Michael Alan Biedny of Clarence New York a stockbroker formerly registered with Raymond James Financial Services has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Biedny concealed from Raymond James that he took $118,000 from a senior customer….
Lawrence John Fawcett Jr. (also known as Larry Fawcett Jr.) has been named in a customer initiated investment related arbitration claim where the customer was awarded $35,663.00 in compensatory and punitive damages founded on a FINRA Arbitrator finding Fawcett liable on the customer’s causes of action including breach of fiduciary duty and fraud as it…
Lawrence Burton Goldstein (also known as Larry Goldstein) of Sparks Nevada a stockbroker formerly registered with McNally Financial Services Corporation has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Goldstein obstructed a FINRA investigation into allegations of his potential excessive and unsuitable trading in…
Marc Scott Steinberg of Boca Raton Florida a stockbroker formerly registered with Dawson James Securities has been referenced in a customer initiated investment related arbitration claim which was settled for $18,000.00 in damages based upon allegations that investment recommendations were not suitable and that the customer sustained losses on stock transactions executed by Steinberg at…
Gordon Tong Quan of Pasadena California a stockbroker formerly registered with Cetera Advisors Networks LLC has been referenced in a customer initiated investment related arbitration claim which was settled for $25,000.00 in damages based upon allegations that investment recommendations made to the Cetera Advisor Networks customer by Quan had failed to be suitable and had…
Christopher Paul Puffer of Louisville Kentucky a stockbroker formerly registered with Money Concepts Capital Corp and Money Concepts Advisory Services is the subject of a customer initiated investment related arbitration claim that was settled for $14,500.00 in damages based upon allegations of negligence and a breach of contract governing the customer’s alternative investment purchases including…
Lynn Dale Cawthorne of Shreveport Louisiana a stockbroker formerly registered with Cambridge Investment Research Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a Decision and Order of Offer of Settlement containing findings of Cawthorne failing to comply with FINRA during an investigation concerning Cawthorne’s…
Wills Schneider Henriquez (also known as Wills S. Henrtquez) of Brooklyn New York a stockbroker formerly registered with Network 1 Financial Securities Inc. is the subject of a customer initiated investment related arbitration claim which was resolved for $75,000.00 in damages based upon allegations that a fiduciary duty that was owed to the customer had…
Jeffrey Clay Templeman of Norfolk Virginia a stockbroker currently registered with Wells Fargo Advisors has been referenced in a customer initiated investment related written complaint on March 15, 2019 where the customer requested unspecified damages founded on allegations that the customer had been steered by Templeman towards investing in mutual funds without being provided clarity…
Efrain Balderrama Trujillo of Los Angeles California a stockbroker formerly registered with Financial West Group has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity and has been fined $20,000.00 based upon findings that he neglected to supervise those of his stockbrokers who executed unsuitable securities and options…
David Todd Phillips (also known as Todd Phillips) of Gilbert Arizona a stockbroker formerly registered with Moloney Securities Co. and ProEquities Inc. has been fined $5,000.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that he engaged in private securities transactions involving…
Brittney Jade Sias (also known as Rosalie P. Sias) of Westlake Village California a stockbroker formerly registered with Western International Securities Inc. is the subject of a customer initiated investment related arbitration claim where the customer requested up to $500,000.00 in damages based upon allegations of bad investment advice concerning non-traded real estate investment trusts…
Matthew Thomas Jennings of Johnston Iowa a stockbroker formerly registered with Edward Jones has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he did not comply with a FINRA investigation into allegations of him offering investments to customers outside the auspices of Edward Jones….
Ronald Reed McCook of Scottsdale Arizona a stockbroker currently registered with First Allied Securities Inc. and an investment adviser representative of Cetera investment Advisers LLC has been referenced in a customer initiated investment related arbitration claim in which the customer requested unspecified damages supported by allegations that the customer had been placed in real estate…
Kurt Jason Gunter of Austin Texas a stockbroker formerly registered with Stifel Nicolaus Company Incorporated has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he made recommendations that were not suitable for Stifel Nicolaus customers as it pertained to unit investment…
Philip Anthony Simone of Irvine California a stockbroker formerly registered with AXA Advisors LLC has been fined $12,000.00 and suspended for eleven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Simone borrowed funds from elderly customers and then failed to be forthcoming about it with…
Raul Jorge Benitez of Aventura Florida a stockbroker formerly registered with SunTrust Investment Services Inc. has been referenced in a customer initiated investment related written complaint which was resolved for $8,486.24 on March 11, 2019 founded on allegations that the customer had been provided with unsuitable investment advice by Benitez concerning a managed investment account….
Thomas Wayne Chandler of Fort Lauderdale Florida a stockbroker formerly registered with Kovack Securities Inc. has been terminated from employment on April 3, 2020 founded on allegations that Chandler neglected to abide by procedures and policies of the securities broker dealer in reference to customer accounts. Chandler was associated with Kovack Securities between March 25,…
Harry Seth Datys of New York New York a stockbroker formerly employed by WestPark Capital Inc. has been fined $20,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he advised customers of WestPark to purchase promissory notes that were not suitable for them and…
Barry David Abrams of Marlton New Jersey a stockbroker formerly employed by Ameriprise Financial Services is referenced in a customer initiated investment related arbitration claim where the customer sought $20,000.00 in damages based upon accusations that the customer had been placed into unsuitable investments including Corporate Capital Trust and FS Energy and Power (FSEP) which…
Giustino DeStefano (also known as Justin Antonio DeStefano) of Williamsville New York a stockbroker formerly employed by Merrill Lynch and Securities America is the subject of a customer initiated investment related arbitration claim which was settled for $485,000.00 in damages supported by allegations of elder abuse and the violation of California Securities Act. Financial Industry…
Matthew Evan Eckstein of Syosset New York a stockbroker formerly employed by Sisk Investment Services Inc. has been suspended by Financial Industry Regulatory Authority (FINRA) based upon allegations that he neglected to pay compensatory damages to a customer after being found liable for causing the customer’s investment losses. Case No. 18-02864 (Nov. 18, 2019). FINRA…
Mitchell Toby Yanow of Boca Raton Florida a stockbroker formerly associated with Stifel Nicolaus Company Incorporated has been barred from being a stockbroker or investment adviser representative or otherwise associating with any securities broker dealer or investment advisory according to an SEC Order based on Yanow pleading guilty to wire fraud. In the Matter of…
Michael Harvey Siva of Morristown New Jersey a stockbroker formerly registered with Morgan Stanley has been barred from being a stockbroker or an investment adviser representative or otherwise associating with any securities broker dealer or investment advisory according to a Securities Exchange Commission (SEC) Order based on Siva pleading guilty to conspiracy to commit securities…
Michael Joseph Iannarino (also known as Mike Iannarino) of Columbus Ohio a stockbroker formerly registered with Private Client Services LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Iannarino failed to comply with a FINRA investigation into accusations of his recommendations and sales…
Bradley Carl Mascho of Frederick Maryland a stockbroker formerly associated with Western International Securities has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative or otherwise associating with any securities broker dealers or investment advisories according to an SEC Order based on findings that Mascho pled guilty to…
Gregory Walter McCloskey (also known as Gregory Walter Meier) of Newport Beach California a stockbroker formerly registered with Westpark Capital Inc. is the subject of a Financial Industry Regulatory Authority (FINRA) investigation concerning McCloskey’s possible engagement in private securities transactions and his possible obstruction of the regulator’s investigation into accusations of his misconduct. FINRA Case…
Albert Harkless III of Temple Hills Maryland a stockbroker formerly registered with PFS Investments Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he converted a customer’s funds. Letter of Acceptance Waiver and Consent No. 2018060290901 (Apr. 20, 2020). According to…
Charles Henry Postel (also known as Chuck Postel) of Westlake Ohio a stockbroker formerly registered with Stifel Nicolaus Company Incorporated has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that the stockbroker effected unauthorized transactions in customer accounts. Letter of Acceptance Waiver…
Vincent Charles Meleco of Albany New York a stockbroker registered with Wells Fargo Advisors LLC is the subject of a customer initiated investment related complaint on September 24, 2019 in which the customer requested $123,000.00 in damages based upon allegations that omissions were made to the customer by the stockbroker and that the customer had…
Carl George Antaki of Melville New York a stockbroker formerly employed by First Standard Financial Company LLC has been identified in a customer initiated investment related arbitration claim where the customer sought $100,000.00 in damages founded on accusations of bad stock trades being executed in the customer’s account during the time that Antaki was employed…
Dustin Michael Blount of Vicksburg Mississippi a stockbroker formerly associated with MML Investors Services LLC has been barred from associating with any FINRA member in any capacity supported by allegations that the stockbroker neglected to respond to FINRA’s request for information. Case No. 2019061481901 (Mar. 9, 2020). According to FINRA Public Disclosure, Blount was not…
William Christian Gennity (also known as Billy Gennity) of Staten Island New York a stockbroker formerly registered with First Standard Financial Company LLC has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon accusations that the stockbroker failed to comply with a FINRA Arbitration Award in which…
