Blog Category Archives — Page 2 of 8 — Securities Arbitration Lawyers Blog Published by Securities Arbitration Lawyers

The Woodbridge Group of Companies is Under Investigation by the SEC

November 28, 2017 | Silver Law Group

The organization may have violated the anti-fraud provisions of federal securities laws after raising $1 billion from investors

Since November of 2016, the Securities and Exchange Commission (SEC) has been looking into the Woodbridge Group of Companies, based in Sherman Oaks, California. The real estate investment company – which owns or controls 235 limited liability companies (LLCs) around the U.S. – could be involved in the improper sale of securities, says the government agency.

In August, all 235 LLCs received subpoenas in an attempt by the SEC to get information about a variety of things, including managers and members, as well as payments that have been made to Woodbridge. The deadline to produce relevant documents was the end of August, but the SEC filing states that they did not get a sufficient response. Now the SEC is seeking a federal order to get the LLCs to comply. The emails accounts of executives and salespeople are also being sought.

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations

November 23, 2017 | Silver Law Group

The two brokers are reported to have engaged in short-term trading that resulted in significant losses for their clients

Two brokers who worked for Windsor Street Capital, LP (also doing business as Meyers Associates, L.P.) are facing serious allegations. According to the Financial Industry Regulatory Authority (FINRA), Nas Adel Allan and Gregory Anastos are alleged to have made unsuitable investment recommendations to an elderly husband and wife, which resulted in the loss of substantial funds.

The complaint alleges that Allan and Anastos repeatedly recommended that their clients engage in short-term trading of a single security that their clients held for more than 35 years. Not only did this reportedly lead to a loss of money, but it generated almost $100,000 in commissions for the two brokers. FINRA states that “Allan’s recommendations were unsuitable in light of customers’ investment profile, lacked an economic rationale, and resulted in unwarranted losses and tax liabilities for them.”

Shreveport, LA-based Raymond James & Associates Discharges Broker James Edward Lyons

November 13, 2017 | Silver Law Group

Allegations of unauthorized trading surround Lyon’s discharge from member firm

After 34 years in the securities industry, former Raymond James & Associates broker James Edward Lyons is no longer registered with the Financial Industry Regulatory Authority (FINRA). According to his FINRA BrokerCheck report, Raymond James & Associates discharged Lyons in April 2017 due to allegations of unauthorized trading.

Unauthorized trading occurs when a broker purchases or sells securities in a non-discretionary customer account without prior customer authorization, and it is a FINRA sales practice violation. It occurs in accounts in which a customer has not received prior written discretionary authority from the customer to make transactions in the account.

James Vincent Marino : Elder Financial Fraud Alert

November 10, 2017 | Silver Law Group

The Edward Jones broker is permanently barred following allegations of accepting gifts from clients, along with using client credit cards

In August 2017, the Financial Industry Regulatory Authority (FINRA) indefinitely barred James Vincent Marino from acting as a broker or otherwise associating with firms that sell securities to the public.

Marino’s one and only employer for his three-year securities industry career, Edward Jones in Pompano Beach, FL, discharged the broker in October 2016 alleging, “Without prior notice to or approval from the Firm, Mr. Marino accepted gifts totaling approximately $20,500 from a Firm client. In addition, he was authorized to use the same client’s credit card and used that card for his benefit in the amount of approximately $6,700.”

The Elder Abuse Prevention and Prosecution Act

October 31, 2017 | Silver Law Group

On October 18, a new law went into effect that could be extremely beneficial to older investors. The Elder Abuse Prevention and Prosecution Act is a “multi-pronged approach to prevent elder abuse, protect victims, and prosecute perpetrators of elder abuse crimes.”

Immediately put in place are investigation and prosecution requirements for the Department of Justice (DOJ) in regard to crimes of elder abuse. Specifically, the new law will target telemarketing and email fraud designed to “induce investment for financial profit, participation in a business opportunity, or commitment to a loan.”

If someone is convicted of telemarketing or email fraud that targeted someone over the age of 55, they will be subjected to extra criminal penalties along with a mandatory forfeiture. The bill has also added health care fraud to the list of offenses that come with enhanced penalties.

FINRA Suspends Christopher Anthony Fernan

October 31, 2017 | Silver Law Group

The broker is accused of violating FINRA rules by borrowing money from a client

In May of this year, the Financial Industry Regulatory Authority (FINRA) contacted broker Christopher Anthony Fernan to get information involving a customer dispute. Because he failed to respond to the agency, he received a three-month suspension, which was lifted on September 20.

Fernan has been accused of borrowing $11,500 from a customer and only paying back $4,000. When Fernan’s firm – Salomon Whitney Financial – learned about his actions from the client in February of 2017, Fernan was fired.

LPL Financial, LLC (Linsco Private Ledger)

October 31, 2017 | Silver Law Group

Background Information

In terms of gross revenues and number of financial advisors, LPL Financial is ranked as the biggest independent broker dealer in the financial services industry. The company has financial advisors all over the U.S., mostly in small branch offices. And because there are so many small branch offices, LPL has several supervisory challenges.

LPL Financial was formed in 1989 as the result of a merger of two small brokerage firms: Linsco and Private Ledger. The original name was Linsco/Private Ledger, and that became LPL Financial, LLC in January of 2008.

Thomas Joseph Borruso’s Career in the Securities Industry is Over

October 26, 2017 | Silver Law Group

The former New York broker has been accused of over-concentration

Thomas Borruso can no longer act as a broker in the securities industry. In June of this year, he received a suspension from the Financial Industry Regulatory Authority (FINRA) stemming from a customer dispute. And when Borruso failed to provide FINRA with information it needed, the agency barred him permanently.

The dispute Borruso was involved in occurred in January of 2017. A customer alleged that Borruso over-concentrated the account in one equity position. The damages sought haven’t been specified, but they are believed to be over $5,000. The case is still pending.

Boca Raton-Based Broker Larry Charles Wolfe Fined and Suspended by FINRA

October 25, 2017 | Silver Law Group

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Allegations against the former broker include unauthorized trading, unsuitability, and fraud, among others

With 38 years of experience in the securities industry, Boca Raton-based Stoever, Glass & Company, Inc. broker Larry Charles Wolfe has a total of 14 disclosures listed on his Financial Industry Regulatory Authority (FINRA) BrokerCheck report.

Most recently, in June 2017, Wolfe received a $5,000 fine and 15-day suspension from participating in the securities industry for allegedly exercising discretion in the accounts of customers. He is reported to have submitted sell orders to sell one particular security in each customer account without obtaining prior written authorization from the customers or written approval of the accounts as discretionary from his member firm.

Wells Fargo Clearing Services Broker James R. Schaedler, Jr. Discharged by Firm, Barred by FINRA

October 25, 2017 | Silver Law Group

Schaedler is alleged to have exercised undue influence with elderly client owning $2.3 million-dollar estate.

After 16 years in the securities industry, Wells Fargo Clearing Services broker James R. Schaedler is now indefinitely barred by the Financial Industry Regulatory Authority (FINRA). According to his FINRA BrokerCheck report, Schaedler was discharged by Wells Fargo Clearing Services in January 2017 for allegedly allowing his daughter to receive funds via check from a client, the majority of which were subsequently received by Schaedler himself.

Then in June 2017, a FINRA disciplinary action was filed which stated, “FINRA commenced an investigation in January 2016 into allegations that Schaedler exercised influence over a former elderly client, who ultimately amended her trust making Schaedler a partial beneficiary and the residual beneficiary of her $2.3 million-dollar estate. The investigation was later expanded to include allegations that Schaedler also improperly received a $200,000 gift from a second elderly client.”