Exchange Commission (SEC) to resolve charges that the giant bank had gamed the mortgage bond market. The…
Two subsidiaries of Morgan Stanley were fined by the Financial Industry Regulatory Authority (FINRA) earlier this month for negligently making material misrepresentations to investors regarding the call price and yield of certain fixed-income securities, as well as negligently failing to disclose that these securities were interest-only. The misrepresentations were the result of incomplete information that…
Scott B. Hostutler, formerly a broker with Edward Jones, was suspended for 10 days by the Financial Industry Regulatory Authority (FINRA) for trading in a customer’s account without authorization. Hostutler was fined $5,000 in addition to his suspension from association with any FINRA member in any capacity. The sanctions were set out in a Letter…
UBS Financial Services Inc. has agreed to pay a $1.5 million fine after the Financial Industry Regulatory Authority (FINRA) charged the firm with failure to supervise the sale of complex financial products known as non-traditional exchange-traded funds, as well as for making unsuitable recommendations of these funds. In addition to the fine, UBS Financial Services…
Citigroup Global Markets Inc. has been fined $2 million by the Financial Industry Regulatory Authority (FINRA) for failure to supervise and for making unsuitable recommendations in connection with the sale of complex financial products known as non-traditional exchange-traded funds. The firm submitted a Letter of Acceptance, Waiver and Consent (AWC) to settle a FINRA disciplinary…
After he misappropriated $734,000 from various customers, Joel W. Carlson, a former broker with Sagepoint Financial Inc., was permanently barred from the business by the Financial Industry Regulatory Authority (FINRA). Carlson is also facing a civil lawsuit alleging $50,000 in damages stemming from fraudulent indexed annuity sales and misappropriation. The litigation is pending 2nd Judicial…
Thomas R. Fortino, a former broker with First Allied Securities Inc., was fined and suspended by the Financial Industry Regulatory Authority (FINRA) after he engaged in business outside his firm, often called selling away, and misled his firm about these activities. Fortino submitted a Letter of Acceptance, Waiver and Consent (AWC) that resolved the FINRA…
AXA Advisors LLC has been fined $50,000 by the Financial Industry Regulatory Authority (FINRA) and censured for its failure to supervise a broker who misappropriated $122,000 from the money market account of a customer, 70 percent of the account’s value. Letter of Acceptance Waiver and Consent The firm submitted a Letter of Acceptance Waiver and…
Timothy David Cochrane has been permanently barred from the financial industry as part of a settlement of an action against him for misappropriating $600,000 in customer funds. On March 30, the Financial Industry Regulatory Authority (FINRA) accepted a Letter of Acceptance, Waiver and Consent (AWC) submitted by Cochrane to resolve alleged rule violations. Cochrane neither admitted…
Raymond James Financial Services Inc. has agreed to pay a $400,000 fine to settle allegations that it failed to supervise a customer who used accounts he had with the firm to operate a multi-million-dollar Ponzi scheme.The firm submitted a Letter of Acceptance Waiver and Consent (AWC) to resolve a disciplinary action brought by the Financial…
Last month, brokerage firm Stifel, Nicolaus & Co. Inc. settled a disciplinary action brought against it by the Financial Industry Regulatory Authority (FINRA) after one of the firm’s brokers ran a Ponzi scheme that defrauded customers. The terms of the settlement included a $350,000 fine and a censure. Stifel Nicolaus also agreed to pay restitution…
Roland Craig Matatics, a former broker with MetLife Securities Inc. in Keene, N.H., has been permanently barred from the financial industry for misappropriating $10,000 from a customer suffering from dementia. Roland Craig Matatics Submits an AWC The money was later returned and Matatics submitted a Letter of Acceptance, Waiver and Consent (AWC) to settle an action…
Last month Leland O. Stevens, a former broker with Great American Advisors Inc., settled a disciplinary action against him after he served up his unwitting customers to a Ponzi scheme. The Financial Industry Regulatory Authority (FINRA) filed a complaint against Stevens last year for his role in the sale of promissory notes that turned out…
Cornerstone Core Properties REIT Inc., a non-traded real estate investment trust, has sent a letter to its shareholders bearing some bad news: The REIT’s valuation has plunged from the original issue price of $8.00 per share down to $2.25, a dive of about of 72 percent. Cornerstone’s Letter to Shareholders The company reported the revised…
Last month, the Financial Industry Regulatory Authority (FINRA) issued an investor alert to remind investors that a careful review of their periodic brokerage account statements is an important way for them to stay informed about what brokers are doing with their money. The alert, titled “It Pays to Understand Your Brokerage Account Statements and Trade Confirmations,”…