Michael Allan Bressman of Chatham New Jersey a stockbroker formerly registered with FCG Advisors LLC has been barred from associating with any FINRA member in any capacity supported by allegations that the stockbroker neglected to respond to FINRA’s request for information. FINRA Case No. 2019061168201 (Jan 13, 2020). According to FINRA Public Disclosure, Bressman was…
Jill Marie Cody (also known as Jill Marie Tramontano) of Spring Lake New Jersey a stockbroker associated with Westminster Financial Securities Inc. and Concorde Investment Services LLC has been referenced in a customer initiated investment related arbitration claim which has been settled for $125,000.00 in damages supported by allegations that (1) misrepresentations were made to…
Gustavo Trujillo Franco of Old Bridge New Jersey a stockbroker formerly registered with Global Strategic Investments LLC (now known as Gentem Capital LLC and LevelX Capital LLC) has been charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that he neglected to provide recorded testimony to the regulator during the time that it…
Vincent James Mazza of Jersey City New Jersey a stockbroker employed by National Securities Corporation has been barred by Financial Industry Regulatory Authority (FINRA) from associating with any member in any capacity founded on accusations of the stockbroker’s failure to comply with the regulator’s request for information. Case No. 2018060932001 (Oct. 28, 2019). FINRA Public…
James William Flower (also known as Jim Flower) of Garden City New York a stockbroker currently registered with Spartan Capital Securities is the subject of an investigation initiated by Financial Industry Regulatory Authority (FINRA) on October 15, 2019. According to Public Disclosure, the investigation concerns allegations that the stockbroker recommended excessive trades to a customer….
Tara Lueddeke is a retail investor. National Securities Corp. is a FINRA registered broker-dealer in New York. According to securities regulators, National Securities has more than 577 registered representatives operating from more than 84 geographically dispersed or branch offices across the United States. National has been subject to numerous regulatory actions for the failure to…
Steve Jeffrey Cummings of Fort Deposit Alabama a stockbroker formerly employed by Berthel Fisher Company Financial Services Inc. is the subject of a customer initiated investment related complaint on July 30, 2019 where the customers requested more than $5,000.00 in damages based upon allegations that (1) false or misleading statements had been made by the…
Martin David Batstone (also known as Marty David Batstone) of San Diego California a stockbroker formerly employed by Independent Financial Group is the subject of a Financial Industry Regulatory Authority (FINRA) Investigation in which the regulator determined that disciplinary action should be taken by FINRA Department of Enforcement against the stockbroker founded on allegations of…
Richard Edward Bohack of Global Arena Capital Corp has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Bohack failed to comply with his obligation to pay compensatory damages to a customer who prevailed in a claim containing allegations that Bohack gave bad advice and…
Windsor Street Capital L.P. (formerly known as Meyers Associates L.P.) has been expelled from Financial Industry Regulatory Authority (FINRA) membership, and Arthur Tacopino and Edwin Rodriguez (Windsor Street Capital’s associates) have been barred from associating with any FINRA member in any capacity, all according to a Default Decision issued by FINRA’s Office of Hearing Officers…
Larry Steven Werbel of Chagrin Falls Ohio a stockbroker formerly registered with Concorde Investment Services LLC has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative or otherwise associating with securities broker dealers or investment advisories according to an Order Instituting Administrative Proceedings Pursuant To Investment Advisers Act…
Tamara Rae Steele of Pendleton Indiana a stockbroker formerly employed by Comprehensive Asset Management and Servicing (now known as APW Capital Inc.) and Chief Operating Officer of Steele Financial has been charged by Securities and Exchange Commission (SEC) in a Complaint alleging that Steele and Steele Financial made fraudulent investment recommendations to investors. Civil Action…
Wayne Fitzgerald Ford of Farmingdale New York a stockbroker formerly registered with Salomon Whitney Financial is referenced in a customer initiated investment related arbitration claim which was settled for $17,000.00 in damages based upon accusations that (1) transactions effected in the customer’s account violated Louisiana Securities Act (2) fiduciary duties to the customer had been…
Jon Brett Schmidhammer of Dublin Ohio a stockbroker formerly employed by Stifel Nicolaus Company Inc. has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative or otherwise associating with securities broker dealers or investment advisors according to an Order Instituting Administrative Proceedings Pursuant To Securities Exchange Act of…
Francis Joseph Gendlek of East Brunswick New Jersey a stockbroker formerly employed by IFS Securities and TFS Securities has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by allegations that Gendlek neglected to cooperate with the terms of a FINRA Arbitration Award. FINRA Arbitration No. 17-00637 (Apr….
James Bradley Schwartz (also known as Jim Schwartz) of Melville New York a stockbroker formerly employed by Aegis Capital Corp has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to an Order Accepting Offer of Settlement containing findings that (1) Schwartz executed trades in the customer’s account…
Gregory Spencer O’Brien of New York New York a stockstockbroker formerly employed by Aegis Capital Corp. is the subject of a customer initiated investment related arbitration claim in which the customer sought $100,000.00 in damages supported by accusations that between 2011 and 2018: (1) the customer’s account was handled in a negligent manner (2) the…
Francine Ann Lanaia (also known as Fran McPherson) a stockbroker formerly employed by Windsor Street Capital LP has been barred from associating with any Financial industry Regulatory Authority (FINRA) member in any capacity based upon accusations that Lanaia failed to provide FINRA with information that had been requested from her. Case No. 2017052475701 (Oct. 29,…
Victor M. Dandridge III of Richmond Virginia a stockbroker formerly employed by Thompson Davis Co. Inc. has been barred by Securities and Exchange Commission (SEC) from being an investment advisor or broker or otherwise associating with investment advisories or brokerage firms according to an Order Instituting Administrative Proceedings Pursuant to Securities Exchange Act of 1934…
Jonathan Michael Sheklow of New York New York a stockbroker formerly registered with Global Arena Capital Corp has been suspended on May 23, 2016 from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to pay a $151,373.17 award to a customer after a…
Dennis Daniel Herrera of New York New York a stockbroker formerly associated with Blackbook Capital LLC is referenced in a customer initiated investment related arbitration claim which was settled for $14,500.00 in damages based upon allegations that equity transactions effected in the customer’s account were not suitable for the customer. Financial Industry Regulatory Authority (FINRA)…
James Bradley Schwartz (also known as Jim Schwartz) of New York New York a stockbroker formerly registered with Aegis Capital Corp. has been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that (1) Schwartz excessively traded and churned customers’ accounts and (2) Schwartz engaged in deceptive and fraudulent activities…
Leon William Vaccarelli of Waterbury Connecticut a stockbroker formerly registered with The Investment Center has been indicted for wire fraud and mail fraud based on allegations that he engaged in a scheme which victimized elderly customers. United States v. Leon Vaccarelli No. 18-cr-g2-SRU (D. Conn May 2, 2018). On May 29, 2019, the Securities and…
Salman Rasheed of Skokie Illinois a broker formerly employed by J.P. Morgan Securities LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Rasheed took advantage of an elderly investor with dementia who provided Rasheed $390,045.00 in gifts while Rasheed was associated with the…
John William Spach of Aliso Viejo California a stockbroker formerly employed by Kestra Investment Services LLC and investment advisory representative formerly associated with NFP Retirement Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Spach failed to cooperate with a FINRA investigation into…
Raj Sharma of Boston Massachusetts a stockbroker currently registered with Merrill Lynch Pierce Fenner Smith Incorporated is the subject of a customer initiated investment related arbitration claim in which the customer requested $70,000.00 in damages founded on accusations that (1) misrepresentations and omissions had been made to the customer from January of 2012 to January…
Dominic Joseph Linsalata Jr. of Boca Raton Florida a stockbroker formerly registered with Dawson James Securities Inc. is referenced in a customer initiated investment related arbitration claim in which the customer sought $80,013.13 in damages supported by accusations that (1) misrepresentations had been made to the customer concerning equity investments and (2) excessive equity trades…
Lee Dana Weiss of San Juan Puerto Rico a stockbroker formerly employed by MP Global Inc. and owner of Family Endowment Partners LP (FEP) has been barred by Securities and Exchange Commission (SEC) from being a broker or investment advisor or otherwise associating with brokers or investment advisories according to an SEC Order Instituting Administrative…
John Anthony Waszolek of Scottsdale Arizona a stockbroker formerly employed by Raymond James Associates Inc. is referenced in an Arizona Corporation Commission Order revoking his securities registration in the State of Arizona based on findings that Waszolek engaged in unethical practices in the securities industry through steering an investor with dementia towards making Waszolek a…
Larry Michael Phillips of Woodland Hills California a stockbroker formerly employed by Purshe Kaplan Sterling Investments and former owner of TPG Advisors (The Phillips Group Advisors) has been barred by Securities and Exchange Commission (SEC) from associating with any broker or investment advisor as well as any brokerage firm and investment advisory according to a…
Robert Gerald Merlo of Midland Park New Jersey a stockbroker formerly employed by Allstate Financial Services LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on accusations that Merlo disregarded a FINRA inquiry possibly pertaining to him being charged with fraud. Case No. 2017053574002 (Jan. 15,…
Michael Patrick Murphy of New York New York the Chief Executive Officer of Columbus Advisory Group Ltd. is the subject of a customer initiated investment related arbitration claim where the customer requested $22,500,000.00 in damages supported by accusations that the customer had been placed in direct participation program or limited partnership interests that were not…
Floyd Earl Powell of Albertville Alabama a stockbroker formerly employed by MML Investors Services LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Powell engaged in private securities transactions while associated with the firm. Letter of Acceptance Waiver and Consent No….
