Churning

Broker Patrick Maddren

September 11, 2018 | Silver Law Group

Patrick Maddren (CRD #4665903) is a currently registered broker with Westpark Capital, Inc. (CRD #39914) of Fort Lauderdale, FL. His previous employers include Laidlaw & Company (UK) LTD. (CRD #119037), also of Fort Lauderdale, Dawson James Securities, Inc. (CRD #130645) of Boca Raton, FL, and Prestige Financial Center, Inc. (CRD #30407) of New York, NY. Two of his previous employers, Prestige and Sky Capital LLC (CRD #114657) of New York, were expelled by FINRA. He has been in the industry since 2004.

New-York-Broker-Gregory-Flemming-Suspended-by-FINRA-300x200 A customer dispute filed on 3/31/2016 alleges that Maddren “Failure to follow instructions, material misrepresentations and omissions, excessive trading and commissions, unauthorized trading, unsuitable recommendations, breach of contract. The customer requested damages of $1,000,000.00, and the case was settled for $295,000. Maddren denies the allegations, and was not named in the arbitration.

Maddren is the subject of four disclosures. Two of these are tax liens—one filed on 08/14/2012, for $75,630.00, and one filed on 06/26/2012 for $225,256.80. In the second disclosure, it is noted that Maddren was unaware of these liens and was made aware by his accountant. He is taking steps to remedy the liens.

FINRA Bars Former Raymond James Broker Stephen Murray After Allegations, Tax Lien

September 5, 2018 | Silver Law Group

Stephen Allen Murray (CRD #343722) is a former registered broker and investment advisor who was last employed by Raymond James & Associates, Inc. (CRD #705) of Palm Beach Gardens, FL. He was previously employed by Morgan Keegan & Company, Inc. (CRD #4161) of Jupiter, FL and First Financial Equity Corporation (CRD #16507) of Scottsdale, AZ. No current employment information is available. He began in the industry since 1973.

Murray is the subject of 10 different disclosures, dating back to 1982. The most recent, a regulatory action, occurred after he failed to respond to a FINRA request for information. Three letters were issued regarding the suspension, and Murray did not respond to any of them. He became permanently barred from associating with any FINRA representative as of 8/7/2018. No additional information is available.

The next disclosure was filed on 05/26/2017, a customer dispute alleging “churning, unauthorized trading; negligence, violation of FINRA rules . . .breach of contract, and breach of fiduciary duty. Activity date is: 6/2010 thru 4/2017.” The customer requested damages of $100,000, and the case was settled for $60,000.

Client Alleges Broker Robert Yasnis Churned Accounts

August 27, 2018 | Silver Law Group

Broker Robert Ruvein Yasnis (CRD #2399141) is a currently registered broker employed with Worden Capital Management LLC (CRD #148366) of New York, NY. His previous employers include Laidlaw & Company (UK) Ltd. (CRD #119037) of Melville, NY, Buckman, Buckman & Reid, Inc. (CRD #23407) of New York, NY, and Stephen A. Kohn & Associates, Ltd. (CRD #41067) of Lakewood, CO. He has been registered with a total of 18 brokerages (four of which have been expelled by FINRA) and has been in the industry since 1993.

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Yasnis is the subject of a currently pending customer dispute in which he is alleged to have engaged in “churning, unauthorized and unsuitable trading from 2014-2017.” The client is requesting damages of $148,119.00.

Christopher Kane Subject of $871K Customer Dispute

August 27, 2018 | Silver Law Group

Broker Christopher Kane (Christopher Brandon Kane CRD #5486515), was formerly registered with National Securities Corporation (CRD #7569) in South Norwalk, CT. He was previously employed with Laidlaw & Company (Uk) Ltd. (CRD #119037) of Stamford, CT and the now-defunct HFP Capital Markets LLC of New York, NY (CRD #44351; FINRA expelled this company on 06/25/2014.) He has been in the industry since 2007, and registered as a broker since 2010.

Kane has only one disclosure in his FINRA record, which was filed on 6/11/2018. In it, the client alleges “churning, unauthorized and unsuitable trading from 2012-2017.” Requested damages total $871,256.00. Kane was employed with Laidlaw & Company at the time of the allegations. The case is currently pending, and no additional information is available.

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Broker Michael Rosalia Subject Of Multiple Judgments, Tax Liens

August 13, 2018 | Silver Law Group

Michael Richard Rosalia (CRD #2323953) is a FINRA broker currently registered with Worden Capital Management LLC (CRD #148366) of Melville, NY. He has been with Worden since 12/2/2015. Rosalia’s previous employers include Rockwell Global Capital LLC (CRD #142485), also of Melville, American Capital Partners, LLC (CRD #119249) of Hauppage, NY, and Ladenburg, Thalmann & Co., Inc. (CRD #505) of New York City. He has been in the industry since 1993.

William-Slone’s-45-year-Career-Shows-14-FINRA-Disclosure-Events-300x219 Rosalia’s FINRA record contains 16 disclosures. The most recent was a customer dispute involving a client and the client’s children, with allegations of churning, improper use of margin, unsuitability and high commissions. The children contacted the firm, claiming to represent the customer. But without a power of attorney, or the presence of the client, neither Rosalia nor anyone else the firm could or would speak with them. Eventually, the client and his children had a conference with the firm’s CEO and attorney. The client and children sought damages of $503,828.39; the firm settled for $150,000 to avoid litigation and other related expenses.