Jimmy Wayne Freeman, a broker with Texas-based PlanMember Securities Corp., was ordered by the Texas Securities Board to pay more than $500,000 in restitution to investors after he sold them securities issued by an outside firm without his firm’s permission and without holding the appropriate securities license. Freeman was also suspended for 12 months from…
Robert Bales, the US Army staff sergeant accused of massacring 16 Afghan civilians, was a former stockbroker, who enlisted in the U.S. Army to apparently avoid paying an elderly Ohio couple of their life savings in a stock fraud. According to FINRA records, from 1996 through 2000, Bales was associated with at least seven brokerage…
The Financial Industry Regulatory Authority (FINRA) has sanctioned Christine L. Cantone and her firm for their failure to supervise a broker who sold fictitious investments to customers through which he misappropriated over $1.6 million. Cantone & Cantone Research Inc. Censored & Fined Pursuant to an FINRA order dated Feb. 22 that accepted an offer of…
Anthony L. Semadeni, a former stockbroker with World Group Securities, has been barred from the financial industry for two years and ordered to pay up to $60,000 in restitution plus interest to customers for borrowing money from them and never fully paying it back. Semadeni also lied to World Group about the loans he received…
A former Edward Jones administrator has been permanently barred from the financial industry after misappropriating a total of $63,000 from 21 customers. According to a default decision issued by the Financial Industry Regulatory Authority (FINRA) on Feb. 15, Carolyn Avia Harmon misappropriated $63,000 in customer funds between November 2006 and September 2009. She also failed…
A federal judge in Los Angeles has ordered Stanley C. Brooks, the former CEO of Brookstreet Securities Corp., to pay the maximum civil penalty of $10 million in a securities fraud case that goes back to the financial crisis, the Securities and Exchange Commission (SEC) announced on March 2. According to the docket, Judge David…
Over five years, former broker James Scott McKee defrauded the customers of the brokerage firms where he worked out of nearly $1 million, using lies and omissions to induce them to invest in various real estate ventures in which he had a direct or indirect financial interest, according to a complaint filed by the Financial…
Evidently, it slipped the mind of one New York stockbroker that dead men can’t trade. Eric Anthony Foster, a stockbroker with Halcyon Cabot Partners Ltd., has been fined $10,000 by the Financial Industry Regulatory Authority (FINRA) and suspended for three months for unauthorized trading in the account of a deceased customer while he worked for…
Broker-dealer Stone & Youngberg have been fined $350,000 and censured by the Financial Industry Regulatory Authority (FINRA) for charging excessive markups on trades of collateralized mortgage obligation securities (CMOs) for retail customers. The firm was also required to pay about $206,000 in restitution to customers, without interest, per the terms of a Letter of Acceptance,…
Clyde M. Thornburg, a former stockbroker with NEXT Financial Group Inc., was charged earlier this month with unsuitable short-term trading and switching in the accounts of elderly and unsophisticated investors. The FINRA Complaint On Feb. 9, the Financial Industry Regulatory Authority (FINRA) filed a complaint against Thornburg, a Florida-based registered representative with NEXT. The affected…
Philip Eckstein, a former MetLife Securities Inc. broker, was permanently barred from association with any members of the Financial lndustry Regulatory Authority (FINRA) after he converted $10,000 of an elderly customer’s money to his own use. FINRA announced the sanction in a February 8, 2012 Order accepting Eckstein’s offer of settlement after a disciplinary proceeding…
In a striking example of the ineffectiveness that can plague securities regulation, investment adviser Robert Pinkas allegedly misappropriated $800,000 from a client to pay for disgorgement and costs resulting from a previous case brought against him by the Securities and Exchange Commission (SEC). On Feb. 15, the SEC issued an order to start administrative and…
A former stockbroker for Wells Fargo Advisors LLC has been fined $5,000 and suspended from the financial industry for six months for changing dates and account numbers on forms without customers’ permission. In June 2010, Judith Martin altered the dates and account numbers on 25 Initial Public Offering (IPO) Certification Forms that the Wells Fargo…
Family members may want to stay informed about this aspect of their relatives’ lives, to make sure unscrupulous financial professionals do not take advantage of senior citizens who are cognitively impaired. About 5.2 million Americans over the age of 65 suffer from Alzheimer’s, according to a 2011 report from the Alzheimer’s Association. About 200,000 people…