John Belesis of New York New York a stockbroker formerly registered with Portfolio Advisors Alliance Inc. is referenced in a customer initiated investment related arbitration claim in which the customer requested unspecified damages supported by allegations that between July of 2013 and August of 2017: (1) the customer’s account was churned (2) transactions were negligently…
Erven Joseph Frericks Jr. of Chesterfield Missouri a stockbroker formerly employed by Royal Alliance Associates Inc. has been discharged by the firm on May 11, 2018 supported by allegations that Frericks urged a customer to designate him as the beneficiary of half of the assets held in the customer’s annuity account. Financial Industry Regulatory Authority…
Edward Beyn of New York New York a stockbroker formerly registered with Craig Scott Capital LLC is the subject of a Financial Industry Regulatory Authority (FINRA) National Adjudicatory Council Decision which affirms FINRA’s Hearing Panel’s decision to bar Beyn because (1) Beyn effected excessive trades in customer accounts (2) Beyn churned customers’ investment portfolios and…
Kenneth Joseph Kolquist of Duluth Minnesota a stockbroker formerly employed by Cetera Advisor Networks LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on allegations that Kolquist failed to provide FINRA with information that was requested of him. Case No. 2015047359901 (Aug. 1, 2016). According to…
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that stockbrokers John Dimitrious Tsoukalas and Vincent Wallace are referenced in customer initiated investment related disputes pertaining to allegations of their unsuitable sales practices while they were registered with Hennion Walsh – a Financial Industry Regulatory (“FINRA”) brokerage firm headquartered in Parsippany, New Jersey. More Customers Sue…
Peter Orlando of Warwick Rhode Island a stockbroker formerly registered with MetLife Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a FINRA Office of Hearing Officers Hearing Panel Decision containing findings that (1) Orlando made unsuitable investment recommendations to an elderly customer and…
Craig Scott Taddonio of New York New York a stockbroker formerly employed by Craig Scott Capital LLC is referenced in a Financial Industry Regulatory Authority (FINRA) National Adjudicatory Council Decision which affirms FINRA’s Hearing Panel’s barring of Taddonio in all capacities based upon (1) Taddonio failing to reasonably supervise the firm and (5) Taddonio failing…
Martin Kevin Walcoe of Syosset New York a stockbroker currently employed by David Lerner Associates Inc. is referenced in a customer initiated investment related written complaint on August 9, 2016 where the customer requested unspecified compensatory damages founded on accusations that unauthorized trades of equities and government-debt products had been executed in the customer’s account….
Aaron Robert Parthemer of Fort Lauderdale, Florida has been fined $160,000.00 and barred from being a broker or investment adviser or otherwise associating with any brokers or investment advisories according to an Order Making Findings and Imposing Sanctions Pursuant To Securities Exchange Act of 1934 Section 15(b), Investment Advisers Act of 1940 Section 203(f) and…
Christopher Vincent Paul of Mineola New York a stockbroker formerly registered with Joseph Stone Capital L.L.C. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on allegations that Paul failed to comply with FINRA’s request for information potentially relating to Paul’s employment separations after being subject of…
Kai Chong Cheng of New York New York a stockbroker formerly employed by Merrill Lynch Pierce Fenner Smith Inc. and investment adviser representative and president of Affinity Capital Management LLC has been fined $10,000.00 and suspended for five years from registering as an investment advisor according to a New Jersey Bureau of Securities Administrative Consent…
Donald Marshall Cox a stockbroker currently employed by Raymond James Associates Inc. is referenced in a customer initiated investment related civil action in which the customer sought $2,000,000.00 in damages based upon allegations that between April of 2011 and November of 2015: (1) the customer’s funds were converted (2) the customer’s signature had been forged…
Kevin Keith Carriere of Glastonbury Connecticut a stockbroker formerly employed by MSI Financial Services Inc. is the subject of a customer initiated investment related written complaint which settled for $148,488.90 on May 22, 2017 founded on accusations that Carriere made misrepresentations to the customer in regard to the terms and conditions of a variable annuity…
Spencer Edwards Inc. a brokerage firm headquartered in Centennial Colorado has been censured and fined $495,000.00 and suspended from conducting securities business for forty-five days by Financial Industry Regulatory Authority (FINRA) according to an Extended Hearing Panel Decision containing findings that (1) the firm made unsuitable investment recommendations to customers concerning private placement investments (2)…
Sandlapper Securities LLC a broker dealer headquartered in Greenville South Carolina and Trevor Gordon (its majority owner and Chief Executive Officer) and Jack Bixler (its Chief Executive Officer) have been sanctioned by Financial Industry Regulatory Authority (FINRA) according to a FINRA Office of Hearing Officers Extended Hearing Panel Decision containing findings that (1) Sandlapper Securities…
Sean Joseph Kelly of Marietta Georgia a stockbroker formerly registered with Center Street Securities Inc. and the Chief Executive Officer of Lion’s Share Financial has been charged by Securities and Exchange Commission (SEC) in a Complaint alleging that Kelly defrauded twelve investors who provided him money through Lion’s Share to invest in alternative investments. Securities…
Michael Montelli of Hauppauge New York a stockbroker currently registered with American Capital Partners LLC is referenced in a customer initiated investment related written complaint on April 11, 2017 in which the customer requested damages estimated to exceed $5,000.00 in damages founded on accusations that (1) margin was utilized without the customer’s permission (2) unauthorized…
Kenneth Leopold Williams of Staten Island New York a stockbroker formerly registered with WestPark Capital Inc. has been terminated by the firm on May 24, 2017 based upon accusations that Williams failed to conform to WestPark Capital’s policies. Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that this is not the first time that Williams…
Kirt Samuel of New York New York a stockbroker formerly employed by National Securities Corporation is the subject of a customer initiated investment related arbitration claim in which the customer requested $5,750,000.00 in damages supported by allegations that (1) unauthorized trades were executed in the customer’s account (2) the customer’s over-the-counter equities portfolio was churned…
Marc Anthony Last of Berwyn Pennsylvania a stockbroker formerly registered with NYLife Securities LLC has been charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that he converted a customer’s funds from the customer’s variable annuity. Department of Enforcement v. Marc Anthony Last Disciplinary Proceeding No. 2016052434001 (Sept. 17, 2018). According to the…
Andrew Jason Mandell of Oakland California a stockbroker formerly registered with Network 1 Financial Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to cooperate in a FINRA investigation into accusations of possible violations of federal securities law….