Two of Rosalia’s disclosures are bankruptcy dismissals from 2013. Eight of the disclosures from 2009 through 2011 are tax lien judgments totaling $219,663.17. Rosalia’s comment in two of these cases indicated he assumed that they had been already reported on his U4.

Broker Stephen Sullivan Subject of 8 Disclosures

August 13, 2018 | Silver Law Group

Stephen Sullivan (CRD #3123249) is a broker currently registered with SW Financial (CRD #145012) of Melville, NY. His previous employers include Newbridge Securities Corporation (CRD #104065), Legend Securities, Inc. (CRD #44952) and Tryco Securities, Inc. (CRD #104025). Sullivan has worked in the industry since 1998, with a number of broker firms in New York State.

Picture1-2-300x150 Sullivan has 8 disclosures in his career, the first of which is a customer dispute filed on 5/7/2018. The client alleges Sullivan engaged in unsuitable transactions, excessive trading, and failure to supervise, requesting $540,618.00 in damages. Sullivan denies the allegations. In his response, Sullivan states that the client knew about all the transactions and authorized them before they were purchased. This case is currently pending.

In 2016, Sullivan was suspended by FINRA for 10 days and fined $5,000 for “exercising discretion” with two customer accounts without prior written authorization from the clients, and without written permission from the firm. He agreed to the sanctions, signed an Acceptance, Waiver & Consent (AWC) letter, paid the fine and was suspended from 03/07/2016 through 03/18/2016.

FINRA Bars Former Broker William Brunner After Customer Complaints

August 8, 2018 | Silver Law Group

South-Florida-Broker-Brian-Michael-Berger-Permanently-Barred-by-FINRA-300x200-300x200 William George Brunner (CRD #2610348) is a former registered broker and investment advisor. His last employer was Investment Planners, Inc. (CRD #18557) of Huntington, NY. He was previously employed with First Midwest Securities, Inc. (CRD #21786) and Pointe Capital, Inc. (CRD #112097), also of Huntington. He resigned from Investment Planners on 05/31/2017, and has not been registered with any FINRA-affiliated broker since. No current employment information is available. Brunner joined the industry in 1995.

FINRA recently began an investigation into allegations that Brunner was engaging in excessive trading, and “use of discretion without written authorization in customer accounts” while he was a registered broker. He was requested to give on-the-record testimony in regard to the investigation, and declined to do so. Brunner was indefinitely barred from affiliation with any FINRA broker, effective 04/06/2018.

The investigation stems from a customer complaint to Investment Planners on 05/10/2018 that alleged “suitability, discretion, client unaware of amount of fees paid, client did not receive statements and did not sign active trading letters (client did not allege RR signed letters). Mar 2015 – Feb 2017.” The customer requested damages in the amount of $1,000,000. The firm requested phone records and a written response from Brunner, and he resigned on 05/12/2018. The dispute is still listed as “pending.”

Donald Fowler Charged With Excessive Trading And Churning

August 7, 2018 | Silver Law Group

Broker Donald Fowler (CRD #4989632) is a broker currently registered with Worden Capital Management LLC (CRD #148366) of Rockville Center, New York. He has been with Worden since 2014. He was previously employed by J.D. Nicholas & Associates, Inc. (CRD #44791) of Syosett, NY, and American Capital Partners, LLC (CRD #119249) of Wantagh, NY. He has been in the industry since 2005.

sec-300x198 Fowler, along with another Worden broker, is the subject of an SEC complaint regarding excessive trading, churning, and what the SEC calls an “in-and-out” trading strategy. This generated bigger fees for himself and the other broker who was charged, but caused clients to suffer significant losses as a result.

Fowler is alleged to have recommended the strategy to his 27 clients at now-defunct J.D. Nicholas & Associates without any reason to believe it would benefit any one of them. He knew, or should have known, that the cost structure and nature of the trading would cause them all to lose money. Furthermore, at least three of his 27 accounts were the subject of “churning” (excessive training to generate more commissions and fees.) Both of these practices violated antifraud provisions in federal trading laws. This action is listed as “pending.”

Worden Capital’s Broker Gregory Dean Charged With Churning

August 7, 2018 | Silver Law Group

Stockbroker-Misconduct-1-300x150-300x150 Gregory Dean (CRD #4922996), currently employed with Worden Capital Management of Rockville, NY (CRD #148366) is the subject of multiple disclosures, mostly customer complaints. He is also the subject of a civil SEC complaint and one regulatory complaint, going back to 2013.

Dean’s previous employers include:

D. Nicholas & Associates, Inc. (CRD #44791) of Syosett, NY, from 01/16/2007 through 11/24/2014

Silver Law Group is Investigating David Barber of Madison Avenue Securities

July 25, 2018 | Silver Law Group

D Leon-Vaccarelli-Fined-and-Sanctioned-by-FINRA-300x199 avid Barber (CRD #1165082) was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Barber consented to the sanction and to the entry of findings that he failed to produce information and documents requested by FINRA during the course of an ongoing examination to determine whether he engaged in unauthorized trading in the accounts of customers of his member firm, exercised discretion in customer accounts without written authorization, or otherwise acted in violation of FINRA rules.

David Barber has been registered with Madison Avenue Securities in San Diego, California since 2015. In January 2018, a securities arbitration award granted a California investor over 2 million dollars in compensatory and punitive damages and attorney’s fees. The securities arbitration panel found Madison Avenue and Mr. Barber liable for churning, unauthorized trading and breach of fiduciary duty.

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