Securities Arbitration Lawyers Blog

Published on: September 13, 2018

FINRA Bars Broker Taek Chong After Allegations of $2M Commission Overpayment

Taek Man Chong (CRD #1551743) is a previously registered broker and investment advisor who was last registered with Raymond James Financial Services, Inc. (CRD #6694) of Mercer Island, WA. His previous employers include Deutsche Bank Securities Inc. (CRD #2525) and SG Cowen Securities Corporation (CRD #7616) of New York, NY, and A. G. Edwards & Sons, Inc. (CRD #4) of St. Louis, MO. No current employment information is available. He has been in the industry since 1986.

Broker-William-Hutchinson-Barred-by-FINRA-300x200 Two customer disputes were filed in May of 2018, both alleging overpayment of commissions, totaling $2,010,939.01. These disputes are currently listed as “pending.” According to FINRA documentation, Chong was under review for these disputes, which were related to large, institutional trades, and his registration with Raymond James was voluntarily terminated on May 22, 2018. He is not currently associated with any FINRA-member firm.

FINRA began an investigation, and sent a letter to Chong on May 25, 2018, requesting information related to the disputes. On June 19, 2018, Chong responded through counsel that he would not provide the requested information to FINRA at any time. FINRA issued an Acceptance, Waiver & Consent (AWC) letter, in which Chong neither admitted nor denied findings, and signed on June 22, 2018. FINRA subsequently barred Chong indefinitely, and in all capacities, effective June 28, 2018.

Published on: September 13, 2018

FINRA Bars Broker William Downing, Allegations of $1M Excess Trading

by Silver Law Group

William Downing (CRD #1529382) is a former registered broker and investment advisor who was last registered with Coastal Equities, Inc. (CRD #23769) of Wimberly, TX. He was previously employed with J.W. Cole Financial, Inc. (CRD #124583), also of Wimberly, as well as Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) and Wells Fargo Advisors, LLC (CRD #19616), both of Austin, TX. No current employment information is available. He began in the industry in 1986.

FINRA barred Downing after he failed to respond to a request for information. He was previously suspended, but did not respond to request termination of his suspension within the three-month time frame. He was indefinitely barred on 08/20/2018. No additional information is available.

Boca-Raton-Oppenheimer-Employees-Settle-SEC-Investigation-300x208 Downing is also the subject of a customer dispute, filed on 07/05/2018. In it, the client alleges that Downing “between 2013 and 2018. . .excessively traded client’s account.” Requested damages are $1M, but no additional details are available. It is not known if this case is related to the FINRA action that let to Downing ultimately being barred indefinitely.

Published on: September 13, 2018

Dennis Farrah Accused of Securities Fraud

by Silver Law Group

South-Florida-Broker-Brian-Michael-Berger-Permanently-Barred-by-FINRA-1024x683-300x200 Dennis Farrah (CRD #2703960) is a former registered broker and investment advisor whose last employer was Taylor Capital Management Inc. (CRD #43559) of Aurora, CO. His previous employers include Sicor Securities Inc (CRD #16195); expelled by FINRA on 01/31/2014), also of Aurora, Questar Capital Corporation (CRD #43100) of Centennial, CO and Lifemark Securities Corp. (CRD #16204) of Rochester, NY. No current employment information is available. He has been in the industry since 1996.

Farrah submitted his resignation on 12/08/2017, and Taylor Capital notified FINRA by filing a U5 form, standard for registration terminations. Farrah voluntarily resigned after allegations. However, Taylor Capital amended the U5 on 1/23/2018, notifying FINRA that the state of Colorado was planning to file fraud charges for selling away without the firm’s knowledge or approval. His license was revoked by the state on 01/31/2018. On 07/12/2018, criminal charges of securities fraud were filed against Farrah.

Previously, Farrah declined to respond to FINRA’s request for information in the matter, and signed a letter of Acceptance, Waiver & Consent (AWC). FINRA barred Farrah effective 6/18/2018. In it, he neither admitted nor denied the charges, and agreed to the sanctions, which included an indefinite bar in all capacities.

Published on: September 13, 2018

FINRA Issues a Suspension for Network 1 Financial Services Wills Henriquez

by Silver Law Group

Wills Schneider Henriquez (CRD #1872198) is a previously registered broker who was last employed by Network 1 Financial Securities Inc. (CRD #13577) of Brooklyn, NY. His previous employers include Newport Coast Securities, Inc. (CRD #16944), also of Brooklyn, and Legend Securities, Inc., (CRD #44952) of New York, NY. These two firms, along with Success Trade Securities, Inc. (CRD #46027), where Henriquez was previously registered, have been expelled by FINRA. No current employment information is available. He has been in the industry since 1993.

Former Alexander Capital, L.P. Broker Peyton Nelson Jackson is No Longer Registered in the Securities Industry on elderfinancialfraudattorneys.com FINRA suspended Henriquez in all capacities, effective 7/2/2018 through 08/15/2018, and fined him $7,500 for effecting discretionary transactions in multiple customer accounts. These transactions were conducted without written consent from the customers, as well as without written authorization from the firm.

A number of transactions were marked “unsolicited,” when in fact, they were solicited. This caused a compliance issue with Network 1, who now had inaccurate customer transaction records. This activity took place between May 2013 through May 2017. Henriquez also mismarked 32 tickets from March 2016 through March 2017, violating FINRA Rules 4511 and 2010.