As one Court has recently observed, “herculean efforts” by securities broker-dealers “to avoid resolution of disputes through arbitration” is not new. The brokerage industry is responsible for the creation of mandatory arbitration. Arbitration agreements are contained in virtually every customer agreement with every broker-dealer carrying securities in America. The duty to submit to arbitration all…
Scottsdale Capital Advisors Corp a brokerage firm headquartered in Scottsdale Arizona as well as its director John Joseph Hurry and chief compliance officer Timothy Brian DiBlasi and president Darrel Michael Cruz have been subject of Financial Industry Regulatory Authority (FINRA) National Adjudicatory Council Decision affirming FINRA’s Extended Hearing Panel’s findings that (1) the firm effected…
More than forty-five public investors filed a $5.8 million dollar securities arbitration claim against Securities America in connection with a Ponzi scheme effected by one of its registered representatives, conducting business and registered under the name of Allen Lee Hengst. The securities arbitration panel, then back in 2001 known as the NASD, or National Association…
Clark Smith Gardner of Orem Utah a stockbroker formerly employed by Cetera Advisors LLC has been barred by Securities and Exchange Commission (SEC) from associating with any brokerage firm or investment advisory according to an Order Instituting Administrative Proceedings in which Gardner consented to findings that he committed securities fraud. In the Matter of Clark…
Marc Gregory Minor of East Peoria Illinois a stockbroker formerly registered with Woodbury Financial Services Inc. is the subject of a customer initiated investment related written complaint on December 23, 2016 in which the customer requested $62,000.00 in damages supported by accusations that (1) the customer incurred undue losses from an insurance company’s exercise of…
Kevin Stephen Fitzpatrick of Geneva Illinois a stockbroker formerly registered with Stifel Nicolaus Co. Inc. has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he mischaracterized customers’ trades and mismarked trades as unsolicited. Letter of Acceptance Waiver and Consent…
Thomas Tirrell Riquier of Danvers Massachusetts a stockbroker formerly registered with United Planners Financial Services of America is the subject of an Administrative Complaint brought by the Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth in which Riquier is alleged to have engaged in fraudulent business practices….
Malcolm Lynn Norris of South Carolina is a former Ameriprise Financial Services Inc. registered representative who is the subject of customer initiated investment related written complaint on November 7, 2016 where the customer sought $143,220.62 in damages supported by accusations that (1) an unsuitable business development company purchase had been effected in the customer’s account…
Michael Harvey Siva of Morristown New Jersey a stockbroker formerly registered with Morgan Stanley was terminated on August 18, 2017 based upon accusations that he committed securities fraud. Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Siva has been identified in four customer initiated investment related disputes containing allegations of Siva’s improper conduct since…
Michael Fisher of Melville New York is a stockbroker formerly registered with Wells Fargo Advisors LLC who is the subject of a customer initiated investment related arbitration claim where the customer requested $324,165.01 in damages based upon allegations that Fisher effected unit investment trust transactions in the customer’s account that were not suitable for the…
Woong Seong Hwang of New York New York is a stockbroker formerly registered with Merrill Lynch who has been fired on July 11, 2017 based upon allegations that Hwang failed to furnish information about a customer that was accurate during the period in which the customer’s account had been established with Merrill Lynch. Financial Industry…
Erin A. Daniels of Scottsdale Arizona is a stockbroker formerly registered with BMO Harris Financial Advisors, Inc. who was fired on March 1, 2018 founded on allegations that Daniels mishandled information from customers and conducted herself in a manner which was not consistent with industry rules or the firm’s policies and procedures. Financial Industry Regulatory…
Charles Henry Frieda, of Irvine, California, a stockbroker formerly registered with Wells Fargo Clearing Services, LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he made unsuitable investment recommendations to the firm’s customers. Letter of Acceptance, Waiver and Consent, No. 2015045713302 (Dec….
Zachary S. Berkey and Daniel T. Fischer, of Melville, New York, stockbrokers registered with Four Points Capital Partners LLC, were subject of a Complaint brought by the Securities and Exchange Commission containing accusations that Berkey and Fischer made unsuitable investment recommendations to customers, misrepresentations, and churned customers’ accounts. Securities and Exchange Commission v. Zachary S….
On December 7, 2017, the United States Securities and Exchange Commission and the Department of Justice, through the United States Attorney for the Eastern District of Pennsylvania filed a civil action and a criminal indictment against Paul Wescoe Smith fomerly associated with Bolton Global Capital. On May 24, 2017, the Guiliano Law Group filed a…
In 2002, in the wake Worldcom and Enron the United States Congress among other things amended the United States Bankruptcy Code to provide that Bankruptcy Code does not discharge an individual debtor from any debt incurred in connection with the violation of any of the Federal securities laws (as that term is defined in section…
Pranav V. Patel of Tamarac, Florida, has been barred from associating with an investment advisory or brokerage firm in any capacity, or otherwise working as a broker or investment advisor representative according to a Securities and Exchange Commission (SEC) Order containing findings that Patel committed securities fraud. In the Matter of Pranav V. Patel, Administrative…
James Larkin Powers, of New York, New York, a stockbroker formerly registered with du Pasquier & Co., Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a FINRA Extended Hearing Panel Decision containing findings that he participated in a fraudulent trading scheme, placed transactions in…
Robert Russel Tweed, of San Marino, California, a stockbroker formerly associated with CapWest Securities, Inc., and member of a California based advisory firm, Tweed Financial Services, Inc., has been named in a Complaint brought by Securities and Exchange Commission (SEC), which alleged that Tweed defrauded investors by misrepresenting the performance of an investment fund as…
By: Dana N. Pescosolido We’ve all heard the warnings, for many years now. The population is aging, the baby-boomers are starting to retire, and as they age, the opportunities for exploitation by unscrupulous brokers will increase exponentially. Some sources say that upwards of $7 trillion in retirement assets will be in play. States like Florida…
Lawrence Michael LaBine, of Scottsdale, Arizona, a stockbroker formerly registered with Newbridge Securities Corporation, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to an Office of Hearing Officers Order Accepting Offer of Settlement containing findings that LaBine fraudulently misrepresented information to investors and made unsuitable…
Last September we wrote an article entitled: “Securities Regulators Caution Suckers to Avoid Fake Lawyers.” As we stated, on September 19, 2016, FINRA issued an Investor Alert, entitled “It can be hard to recover from Recovery Scams.” According to the Investor Alert: You hear from someone who claims to be able to help you recover…
Heath Marell, Susan Marell and James Marell filed a claim in March 2016 against Mark Allan Plummer and Texas E & P Partners, Inc., alleging breach of contract, failure to supervise, negligence, intentional fraud and misrepresentation, among other claims. The claims related to Chestnut GEB Joint Ventures and Chestnut 2007 4×4 Joint Venture. The Washington…
Jeffrey Alan Smith, of Irvine, California, a stockbroker formerly registered with Accelerated Capital Group, has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he utilized altered and pre-signed customer documents to effect investment transactions in customer…
Federal prosecutors and the SEC recently filed separate but related complaints against Dawn J. Bennett, a 28-year industry veteran, alleging that she conducted a Ponzi-like scheme through her investment company, DJB Holdings, LLC. Bennett worked out of Washington, DC. According to the complaints filed in Maryland federal court, Bennett and her firm sold convertible notes…