Florida-based brokerage firm 1st Discount Brokerage Inc. has been censured and fined $40,000 by the Securities and Exchange Commission (SEC) for its failure to supervise a broker who defrauded investors of nearly $9 million. In addition, Michael R. Fisher, executive-vice president of the firm at the time, was ordered to pay $10,000, according to the…
Citigroup Global Markets Inc. was censured and fined $725,000 this month by the Financial Industry Regulatory Authority (FINRA) for its failure to comply with disclosure requirements. From January 2007 through about March 2010, Citigroup Global failed to comply with the disclosure requirements of Rule 2711 of the National Association of Securities Dealers (NASD), a predecessor to…
Penny stock promoter First Resource Group LLC and its principal David H. Stern were charged with three counts of fraud by the Securities and Exchange Commission (SEC) in a complaint filed on Jan. 26. The SEC Complaint Stern and his Florida company fraudulently manipulated the market for the stock of two small, thinly traded companies,…
Former stockbroker Ralph Edward Thomas Jr., who pleaded guilty to mail fraud in September, has been barred for life by the Financial Industry Regulatory Authority (FINRA) for conversion of more than $800,000 in customer funds to his own use. According to FINRA, Thomas misappropriated the money from three vulnerable customers between December 2001, and July…
Former LPL Financial Corp. stockbroker Amrita Holden has been permanently barred by the Financial Industry Regulatory Authority (FINRA) for wrongfully converting about $187,000 in customer funds to her own use. While employed by LPL, Holden forged the signature of an elderly customer on distribution request forms for the customer’s Individual Retirement Account (IRA). These forms…
A purported class-action lawsuit brought by a broker-dealer against the predecessor to the Financial Industry Regulatory Authority Inc., or FINRA, went out meekly this week, when the U.S. Supreme Court denied without explanation the plaintiff’s petition for the case to be heard. The suit, Standard Investment Chartered Inc v. National Association of Securities Dealers, was…
Morgan Stanley & Co. LLC has been censured and fined $600,000 by the Financial Industry Regulatory Authority, or FINRA, for failure to supervise its stockbrokers to ensure compliance with its own guidelines regarding structured products. As a result of this failure of supervision, the firm’s stockbrokers recommended a total of 14 unsuitable structured product investments…
The receiver appointed to handle the fallout from one of the largest Ponzi schemes in Minnesota history has filed suit in federal court in Minneapolis against NRP Financial Inc. for its failure to supervise a registered broker who participated in the fraud that bilked investors out of $150 million. NRP was a registered broker-dealer with…
On October 4, 2011, a FINRA Arbitration Panel sitting Portland, Oregon, in the matter of James D. Brogden, et. al. v. Merrill Lynch Pierce Fenner & Smith, Inc., FINRA Arbitration Number 10-01725 rendered an arbitration award against Merrill Lynch for $96,049 of the $309,358 in damages sought in connection with the recommendation to purchase Federal…
The Financial Industry Regulatory Authority, or FINRA does not take kindly to stockbrokers who fail to disclose tax liens, perhaps because such behavior can signal un-trustworthiness, the last thing you want to see in a stockbroker. If you are a stockbroker who fails to timely disclose such liens per FINRA rules, you are likely to…
The migration of stockbrokers into the advisory arena through the marketing of brokers as “trusted advisers” and “financial advisors” over the years has fueled confusion among investors as to the services provided by stockbrokers and investment advisers as well as the level of protection. The dirty secret is that aside from filling out an Investment…
Welcome to the age of the Ponzi Scheme, the result of the non-regulation of “hedge funds.” Madoff, Nagel, Stanford, Spitzer, the list goes on and on, millions, tens of billions of dollars swindled by Ponzi scheme scam operators, always, or at least most often leaving investors with nothing, except whatever meager sum the government may…
The Financial Industry Regulatory Authority, recently filed a proposed rule change with the U.S. Securities & Exchange Commission to to adopt NASD Rule 2830 (Investment Company Securities or mutual fund shares) as FINRA Rule 2341 (Investment Company Securities) with certain important changes. NASD Rule 2830 NASD Rule 2830 regulates brokerage firms’ activities in connection with…
The Guiliano Law Group. P.C. has announced the filing of securities arbitration claims before the Financial Industry Regulatory Authority (FINRA) on behalf of investors suffering losses in Inverse and Leveraged Exchange Traded Funds or ETFs. Many investors were sold these securities based upon the notion that they could be a long term hedge. Most ETFs track…
