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Roy Joseph Failla (CRD #2786551) is a registered broker who is currently employed with First Standard Financial Company LLC (CRD #168340) of Red Bank, NJ. His previous employers include Alexander Capital, L.P. (CRD #40077), Brookstone Securities, INC. (CRD #13366, expelled by FINRA on 10/09/2012) and J.P. Turner & Company, L.L.C. (CRD #43177), all of Staten Island, NY. He has been in the industry since 1998.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/FINRA-Permanently-Bars-Honetta-C.-Kao-After-Allegations-of-Unauthorized-Trading-and-Mishandled-Accounts-300x200.jpgA customer dispute filed on 5/29/2018 alleges that Failla engaged in “unauthorized trading and unsuitable investments,” and requests damages of $1,500,000. Failla denies the allegations.

Two of Failla’s previous disputes were filed during Failla’s tenure at Brookstone Securities. The first, filed on 2/19/2010, alleged “excessive and unauthorized trading, fraud, breach of fiduciary duty, misrepresentation and unsuitability.”  This customer requested damages of $299,817.48, and the case settled for $75,000. The second case, filed on 5/25/2010, alleged “churning, unsuitable trades and misrepresentation.”  The client requested damages of $417,000.00, and the case was settled for $40,000.

In August, we told you about former broker Sean Brady (CRD #4365173) who was recently barred by FINRA and discharged by his employer, First Allied Securities, Inc. (CRD #32444) of St. Louis, MO.

Allegations-of-Sales-Practice-Violations-Cloud-Broker-Kenneth-Dlouhy-‘s-Record-300x200Since our last report, eight more customer disputes were recently filed against Brady, between 6/28/2018 and 07/03/2018. All these cases are pending, and the total of requested damages is an eye-watering $12,575,730.49.

Like the previous disclosures, these clients allege that Brady used the same practices, including:

Dexter Leroy Thomas (CRD #1074222) is a formerly registered broker and investment advisor who was last employed with United Planners’ Financial Services Of America A Limited Partner (CRD #20804) of Dallas, TX. His previous employers include LPL Financial LLC (CRD #6413), National Planning Corporation (CRD #29604) and Invest Financial Corporation (CRD #12984), all of Dallas.  He began in the industry in 1983, and passed away on August 4, 2018.

FINRA-Permanently-Bars-Barry-Hartman-From-Securities-Activity-for-Alleged-“Selling-Away”-Activities-300x209Two days before his death, United Planners discharged Thomas after he revealed to the firm that he had engaged in “selling away,” privately borrowing money and making investment arrangements with several individuals outside of the firm’s auspices. Many of these individuals later became customers of United Planners. Thomas revealed that he conducted these transactions without notifying the firm, and the firm promptly terminated his employment.

The first of a total of fifteen claims was filed on 7/31/2018, just two days before his discharge from United Planners. The last claim was filed on 9/23/2018. These claims alleged either “unsuitable investments” or detailing monies borrowed but not returned without the firm’s knowledge or approval. Of the fifteen claims listed in BrokerCheck, eight request financial damages from $22,000 to $8.1 million, for a total of $9,260,000. These claims are all listed as “pending.”

Ronald Harris Rothchild (CRD #4491932) is a registered broker and investment advisor currently employed with National Securities Corporation (CRD #7569 of Melville, NY.) His previous employers include Raymond James Financial Services, Inc. (CRD #6694) of Garden City, NY, Wells Fargo Advisors, LLC (CRD #19616) of Melville, NY, and David Lerner Associates, Inc. (CRD #5397) of Syosett, NY. He has been in the industry since 2002.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200Rothchild is the subject of eight disclosures, the most recent of which was a customer dispute filed on 7/30/2018. In it, the client alleges “breach of contract, negligence, unsuitability, breach of fiduciary duty.”  Damages requested are $100,000. This case is listed as “pending.”

Two previous customer disputes have been settled. The first, filed on 3/28/2018, alleges that from 7/26/2011 through 4/11/2016, Rothchild misrepresented certain investments that were unsuitable for her objectives. The client also alleges that her risk tolerance and investment objectives were incorrectly documented on her updated account paperwork.  This customer requested damages of $149,236.86, and the case was settled for $75,000.

Jackie Divono Wadsworth (CRD #2342163) is a former registered broker and currently registered investment advisor whose last employer was IMS SECURITIES, INC. (CRD #35567) of Houston, TX. She worked for IMS since 1994, and the firm was expelled by FINRA on 9/04/2018. Previously, she worked for Retirement Investment Group (CRD #7421), also of Houston. She has been in the industry since 1993.

National Securities Corporation: Frequent Customer Disputes with FINRA on silverlaw.comIn 2017, Wadsworth was involved in a customer dispute involving multiple claimants while at IMS Securities. In it, the claimants alleged that “a non-party under the supervision of Respondents induced Claimants to invest in unsuitable, high-risk, illiquid investments, including United Mortgage Trust (“UMT”), United Development Funding II (“UDF II”), and United Development Funding III (“UDF III”).”  These allegations also included “aiding and abetting fraud, aiding and abetting breach of fiduciary duty, civil conspiracy, civil RICO, civil RICO conspiracy, and negligent supervision.” Filed on 6/7/2017, the arbitration was completed on 11/8/2018, awarding a total of $963,836.00 to the claimants.