The SEC filed an emergency action in Colorado federal court on August 23rd to freeze the assets of recently terminated LPL Financial broker Sonya D. Camarco, a/k/a Sonya D. Fatchett. The court granted the request August 24th. The SEC alleges in its complaint that from 2004 to 2017, Camaro stole approximately $2.8 million from multiple…
Adam K. Veron, a broker formerly employed at Questar Capital Corporation in Lake Charles, LA, has agreed to be barred from the securities industry. In mid 2015, Veron formed Contract Funding & Corporate Management LLC (“CFCM”), naming himself as president. From July 2015 until December 2016 he then sold approximately $1.8 million of shares of…
William H. Merriam IV recently signed a letter of acceptance, waiver and consent (“AWC”) with FINRA agreeing to be barred from the securities industry. Merriam joined Merrill Lynch in June 2014 to work in the Jacksonville FL branch office of Merrill Lynch. He worked with his father. In January 2017 Merriam voluntarily resigned from Merrill…
An Omaha Nebraska FINRA panel has awarded $440,000 if favor of the beneficiaries of an estate. Kari Larson opened two individual retirement accounts with Ameriprise in Nebraska in 2013. She later opened a third non-retirement account with the firm. The claimants Tab and Jan Larson were named as beneficiaries for the IRAs. After Kari Larson…
Elliot Harris, of Boca Raton, Florida, a stockbroker formerly registered with Ladenburg Thalmann & Co. Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he obstructed a FINRA investigation into allegations of his unauthorized and unsuitable trading in customer accounts. Letter…
A FINRA hearing panel has barred broker Edward Byen and his two supervisors, Craig Scott Taddonio and Brent Morgan Porges, from the securities industry. They all previously worked at Craig Scott Capital of Uniondale, NY. FINRA filed an enforcement complaint in December 2015 alleging that the “firm and its owners had fostered a culture of…
Anthony Vincent Ferrone entered into an acceptance, waiver and consent agreement (“AWC”) with FINRA and has been barred from the securities industry. Ferrone was the subject of a FINRA investigation concerning the unsuitable sales of unit investment trusts to customers. Ferrone was actually in the middle of an on the record interview (“OTR”) being conducted…
In an arbitration award dated June 27, 2017, a three-member panel awarded Oregon investors Scott and Jan Tullis $192,103 in damages and interest against Ameriprise Financial Services, Inc., and its broker, Andrew Joseph Hall. Hall worked in Portland, Oregon. The panel gave a one-paragraph explanation for the award. The panel determined that respondents engaged in…
David Leonard Sheppard, a former broker who worked in New York and Massachusetts, was barred from the securities industry in April 2017. Sheppard was in the middle of a FINRA inquiry. FINRA was investigating Sheppard for potential excessive trading and churning in multiple customer accounts. In conjunction with its investigation, FINRA requested that Sheppard appear…
On July 24,2017 a FINRA arbitration panel in Wyoming awarded John and Kathleen Keck $559,612 based on their claim of negligence against RBC Capital Markets LLC and three RBC brokers, Jacqueline Sarette Georgio, Paul Samuel Howard and Brian Kristian Pedersen. The award was joint and several against the four respondents. They worked out of an…
Kim See Isaacson, of Salt Lake City, Utah, a stockbroker formerly registered with Morgan Stanley, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon a Decision & Order of Offer of Settlement containing findings that she willfully defrauded a customer, failed to abide by the…
Joel Nathan Burstein Jr., of Coral Gables, Florida, a stockbroker registered with Raymond James & Associates, Inc., was terminated from employment on January 27, 2017, based upon the firm’s discovery that Burstein was identified in a customer initiated investment related dispute containing allegations against him of fraud. Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals…
By: Dana N. Pescosolido Overall win rates for the first six months of 2017 are consistent with the past, but All-Public Panels gave awards to Claimants more often than in the past, and almost twice as often as did Majority-Public Panels. Recovery Rates are running higher this year, with compensatory awards averaging 63% of the…
RBC Wealth Management has settled a customer complaint filed by a prominent Indianapolis, IN family for $3.5 million. The settlement occurred in April of this year. According to news reports and FINRA filings, the family of the late Robert Skinner, co-founder of Skinner and Broadbent, Inc., a prominent shopping center developer in the Midwest, settled…
Aaron Robert Parthemer was barred from the securities industry by FINRA in 2015. The bar resulted from Parthemer’s unapproved outside business activities, inappropriate and unapproved loans to customers and unapproved private securities transactions. Parthemer worked in Ft. Lauderdale, FL, at Morgan Stanley from June 2009 to October 2011. He then worked at Wells Fargo, also…
These are only allegations, these are only allegatons, there are only allegations. FINRA filed a complaint in February, 2017, alleging that former Edward Jones broker Austin Morton of Sallisaw, Oklahoma, converted $36,000 from an elderly former client. This tale of woe begins in November 2016, when the daughter of the client, with a power of…
On July 11, 2017, the Pennsylvania Department of Banking and Securities announced that it has fined Newbridge Securities Corporation $499,000 for failure to supervise. The order does not specify the products or the number of affected Pennsylvania investors. It also does not identify the broker who made the problematic sales. The BrokerCheck report for Newbridge…
A FINRA arbitration panel from New York issued an award dated July 10, 2017, in favor of customer Timothy McLaughlin against Northeast Securities, Inc., and three of its employees, Steven Joseph Perrone, Diane Hawkins and Jonathan Michael Zucker. Northeast Securities and the three employees were all named as respondents in the claim. FINRA Arbitration No….
On July 13, 2017, a FINRA arbitration panel issued an award finding that Wedbush Securities and its former broker, Mark F. Augusta, “engaged in improper conduct” regarding two elderly customers, Agatha and John Dancy, 16-00847. The hearing took place in Los Angeles, CA. Augusta worked out of Wedbush’s Solana Beach, CA office. The arbitration claim,…
On June 2, 2017, Nevada Governor Brian Sandoval signed Senate Bill 383, which amends the Nevada Securities Act to include broker-dealers, investment advisors and their individual representatives as fiduciaries. The bill went into effect on July 2, 2017. Under Nevada securities law, “financial planners” are defined and considered to be fiduciaries in relation to their…
Ankit Sahu, of San Francisco, California, a stockbroker formerly registered with UBS Financial Services Inc., has been named in a customer initiated investment related arbitration claim on April 28, 2017, in which the customer requested $500,000.00 in damages based upon allegations that he effected unsuitable transactions in the customer’s investment account, and misrepresented UBS AG…
Former Sterne Agee Baton Rouge, LA broker James K. Cox recently submitted a letter of Acceptance, Waiver and Consent (“AWC”) to settle a regulatory investigation with FINRA. In the fall of 2014, Cox, then employed at Sterne Agee, convinced a client to switch from one variable annuity (“VA”) to another. He also had the client…
In early June, FINRA filed a regulatory complaint against former Morgan Stanley broker Kim Dee Issacson. Issacson had worked in Morgan Stanley’s Salt Lake City branch from December 2008 until February 2014. The regulatory complaint is apparently related to a customer arbitration claim filed against Issacson by Keith Melton and seven related entities in 2014…
The Financial Industry Regulatory Authority or FINRA, and its President and Chief Executive Officer, Robert Cook, recently announced that FINRA is implementing various measures to rein in high-risk brokers and brokerage firms (also referred to as “rogue” brokers and firms). In fact, in recent months, there have been an interesting trend in particularly the New…
Securities regulations, and their enforcement, impede capital formation. Must be time for a cocktail party for crowd funding in Harisburg. The Pennsylvania Department of Banking and Securities Bureau of Securities recently completed an investigation and obtained a consent order against of Premier Innovations Group, Inc. , Clique Vodka Ltd. and Noah Cohen. Premier has offices…
On May 24, 2017 David Lerner Associates (“DLA”) signed a consent order with the New Jersey Bureau of Securities involving the company’s sales of non-traded REITs. DLA is a broker-dealer with offices in New York, New Jersey and Boca Raton, Florida. Since 1992, DLA has been the underwriter and sole distributor of 10 Apple non-traded REITs….