The United States Securities and Exchange Commission announced that Wells Fargo Securities LLC consented to an $11.2 million fine in connection with the sale of collateralized debt obligations (CDOs) in late 2006 and early 2007. The SEC found that Wachovia Capital Markets violated the securities laws by fraudulently charging undisclosed and excessive markups in the…
Just when you thought that you heard it all. The New York Stock Exchange disciplined former Morgan Stanley stockbroker Charles Winitch of Scarsdale, New York, for unauthorized trading, churning or excessive activity, and breach of fiduciary duty with respect to the accounts of his customers. Mr. Winitch’s fraudulent conduct, however, relates to the accounts of…
Following the 2003 Global Settlement with FINRA and the Securities & Exchange Commission, were Morgan Stanley paid $125 million in fines, disgorgement, and “procurement of Independent Research,” it seems Morgan Stanley has been caught again publishing inaccurate and misleading investment research report, which fail to disclose Morgan Stanley?s financial interests, and conflicts of interest to…
The man who predicted in March 2007 the collapse of the mortgage-backed securities market now predicts that Wall Street banks are creating the next investment bubble by selling opaque and unregulated structured notes to investors hunting for yield. Richard Christopher Whalen Whalen wrote today in a report, using the same “loophole” that allowed over-the-counter sales…
Securities arbitration results from the Financial Industry Regulatory Authority (“FINRA”) Office of Dispute Resolution reporting the outcomes of customer initiated investment related arbitrations against stockbrokers and investment firms has been released for 2009. Not surprisingly, the number of FINRA customer initiated arbitration cases filed in 2009 increased 43% from 4,982 cases in 2008 to 7,137…
John Edward Mullins and wife allegedly drained their client’s trust while she was in a nursing home. A former Morgan Stanley broker was barred today by the Financial Industry Regulatory Authority Inc. for allegedly misappropriating $11,156.47 from the charitable foundation of a 97-year-old nursing home resident who was his client for more than 20 years….
FINRA Fines Bank Broker-Dealers $1.65 Million for Supervisory Failures in Variable Annuity, Mutual Fund and UIT Transactions. Five Firms Sanctioned, One Charged with Unsuitable VA Sales to the Elderly Washington, D.C. — The Financial Industry Regulatory Authority (FINRA) announced today that it fined five bank broker-dealers a total of $1.65 million for deficient supervision and…
Financial crises have a way of jolting investors into seeing that perhaps their brokers weren’t such trustworthy advisers after all. Requests for arbitration hearings are up 85 percent so far this year at the Financial Industry Regulatory Authority, the only place investors can go when they think they have been fleeced. Going to court isn’t…
According to the latest figures from the Financial Industry Regulatory Authority (FINRA), through October 2008, investment arbitration claims are up 49% from 2007. In addition, during the first 10 months of 2008, more cases have been already been filed than were filed in all of last year. Most brokerage agreements contain provisions that any disputes…
Last week I told you about what happened to Hal and his wife, both 67, retired, and long time readers. From more than a million dollars in their 401K account as of January, 2006, their investments have lost close to $750,000. Why? What Went Wrong? “In our final preparations for retirement, in early 2006 even…
If your stockbroker sold you improper, excessively risky investments, or — failed to disclose the riskiness of what appeared as an otherwise conservative investment, and as a result you lost your shirt — then today’s story will be especially relevant. For my readers who are stockbrokers, I’ll tell you right now that I’m going to…
Philadelphia, PA (MarketWire) November 6, 2008 –The Guiliano Law Group, P.C., a leading securities lawyer firm in Philadelphia, Pennsylvania announced today it is actively investigating and pursuing securities fraud claims against certain securities broker-dealers resulting from the risky or unsuitable recommendation of securities. Investment trusts, labor unions, pension funds, local municipalities, school boards and charitable…
Washington, D.C. – The Financial Industry Regulatory Authority (FINRA) announced today that it has imposed a $250,000 fine against J.P. Turner & Company, LLC of Atlanta, GA, for failing to have an adequate supervisory system designed to ensure that its registered representatives charged customers fair and reasonable commissions on stock trades. As part of the…
LPL Financial was sued last week in Phoenix for its role in an affinity fraud case involving members of a local church and an ex-broker who allegedly stole $5 million from at least 40 victims. The lawsuit alleges that the broker, James Buchanan, was able to steal $382,376 from an elderly married couple because LPL…