Articles Posted in Stockbroker Misconduct

Chapin Davis, Inc., of Baltimore, Maryland, submitted an AWC in which the firm was censured and fined by FINRA $35,000. Without admitting or denying the findings, Chapin Davis agreed to the sanctions and to the findings in connection with the sale of structured products, the firm’s supervisory system and WSPs…

Patricia Miller was associated with Investors Capital Corp from July 2010 until Investors Capital Corp fired her in May 2014.  In October 2014, FINRA suspended her in all capacities from any FINRA firm for her failure to cooperate in a FINRA investigation.  Investors Capital Corp is now facing multiple arbitration…

Candius J. Bannister, of Sarasota, Florida, was named a respondent in a FINRA complaint alleging that she borrowed over $30,000 from a customer in violation of Edward Jones’ procedures and FINRA’s rules. The complaint alleges that Bannister has failed to repay the loans or otherwise comply with the terms of…

Global Strategic Investments, LLC, of Miami, Florida, was named a respondent in a FINRA complaint alleging that it failed to investigate or report, where appropriate, unusual activity related to bond transactions and subsequent money transfers relating to a new business line. The FINRA complaint alleges that the firm launched a…

JPMorgan Chase & Co. is the first bank in a multi-defendant class action lawsuit to settle claims relating to allegations that the banks rigged the foreign exchange market.  Commonly referred to as the Forex market, over 5 trillion dollars a day is traded as investors rely on the honesty of…

Cantella & Co., Inc., of Boston, Massachusetts, submitted an AWC with FINRA in which the firm was censured, fined $50,000 and required to pay $81,973.65, plus interest, in restitution to customers for allegations relating to excessive commissions. Without admitting or denying the findings, Cantella consented to the sanctions and to…

Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (“Newport Coast”) and some of its current and former registered representatives, accusing them of using margin and risky securities to artificially generate huge commissions for themselves while wiping out most of their customers’ investment capital.…

In July 2013, the U.S. Securities and Exchange Commission (“SEC”) issued a lifetime ban upon Carl Birkelbach, the founder and principal of Birkelbach Investment Securities (headquartered in Chicago, Illinois), which prevents him from participating in any working capacity in the securities industry.  Mr. Birkelbach appealed the SEC’s ban, claiming in…

If the Connecticut Department of Banking (the “Department”) has its way, Meyers Associates and its owner, Bruce Meyers, will be barred from selling securities in Connecticut. A February 2014 Order to Cease and Desist issued by the Department, charges Meyers Associates and Bruce Meyers (“Respondents”) with numerous violations of Connecticut…

Of all the guarantees, bells and whistles associated with variable annuities, perhaps the biggest guarantee is the steep up-front commission the financial advisor can earn for selling the product. According to a recent Reuters’ article, variable annuity sales in the U.S. totaled $142.8 billion last year, and brokers can earn…