William Christian Gennity, of New York, New York, a stockbroker formerly registered with Alexander Capital, L.P., has been identified in a Securities and Exchange Commission (SEC) Complaint on February 2, 2017, in which the SEC has pursued sanctions against Gennity based upon allegations that he committed fraudulent stock transactions; conduct violative of Securities Act of…
Unfortunately, for what is a substantial percentage of claimants who win arbitration awards against their brokers and/or their brokerage firm, FINRA has declined to address an all to common situation that investors face – that of unpaid arbitration awards. Last week, FINRA’s governing board failed to significantly address the problem of unpaid arbitration awards that…
Kathleen Jeanette Tarr, of Lafayette, California, a stockbroker formerly registered with Royal Alliance Associates, Inc., has been named in a customer initiated investment related arbitration claim, which settled on February 27, 2017, for $550,000.00 in damages based upon allegations that Tarr made unsuitable investment recommendations to the customer regarding real estate securities. Financial Industry Regulatory…
Demitrios Hallas, a former registered representative of Forefront Capital Markets and and PHX Financial was charged today by the United States Securities & Exchange Commission with the violation of the antifraud provisions of the federal securities laws in connection with the recommendation and sale of unsuitable securities. United States Securities & Exchange Commission v. Hallas,…
John William Rafal, of Essex Connecticut, former president and chief executive officer of Essex Financial Services, Inc., has been barred by the Securities and Exchange Commission (SEC) from acting as an investment adviser, broker or associating with entities that sell securities or advise the investor public according to an Order Instituting Administrative Proceedings Pursuant to…
Donald Lee Wells, of Seattle, Washington, a stockbroker currently registered with Titan Securities of Addison Texas (CRD No. 131392), has been fined $2,500.00 and subject of cease-and-desist sanctions pursuant to a Consent Order issued by the State of Washington Department of Financial Institutions Securities Division based upon allegations that Wells, inter alia, violated the Securities…
Howard Deen Richards, of Plymouth, Minnesota, a stockbroker formerly registered with NFP Advisor Services, has been barred by the Securities and Exchange Commission (SEC) from acting as an investment adviser, broker or associating with entities which sell securities or offer advice to the investor public pursuant to an Order Instituting Administrative Proceedings Pursuant to Sections…
William Scholander, of New York, New York, a stockbroker formerly associated with Radnor Research & Trading Company LLC, has been barred by the Securities and Exchange Commission (SEC) from acting as an investment adviser, broker or associating with entities which sell securities or offer advice to the investor public based upon an Order Instituting Administrative…
Michael Alan Siegel, of Edison, New Jersey, a stockbroker formerly registered with National Securities Corporation, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon his failure to provide a response to FINRA staff’s information request. Letter No. 2016050346301 (Oct. 28, 2016). FINRA Public Disclosure reveals…
The Investment Center, headquartered in Bedminster, New Jersey, was reprimanded and fined $50,000.00 by Texas State Securities Board pursuant to a Consent Order containing findings that the firm failed to supervise a registered representative’s activities, which consisted of making unsuitable investment recommendations to customers. In the Matter of The Dealer Registration of The Investment Center,…
Michael Daniel Shaw, of Baton Rouge, Louisiana, a stockbroker formerly registered with VSR Financial Services, Inc., has been named in a customer initiated investment related arbitration claim, in which customers were collectively awarded $307,000.00 in damages on February 4, 2016, based upon allegations that Shaw breached his fiduciary and contractual duties to the customers, negligently…
Lance Jeffrey Ziesemer, of Wayzata, Minnesota, a stockbroker formerly registered with Feltl & Company, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Ziesemer failed to provide a response to FINRA personnel’s information request. Letter No. 2016049847001 (Sept. 26, 2016). Ziesemer was previously…
Robert Philip DePalo, of Greenwich, Connecticut, a former chief executive officer of McBarron Capital, LLC, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that DePalo failed to provide a response to FINRA pursuant to an information request. Letter No. 2015044211102 (Aug. 4, 2016)….
John Joseph Stapleton, of Uniondale, New York, a stockbroker formerly registered with Craig Scott Capital, has been named in a customer initiated investment related arbitration claim on January 3, 2017, in which the customer requested $48,223.26 in damages based upon allegations that Stapleton effected unsuitable stock transactions in the customer’s account. Craig Scott Capital however…
Wood (Arthur W.) Company, Inc., headquartered in Boston, Massachusetts, has been fined $10,000.00 and statutory disqualified by Financial Industry Regulatory Authority (FINRA) pursuant to a National Adjudicatory Council Decision containing findings that the firm, inter alia, charged customers commissions which were excessive, and failed to supervise commissions charged by registered representatives. In the Matter of…
Feltl & Company, a broker-dealer headquartered in Minneapolis, Minnesota, has been censured and fined $150,000.00 by Financial Industry Regulatory Authority (FINRA) based upon consenting to findings that the firm, inter alia, failed to supervise a registered representative’s trading activities. Letter of Acceptance, Waiver and Consent, No. 2010024882202 (Feb. 28, 2017). According to the AWC, between October…
Joseph Louis Derrico, of Staten Island, New York, a stockbroker currently registered with Woodstock Financial Group, Inc., has been named in a regulatory investigation by the State of Montana Securities Division on February 1, 2017, based upon a customer’s complaint referencing Derrico’s misconduct in connection with over-the-counter equity transactions effected in the customer’s account. Financial…
Jason Edward Seurer, of Milbank, South Dakota, a stockbroker formerly registered with Edward Jones, has been penalized $7,500.00 and suspended for eighteen months by The State of South Dakota Division of Securities based upon Seurer consenting to findings that he sold away from his firm via his promissory note investment transactions. (Jan. 19, 2017). Previously,…
Marcus Joseph Debaise, of Glastonbury, Connecticut, a stockbroker formerly registered with Wells Fargo Advisors, LLC, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to provide a response to FINRA pursuant to an information request. Letter No. 2015046925901 (May…
Craig David Dima, of Ronkonkoma, New York, a stockbroker formerly registered with K.C. Ward Financial, has been fined and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon an Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that Dima effected unauthorized trades in a customer’s…
Patric Ken Baccam, of Hemet, California, has been charged by the United States Securities and Exchange Commission (SEC) in a Complaint alleging that Hemet, inter alia, concocted a scheme to defraud investors in the sale of unsecured promissory notes. Securities and Exchange Commission v. Baccam, Docket No. 17-cv-172 (C.D. Cal. 2017). According to the Complaint,…
Michael Nicholas Guilfoyle, of New York, New York, a stockbroker formerly registered with Legend Securities, Inc., has been named in a customer initiated investment related arbitration claim, which settled on October 2, 2015, for $99,999.00 in damages based upon allegations that Guilfoyle excessively traded or churned the customer’s investment account, made unsuitable over-the-counter equity recommendations,…
Kelly Clayton Althar, of San Francisco, California, a stockbroker formerly registered with Financial West Group, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon an Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that Althar effected trades in a customer’s account on an…
Eric Joseph Miller, of Scottsdale, Arizona, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon an Office of Hearing Officers Default Decision containing findings that Miller failed to attend a disciplinary hearing and testify concerning his firm’s activities. Department of Enforcement v. Eric Joseph Miller, No….