Published on: September 13, 2018

FINRA Hands Satya Brata Shaw Six-Month Suspension and $10K Fine

by Silver Law Group

Satya Brata Shaw (CRD #1229175) is a former registered broker and investment advisor last employed by Center Street Securities, Inc. (CRD #26898) of Wesley Chapel, FL, until November of 2016. His previous employers include Madison Avenue Securities, Inc. (CRD #23224) and AXA Advisors, LLC (CRD #6627) of Tampa, FL and MONY Securities Corporation (CRD #4386) of New York, NY. No current employment information is available. He has been in the industry since 1984.

Business Ventures and Suspension

Shaw was recently fined $10,000 and suspended by FINRA for six months, effective 08/07/2018 for numerous violations, including:

Published on: September 12, 2018

H.J. Sims Broker Laurence Green Accused Of Churning, Unsuitability

by Silver Law Group

Laurence Green (CRD #604082) is a formerly registered broker. His last registration was with Herbert J. Sims & Co. Inc. (CRD #3420) of Ellijay, GA, and was with them from 2002 until January of 2018. His previous employers include Ryan, Beck & Co., LLC. (CRD #3248) of Florham Park, NJ, Gruntal & Co., L.L.C. (CRD #372) of New York, NY, and A. F. Best Securities, Inc. (CRD #14335) of Coral Springs, FL. No current employment information is available. He began in the industry in 1980.

Green is the subject of two current disclosures, both customer disputes that are similar and listed as “pending.” The first was filed on 05/09/2018 by a customer who accuses Green of unsuitability, investing in risky oil and gas securities and churning, causing economic losses. No damages are specified.

The second customer complaint alleges “unsuitable investments, churning, breach of fiduciary and excessive trading” during 2013. In this case, the customer is requesting damages of $375,000.

Published on: September 11, 2018

Broker Hector May Investigated For Possible Ponzi Scheme And Defrauding Clients of $3.4M

by Silver Law Group

Hector May (CRD #323779) is a former registered broker and investment advisor, last employed with Securities America, Inc. (CRD #10205) of New York City. His previous employers include Prime Capital Services, Inc. (CRD #18334) of Poughkeepsie, NY, Equico Securities, Inc. (CRD #6627) and The Equitable Life Assurance Society Of The United States (CRD #4039) of New York City. He has been in the industry since 1973.

May has three disclosures filed this year. The first, on 03/08/2018, is an official criminal investigation by the US Department of Justice for a “suspected felony.” No additional information is available.

On 3/9/2018, May was discharged from Securities America due to “Misappropriation of client assets.”

Published on: September 11, 2018

James Edward Knee

by Silver Law Group

James Edward Knee (CRD #1852920) is a former registered broker and investment advisor who was last employed with Voya Financial Advisors, Inc. (CRD #2882) of Concord, NH. He was previously employed by Ameriprise Financial Services, Inc. (CRD #6363), Investors Capital Corp. (CRD #30613) and Cambridge Investment Research, Inc. (CRD #39543), all of Concord. He has been in the industry since 1988.

Knee is the subject of nine disclosures. One is regarding his discharge from Voya Financial Advisors, one is an unknown pending investigation in the state of New Hampshire, and one is a regulatory action initiated by FINRA. Of the six customer disputes, three were denied and three were settled.

South-Florida-Broker-Brian-Michael-Berger-Permanently-Barred-by-FINRA-300x200-300x200 FINRA barred Knee on 05/18/2018 after he refused to appear for on-the-record testimony. He was the subject of allegations of funds misappropriation during his tenures with both Voya and Ameriprise. After signing an Acceptance, Waiver & Consent (AWC) letter, Knee was indefinitely barred in all capacities.

Published on: September 11, 2018

Former Broker Thomas Logue Subject Of Multiple Disclosures

by Silver Law Group

Thomas Joseph Logue (CRD #1700554) is a former registered broker and investment advisor who was last employed by American Independent Securities Group, LLC (CRD #135288) of Hinsdale, IL. His previous employers include Investors Capital Corp. (CRD #30613) and First Midwest Securities, Inc. (CRD #21786), also of Hinsdale. No current employment information is available. He has been in the industry since 1990.

Boca-Raton-Financial-Advisor-Robert-Child-Faces-Yet-Another-Customer-Dispute-300x199 There are five customer disclosures in Logue’s record, the most recent of which was filed on 2/6/18. Two of these disputes were closed with no action, including the most recent one.

One customer action was filed on 12/8/2017, with allegations of “unsuitability” and requested damages of $127,520.30. This case is currently listed as “pending.”

Published on: September 11, 2018

Broker Dana Davis Subject Of Customer Disputes, Excessive Trading

by Silver Law Group

Dana H. Davis (CRD #1707708) is a currently registered broker currently employed by Newbridge Securities Corporation (CRD #104065) of New York, NY. His previous employers include First Montauk Securities Corp. (CRD #13755) of Hauppage, NY, Global Capital Securities Corporation (CRD #16184) of Englewood, CO, and Gilford Securities Incorporated (CRD #8076) of New York, NY. He has been in the industry since 1989.

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.com Davis’ most recent customer dispute was filed on 01/08/2018. In it, the customer alleges that Davis engaged in “misrepresentation, unsuitable and excessive trading, negligent supervision and breach of fiduciary duty.” The customer requests damages of $250,000. This case is currently listed as “pending.”

A previous complaint, filed on 10/10/2007, alleged that Davis engaged in churning, unauthorized trading, fraud, breach of fiduciary duty, among other things. The client requested $150,000 in damages, and the case was settled for $75,000. A broker’s comment states Davis was discharged as part of the settlement.