Following this award, Wadsworth failed to respond to an information request from FINRA, causing a suspension on 8/3/2018. She did not request her suspension to be terminated, and is now barred from any association in any capacity with any FINRA member.

Cory Bataan (CRD #2755223) has been employed with Emoire Asset Management Company since April 2008. Previous employment includes Empire Asset Management Company from April 2008 to August 2012, Ameritas Investment Corp. from December 2007 to April 2008 and Joseph Stevens & Company, Inc. from October 1996 to July 2001.

According to the FINRA BrokerCheck, there have been complaints against Mr Bataan.

Churning-Other-Allegations-Made-Against-Broker-Michael-Doyle-300x200In 2015, while employed by Aegis Capital Corp., Claimant alleges unsuitable recommendations and excessive fees & commissions.  Complaint was settled for $25,000.00.

George Mathis (CRD #4271854) has been employed with Raymond James & Associates since November 2011. Previous employment included Wells Fargo Advisors, LLC from January 2008 to November 2011, Wachovia Securities, LLC from January 2008 to May 2009 and A. G. Edwards & Sons, Inc. from November 2000 to January 2008.

According to the FINRA BrokerCheck, there have been complaints against George Mathis.

Allegations-of-Sales-Practice-Violations-Cloud-Broker-Kenneth-Dlouhy-‘s-Record-300x200In 2016 while employed by Raymond James & associates, Inc., Client alleges unsuitably, misrepresentation, omissions, breach of fiduciary duty, violations of NASD Conducts Rule 301(A), Conduct Rule 2010, FINRA Conduct Rule 2010, FINRA Rule 2111, Negligence, and breach of contract and vicarious liability. The activity date is 9/03/2013 through 1/28/2016. The complaint settled for $70,000.00.

John Maloney (CRD #726108) has been employed by Woodbury Financial Services Inc. since June 2016. Maloney was previously employed by Edward Jones from January 1981 to June 2016.

According to the FINRA BrokerCheck, there have been several complaints against Mr. Maloney.

Timothy-DiBlasi-Under-FINRA-Scrutiny-for-Lack-of-Compliance-Supervision-300x200 In 2016 Claimants allege Mr. Maloney’s recommendations to purchase individual equities were unsuitable. The complaint settled for $132,500.

Robert Abramowitz (CRD #4437589) is a currently registered broker and investment advisor employed with National Securities Corporation (CRD #7569) of Melville, NY. Previous employers include Oppenheimer & Co. Inc. (CRD #249) of Jericho, NY, Raymond James Financial Services, Inc. (CRD #6694) of Garden City, NY, and Wells Fargo Advisors, LLC (CRD #19616) of Great Neck, NY. He has been in the industry since 2001.

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.comAbramowitz has three disclosures in his record, all customer disputes. The most recent, on 7/30/2018, alleges “breach of contract, negligence, unsuitability, breach of fiduciary duty.”  The client is requesting damages of $100,000. No additional information is available.

A previous customer dispute was filed on 3/28/2018, alleging that from 7/26/2011 – 4/11/2016, her investment objectives and risk tolerance were incorrectly state on her new account documentation. Additionally, the client alleged that her investments were unsuitable and were “misrepresented to her.” The client requested damages of $149,236.86, and the firm settled for $75,000.

Kyusun Kim (CRD #2864085) is a registered investment advisor and previously registered broker, last employed and registered with Sandlapper Securities, LLC, of San Diego, CA. (He is also known as “Kyu Sun Kim” or “Kenny Kim.”) Kim’s previous employers include Independent Financial Group, LLC (CRD #7717), Lincoln Financial Advisors Corporation (CRD #3978), both also of San Diego, and The Lincoln National Life Insurance Company (CRD #2580) of Fort Wayne, IN. He began in the industry in 1997.

Kim is the subject of 23 customer disputes dating back to 2007. One dispute was denied; nine are pending, and the remaining thirteen are settled, with one settlement rescinded. The total for Kim’s twelve settled cases is $2,995,443. His nine pending complaints include requested damages totaling $2,950,000.

New Jersey Broker Richard Grant Cody May Be Facing Serious Penalties on elderfinancialfraudattorneys.comBetween 2008 and 2015, Kim was accused of soliciting the business of individuals who were retired or near retirement age, and recommended that they liquidate their pension plans and 401(k) to invest with him in so-called “alternative investments,” including things like non-traded real estate investment trusts (REITs.) Many of these customers had little or no investment experience, and were unfamiliar with these types of securities. The higher risk involved made them inconsistent with the more conservative objectives. Kim failed to disclose the extra risk involved in many of these securities, and most suffered substantial financial losses.

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