Stephen Eugene Winkelman Junior, of Pasadena, California, a stockbroker formerly registered with Centaurus Financial, Inc., was named in an Order issued by The State of Kansas Securities Commissioner which revoked Winkelman’s securities registration and instituted cease and desist sanctions against him based upon allegations that Winkelman falsified a customer’s consolidated financial statement and inflated values…
Adam S. Fritzsche, of Atlanta, Georgia, a stockbroker formerly registered with LPL Financial LLC, has been fined and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to customers and made misrepresentations on firm documentation concerning…
Alejandro Falla, of Miami, Florida, a former president and chief executive officer of Ultralat Capital Markets, Inc., has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he omitted information from customers concerning non-market foreign exchange rates pertaining to transactions involving bond…
Kennister Ulesley Daley, of Boca Raton, Florida, a stockbroker formerly registered with Dawson James Securities, Inc., has been named in a customer initiated investment related written complaint on January 5, 2017, in which the customer requested $65,000.00 in damages based upon allegations that Daley, from April of 2015 to February of 2016, traded options excessively…
Kevin Mark Reed, of Fort Wayne, Indiana, a stockbroker formerly registered with Fifth Third Securities, Inc., has been terminated from employment on July 8, 2016, based upon allegations that he altered the documentation of firm customers. Financial Industry Regulatory Authority (FINRA)Public Disclosure reveals that Reed has been identified in two customer initiated investment related disputes…
Samuel T. Januszeqski-Ytrt, of Mineola, New York, a stockbroker formerly registered with Blackbook Capital LLC, has been named in a customer initiated investment related arbitration claim on November 21, 2016, in which the customer requested $250,000.00 in damages based upon allegations that Januszeqski-Ytrt breached his fiduciary duties, made misrepresentations concerning investments, and defrauded the customer…
Dean Sadrudin Mustaphalli, of Forest Hills, New York, a stockbroker formerly registered with Sterne Agee Financial Services, Inc., has been named in a customer initiated investment related arbitration claim, which settled on December 1, 2015, for $400,000.00 in damages based upon allegations that Mustaphalli made misrepresentations to the customer concerning direct investment products, and effected…
Tyre Fred Newsome, of New York, New York, a stockbroker with Garden State Securities, Inc., was terminated from employment on April 4, 2016, based upon allegations that he made unsuitable investment recommendations to the firm’s customers concerning investments. Financial Industry Regulatory Authority (FINRA) Public Disclosure additionally reveals that on April 18, 2011, a customer filed…
Lawson Financial Corporation, a brokerage firm headquartered in Phoenix, Arizona, as well as Robert Lawson (president, chief executive officer, and chief compliance officer), and Pamela Lawson (owner and chief operating officer) were sanctioned by Financial Industry Regulatory Authority (FINRA) Office of Hearing Officers according to an Order Accepting Offer of Settlement containing findings that the…
Michael Lee Child, of Draper, Utah, a stockbroker currently registered with H. Beck, Inc., has been named in a customer initiated investment related written complaint, which settled on July 6, 2016, for $35,000.00 in damages based upon allegations that Child effected transactions in the customer’s account which were not suitable, and was liable for the…
Hyun Sik Cho, of Dewitt, New York, a stockbroker formerly registered with Pruco Securities, L.L.C., has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he obstructed a FINRA investigation into allegations that he partook in unauthorized loan transactions with customers. Letter…
Ricardo Francois, of New York, New York, a stockbroker formerly registered with Caldwell International Securities, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to respond to a FINRA information request. Letter No. 2015043464602 (October 30, 2015). Prior to…
Mark Zeltser, of Brooklyn, New York, a stockbroker formerly registered with Meyers Associates, L.P., has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to respond to a FINRA information request. Letter No. 2014039091902 (Nov. 9, 2015). Prior to his…
In July 2014, we wrote about the dismantling of the Pennsylvania Securities Commissioner, which was seen as an impediement to “capital formation” in the Keystone State. We called it: Securities Fraudsters: You have a friend in Pennsylvania. So here we go again. By way of background, each year in Pennsylvania, investors conservatively lose $3 billion as…
Barry F. Connell, formerly of the Ridgewood office of Morgan Stanley, Inc., formerly known as Morgan Stanley Smith Barney, Inc., was charged by the United States Securities & Exchange Commission for the Connell, for the violation of Sections 206(1) and 206(2) of the Advisers Act, in that while acting as an investment adviser, by use…
Richard Gomez of New York, New York, a stockbroker formerly registered with Avenir Financial Group, has been suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Gomez, inter alia, effected unauthorized and excessive trades in the customers’ accounts. Letter of Acceptance, Waiver…
Alfred Talens Jr., of Indianapolis, Indiana, a stockbroker formerly registered with LPL Financial LLC, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Talens failed to provide FINRA personnel with a response to a request for Talens’ information. Case No. 2015044377301 (Oct. 13,…
By: Dana N. Pescosolido Once again, the author analyzes FINRA customer arbitration awards in his unique way, and draws comparisons between 2015 and 2016. Bottom line, customers won “something” a little less often in 2016, but won a little more money when they did. Read on for a detailed analysis. FINRA’s published statistics are accurate…
Zak William Shapiro, of Los Angeles, California, a stockbroker formerly registered with Oppenheimer & Co. Inc., has been named in a customer initiated investment related written complaint on June 22, 2016, in which the customer requested $32,196.55 in damages based upon allegations that between April of 2015 to April of 2016, Shapiro effected trades in…
Donald J. Fowler, of Massapequa, New York, and Gregory T. Dean, of Seaford, New York, both of whom are stockbrokers formerly registered with J.D. Nicholas & Associates, Inc., have been charged by the Securities and Exchange Commission (SEC) in a Complaint alleging that Fowler and Dean excessively traded and fraudulently churned customer accounts, and effected…
Steven Joel Shmulewitz, of Garden City, New York, a stockbroker with Craft Capital Management LLC, has been named in a customer initiated investment related complaint, which settled for December 21, 2016 for $30,000.00 in damages. The customer’s complaint was based upon allegations that Shmulewitz failed to execute the customer’s October 2016 stop loss orders pertaining…
Jason Vincent Mediate, of Staten Island, New York, a stockbroker formerly registered with Alexander Capital, L.P., has been named in a customer initiated investment related arbitration claim, which settled on November 17, 2015 for $112,500.00 in damages based upon allegations that Mediate effected transactions in the customer’s investment account without proper authorization. FINRA Public Disclosure…
Kyle Patrick Harrington, of San Diego, California, a stockbroker formerly registered with National Securities Corporation, has become the subject of a Financial Industry Regulatory Authority (FINRA) investigation, which focuses on allegations that Harrington possibly engaged in private securities transactions, converted customer funds, and failed to cooperate with FINRA regarding allegations of his misconduct. FINRA Matter…
Kim Dee Isaacson, of Midvale, Utah, a stockbroker currently registered with Ameriprise Financial Services, Inc., has been named in a Financial Industry Regulatory Authority (FINRA) investigation on April 8, 2016, which focuses on allegations that Isaacson made misrepresentations to a customer concerning the customer’s investment performance and account details. FINRA Public Disclosure reveals that Isaacson…
Kirk Lynn Ferguson, of Salt Lake City, Utah, president and chief compliance officer of ACAP Financial, and Gary Hume, of Salt Lake City, Utah, compliance officer of ACAP Financial, have been sanctioned by Financial Industry Regulatory Authority (FINRA) according to an Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that Ferguson and…
Guy Bernard Deemer, of Sewickley, Pennsylvania, a stockbroker formerly registered with Oppenheimer & Co. Inc., has been terminated by his firm on September 1, 2015, based upon allegations that Deemer did not abide by Oppenheimer’s policies which pertained to the way customers would be charged for services. FINRA Public Disclosure reveals that Deemer has been…
Paul Ricky Mata, of Rancho Cucamonga, California, was barred by the Securities and Exchange Commission (SEC) from working as an investment advisor or broker, or associating with brokerage firms selling customers’ securities or advising customers, according to an SEC Order enjoining Mata’s future acts of fraud in violation of Securities Exchange Act of 1934 Section…
Rodney Bahy Ibrahim, of New York, New York, a stockbroker formerly registered with Maxim Group, LLC, was terminated from the company on June 23, 2015, based upon allegations that he made misrepresentations to a customer following a wire transfer request. FINRA Public Disclosure reveals that on December 9, 2009, Ibrahim was named in a customer…
Walter Joseph Marino, of Hauppauge, New York, a stockbroker formerly registered with Legend Equities Corporation, has been named in four customer initiated investment related arbitration actions between March 14, 2016, and July 18, 2016, in which the customers have collectively requested $433,101.00 in damages based upon allegations that Marino excessively charged the customers with commissions…
Frank J. Bodi, of Atlanta, Georgia, a stockbroker formerly registered with Coastal Equities, Inc., has been 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 effected trades in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2014041310601 (Dec….
Texas E&P Partners, a Texas based broker-dealer formerly known as Chestnut Exploration Partners, Inc., has been expelled from Financial Industry Regulatory Authority (FINRA) membership, and the firm’s president, Mark A. Plummer, has been barred from associating with any FINRA member in any capacity according to a FINRA Office of Hearing Officers Extended Hearing Panel Decision…
Suzanne Hagmeyer, of Naperville, Illinois, a former stockbroker with World Equity Group, has been 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 she made misstatements to customers concerning variable annuity transactions. Letter of Acceptance, Waiver and Consent, No. 2013036907001 (Dec….
