Securities Arbitration Lawyers Blog

Sales practice violations, misconduct and failure to respond to a FINRA request for information lead to suspension Formerly registered with Ameriprise Financial in California, ex-broker Li-Line Hsu was recently suspended by the Financial Industry Regulatory Authority (FINRA). He was suspended under Rule 9552 which was failure to keep information current…

Silver Law Group is investigating numerous registered investment advisors (“RIAs”) connected to Oregon-based Aequitas Management, LLC’s (“Aequitas”) “Ponzi-like” scheme and $350 million of investor losses. On March 10, 2016, the Securities and Exchange Commission (“SEC”) filed a complaint against Aequitas and its various subsidiaries. The complaint’s most damning allegations include…

On February 18, 2016, the FBI raided the headquarters of UDF, the manager of a family of real estate investment trusts (“REITs”) and other funds, sending shares of UDF’s largest fund, United Development Funding IV (“UDF IV”), tumbling 54% before NASDAQ halted trading, according to InvestmentNews. The FBI raid is…

A grand jury of the U.S District Court in Spartanburg, S.C. indicted former broker Claus C. Foerster (CRD# 1912949) for defrauding clients of $2.8 million over a 14-year period. Foerster perpetrated the fraud from 2000 to June 2014 while employed as a financial advisor at Smith Barney & Co., Morgan…

Failure to respond to FINRA’s request regarding customer loan ends securities career. In August 2015, Princor Financial Services Corp. broker Rick Esparza consented to findings he borrowed money from his client. The California broker allegedly made numerous withdrawals from his client’s variable annuity totaling a personal loan of $67,500. When…

Three most recent complaints involve allegations of suitability With almost 40 years in the securities industry, Child has a total of 14 disclosure events reported on his BrokerCheck record. Many events consist of customer disputes as to Child’s actions relating to customer brokerage accounts. The three most recent complaints involve…

Broker’s record includes failure to supervise, tax liens and civil judgments. In his 46 years in the securities industry, Oklahoma City investment advisor Carl Busch has six disclosure events listed on his official FINRA BrokerCheck record. The most recent event in December 2015 shows that FINRA sanctioned Busch $5,000 and…

Have you invested money with Cantone Research or its affiliates? In an official FINRA disciplinary proceeding in 2012, New Jersey brokerage firm Cantone Research Inc. (CRI) and firm Vice President and Chief Compliance Officer Christine Cantone (Cantone) agreed to the entry of findings, violations, and sanctions filed against both parties.…

Broker’s securities industry career is tainted with allegations, suspensions, and sanctions. For a second time in his 25-year securities industry career, Bailey has been suspended from acting as a broker or otherwise associating with firms that sell securities to the public. This most recent suspension in November 2015 is due…

According to FINRA Disciplinary actions for February 2016, the following individuals were suspended from FINRA for failing to comply with a FINRA arbitration award or settlement agreement pursuant to FINRA rules: NAME FORMER EMPLOYERS   Philip Wayne Conley   Merrill Lynch, Pierce, Fenner & Smith, Inc.   Wells Fargo Advisors,…