Stockbroker Fraud Lawyers | Scott F. Goldman, of Arlington Heights, Illinois, a stockbroker formerly associated with LPL Financial LLC, was fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity based upon consenting to findings that he made unsuitable investment recommendations to customers. Letter of Acceptance, Waiver…
Francesco Anthony Scarso, of New York, New York, a stockbroker formerly registered with PHX Financial Services, Inc., has been subject to a customer initiated investment related arbitration claim from November 23, 2015, which settled for $12,500.00 in damages based upon allegations that Scarso had effected an options transaction in the customer’s investment account which had…
Paul J. McCabe, Jr., of New York, New York, a stockbroker registered with Olympus Securities, LLC, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that McCabe failed to cooperate in a FINRA cycle investigation of Olympus Securities. Letter of Acceptance, Waiver…
Ronald A. Frumkes, of New York, New York, a stockbroker currently registered with Wunderlich Securities, Inc., has been subject to a customer initiated investment related arbitration claim on October 30, 2014, in which the customer has requested $600,000.00 in damages based upon allegations that from May 29, 2014 and October 15, 2014, Frumkes provided unsound…
Cynthia Bolker, of San Diego, California, a stockbroker formerly registered with 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 Bolker engaged in unauthorized borrowing arrangements with customers, and falsified statements to her firm and FINRA concerning such. Letter…
Keith A. Bradley, of Houston, Texas, a stockbroker formerly registered with VSR Financial Services, Inc., has been subject to a customer initiated investment related arbitration claim on July 12, 2016, in which the customer requested $100,000.00 in damages based upon allegations that Bradley negligently handled the customer’s investment account, and effected unsuitable investment transactions. Bradley’s…
Merrill Lynch, Pierce, Fenner & Smith, headquartered in New York, York, New York, was censured and fined $6,250,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm failed to supervise loan management accounts, and failed to supervise suitability transactions pertaining to Puerto Rico securities. Letter of Acceptance, Waiver and Consent, No….
VFG Securities, Inc., as well as Jason B. Vanclef, of Culver City, California, a stockbroker and chief executive officer currently registered with VFG Securities, Inc., were censured by Financial Industry Regulatory Authority (FINRA) per an Office of Hearing Officers’ Order Accepting Offer of Settlement containing findings that Vanclef made investment recommendations to customers based upon…
Dwarka Persaud, of Little Silver, New Jersey, a stockbroker formerly registered with Buckman, Buckman & Reid, Inc., is subject to a customer initiated investment related arbitration claim from October 10, 2016, in which the customer requested $40,000.00 in damages based upon allegations that Persaud effected an investment strategy that was unsuitable, and charged the customer…
Harry Bennett, of New Boston, Michigan, a stockbroker formerly associated with Transamerica, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that Bennett obstructed a FINRA investigation into allegations that Bennett made unsuitable investment recommendations to customers. Letter of Acceptance, Waiver and Consent, No. 2016049208901…
Michael J. Smeriglio III, of Greenwich, Connecticut, a stockbroker formerly registered with MetLife Securities Inc., has been subject to a customer initiated investment related arbitration claim on June 26, 2015, which settled for $2,500,000.00 in damages based upon allegations that Smeriglio breached his fiduciary duty to the customer, stole the customer’s funds, and committed fraud….
Richard Gomez, of New York, New York, a stockbroker formerly associated with Avenir Financial Group, has been subject to a customer initiated investment related arbitration claim on July 11, 2016, in which the customer requested $100,000.00 in damages based upon allegations that Gomez breached his fiduciary and contractual duties, and sold fraudulent investments to the…
Jason B. Vanclef, of Culver City, California, a stockbroker currently registered with VFG Securities, Inc., was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Vanclef made investment recommendations to customers based upon false and misleading statements. Department of Enforcement v. Jason Bryce Vanclef, No. 2013038283001 (Feb. 9, 2016)….
Stanley C. Niekras, of Liverpoll, New York, a stockbroker formerly associated with MML Investors Services, LLC, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Niekras made misrepresentations to elderly customers pertaining to investments. Department of Enforcement v. Niekras, No. 2013037401001 (Nov. 7, 2016). According to the Complaint,…
Newport Coast Securities, a broker-dealer headquartered in New York, New York, has been fined $1,000,000.00 and expelled from Financial Industry Regulatory Authority (FINRA) membership per an Extended Hearing Panel Decision in which Newport Coast Securities was found to have effected trades in customer accounts on a quantitatively unsuitable basis, churned customer accounts, made qualitatively unsuitable…
A customer initiated an investment related arbitration claim involving the conduct of Pranav Patel, of Boca Raton, Florida, a stockbroker formerly associated with Dawson James Securities, Inc. Customers collectively requested $62,855.00 in damages based upon allegations that Patel sold securities in ForceField Energy Inc. to them outside the auspices of his firm. The customers alleged that…
Maria Fan, of New York, New York, a stockbroker formerly registered with Aegis Capital Corp., 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 she made unwarranted and misleading statements concerning investments to a customer. Letter of Acceptance, Waiver and…
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…
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…
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…
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…
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…
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…
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…
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…
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,…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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,…
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…
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…
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…
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…
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…
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,…
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…
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….
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…
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….
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…
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….
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…
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….
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)….
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…
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….
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…
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…
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….
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)….
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,…
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…
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….
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…
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,…
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 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…
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…
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…
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….
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…
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…
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….
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….
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…
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…
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…
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,…
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…
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,…
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…
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….
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…
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….
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…
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…
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….
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…
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…
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…
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,…
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…
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…
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…
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…
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…
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…
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…
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,…
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…
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,…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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….
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…
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…
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,…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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,…
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…
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…
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,…
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…
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,…
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…
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…
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 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…
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 &…
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,…
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…
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…
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…
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…
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:…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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,…
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,…
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…
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…
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…
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…
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…
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…
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…
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 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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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:…
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…
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…
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 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…
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…
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…
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…
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…
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,”…
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…
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….
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…
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…
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…
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’…
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…
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 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,…
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…
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…
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…
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…
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,…
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 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….
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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,…
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…
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 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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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….
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…
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…
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…
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…
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…
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…
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)….
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…
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…
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…
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…
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…
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…
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,…
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…
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…
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,…
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 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…
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,…
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,…
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…
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”)…
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 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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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 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…
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 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…
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…
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…
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…
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…
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…
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,…
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,…
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…
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…
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…
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…
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…
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 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…
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…
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….
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…
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…
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…
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…
PHILADELPHIA – PA Nicholas J. Guiliano of the Guiliano Law Group, P.C., in Philadelphia, Pennsylvania announced today he is actively investigating and pursuing fraud claims against certain securities broker-dealers resulting from the risky or unsuitable recommendation of the securities of certain financial institutions. Tens of Billions Lost in Securities Investment Trusts, Labor Unions, Pension Funds,…
The Securities and Exchange Commission today charged a former broker in South Florida, Gary J. Gross, who allegedly defrauded senior citizens and other customers through a variety of abusive sales practices, garnering him more than $700,000 in commissions and fees while causing more than $2.7 million in investor losses. SEC Chairman Christopher Cox announced the…
Despite intense pressure from regulators to tighten recruiting standards for brokers with marks on their records, these bad apples are still being hired by new firms, recent cases illustrate. The problem is compounded by an industry practice that condones silence from broker-dealers when a registered representative leaves under a cloud, attorneys and regulators said. It’s…
General Description of Auction Rate Securities Auction rate securities were first offered for sale in U.S. financial markets in the early 1980s. As of the end of 2005, there were approximately $263 billion of auction rate securities outstanding. Many different types of issuers have issued auction rate securities for example, closed-end funds, corporations, municipal authorities…
NYSE HEARING BOARD DECISION 07-143 September 7, 2007 Citigroup Global Markets Inc. Violated NYSE Rule 401(a) by failing to ensure delivery of prospectuses in connection with sales of registered securities in violation of Section 5(b)(2) of Securities Act of 1933 and to deliver trade confirmations to certain customers; violated NYSE Rule 1100(b) by failing to…