Churning

State of Arkansas Bars Worden Capital’s Yousuf Saljooki For Five Years

June 28, 2018 | Silver Law Group

Yousuf Saljooki (CRD #5045123, a/k/a “Joe Saljooki”) is a former registered broker with Worden Capital Management LLC (CRD #148366) of Melville, NY. His previous employers include SW Financial (CRD #145012), Legend Securities, Inc. (CRD #44952, expelled) and Tryco Securities, Inc. (CRD #104025), among others. No current employment information is available. He has been in the industry since 2006.

Saljooki has had two employment separations in less than a year, in part, due to a ban by the state of Arkansas. During the application process, Saljooki failed to disclose an outstanding 2016 federal tax lien of $227,859. The state denied his application, and he was banned for five years. First, SW Financial, then Worden discharged him after the denial. He is not currently registered with any FINRA-affiliated broker.

Two previous disclosures in 2018 include customer disputes with almost identical allegations of churning and unsuitability, as well as breach of contract/fiduciary duty and unauthorized trading. The two disputes have requested damages totaling over $1.5 million. Both cases are pending.

Puerto Rico Bonds Sold by Former Morgan Stanley Broker Angel Aquino

June 13, 2018 | Silver Law Group

We recently wrote about securities arbitration claims our securities attorneys are handling involving former Morgan Stanley broker Angel Aquino, (CRD #2687333), while he was a stockbroker with Morgan Stanley. He resigned from the company in July of 2017 after multiple customer complaints and securities arbitration claims. Current customer disputes filed against Aquino currently add up to nearly $12 million. A new related complaint was filed on May 8, 2018 against Aquino and Morgan Stanley (CRD #149777.) He is not currently registered as a broker, and no current employment information is available. Morgan Stanley continues to be subject to multiple claims relating to its recommendation and sale of Puerto Rico bonds.

The complaints stem from Aquino’s heavy emphasis on investments in Puerto Rico Cofina bonds. These are backed by the island’s sales tax revenue, and have triple-tax-free status. They became a popular investment for Wall Street banks to sell to retirees and other investors, but when things changed, the bonds didn’t pay as much and many advisors allegedly failed to disclose the risks with the bonds. But Aquino continued to sell his customers heavily on Puerto Rico bonds, even while they lost money.

Puerto Rico filed for bankruptcy in May of 2017 for relief of $70 billion in municipal debt. On September 20, 2017, Hurricane Maria swept through the island and destroyed crops, damaged aging infrastructure and flooded the cities. No clear path exists for Puerto Rico to meet its debt obligations.

What is a Securities Pump and Dump Scheme?

June 8, 2018 | Silver Law Group

A pump and dump scheme is a method used by fraudsters to artificially boost the price of a security that they own shares of in order to make a profit. According to the Securities & Exchange Commission, pump and dump schemes consist of two parts. First, stock promoters will try to boost the stock price by sharing misleading or false statements about the underlying company’s performance. The promoters may use several methods to spread this false information, including cold calling, emailing, and social media. The promoters may claim to have inside information on the company, and will often encourage their followers to quickly purchase shares of the stock.

Then, once the stock price is inflated by this false information, the promoter will put his own shares of stock on the market, selling them at an artificially high price. This harms investors purchasing these shares because they now hold stock that may drop drastically in price once it is revealed that the information is false.

Engaging in a pump and dump scheme is a violation of both FINRA rules and federal securities laws. FINRA requires that its members refrain from engaging in fraudulent or deceptive practices. FINRA also requires its members to “observe high standards of commercial honor and just and equitable principles of trade.”

FINRA Suspends Ryan Michael Murnane

May 25, 2018 | Silver Law Group

Broker Ryan Michael Murnane (CRD #4784140) has been suspended by FINRA for failure to provide requested information. The suspension was enacted on 02/12/2018. Since no action has been taken in the three-month period, the suspension has become a bar as of April 20, 2018. Murnane’s last employer of record was Alexander Capital LP (CRD #40077) of New York, NY, from 01/12/2017 through 04/03/2017. He is not currently registered with any broker-related firm.

Murnane’s previous employment history includes:

Woodstock Financial Group (CRD #38095), of Staten Island, NY, from 07/15/2015 through 02/07/2017. Murnane was discharged from this position; see details below.

Broker Bradley Everett Gardner Accused Of Churning, Resigns After Accepting Customer Check In His Name

May 4, 2018 | Silver Law Group

Bradley Everett Gardner (CRD# 4423724) is a former broker and investment advisor whose last known position in the financial industry was with LPL, LLC, (CRD# 6413) of Fort Bragg, CA. He worked for LPL from 02/27/2012 to 10/18/2017. Previously, Gardner worked for:

Raymond Jones Financial Services, Inc. (CRD# 6694) of Fort Bragg CA, from 06/01/2009 to 02/29/2012
Wells Fargo Advisors Financial Network, LLC (CRD# 11025) of Fort Bragg, CA, from 06/13/2005 to 06/02/2009

Silver Law Group is Investigating Edward Vincent Mirabella, Jr. of National Securities Corporation

May 3, 2018 | Silver Law Group

Silver Law Group is investigating former broker Edward Vincent Mirabella, Jr. (CRD #2843670) for multiple customer complaints. His last known employer was National Securities Corporation in their Edison, NJ location (CRD #7569), from 08/24/2009 to 05/13/2016.

Mirabella was previously employed with:

Aura Financial Services (CRD #42822) in Islandia, NY, from 03/27/2008 – 07/01/2009

Silver Law Group is Investigating Benjamin Aibel of Wunderlich Securities

May 1, 2018 | Silver Law Group

Benjamin Aibel (CRD# 1994) has been with the Memphis, Tennessee branch of Wunderlich Securities since 2012. In a regulatory action from 2017, FINRA found that Aibel failed to respond to a FINRA request for information. Aibel also failed to request termination of his earlier suspension within the allotted time. As a result, FINRA permanently barred Aibel from being associated with any FINRA member firm.

In addition to this regulatory action, Aibel has also been the subject of several customer disputes. In one dispute settled in 2016, the Claimant alleged over $600,000 in damages stemming from Aibel’s breach of fiduciary duty, negligence, unauthorized trading, and unsuitable recommendations. In three different customer disputes from 2002, the Claimants all alleged that Aibel misrepresented a corporate bond to Claimants; each claim occurred while Aibel was employed by Salomon Smith Barney, Inc. In a final claim from 2002, the Claimant alleged that Aibel provided unsuitable recommendations and engaged in churning in Claimant’s account; that claim settled for over $80,000.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

Silver Law Group is Investigating Christopher Bennett of Hilliard Lyons

March 6, 2018 | Silver Law Group

A Financial Industry Regulatory Authority (FINRA) arbitration panel awarded a customer of Christopher Bennett of Hillard Lyons damages of $445,000 after the claimant alleged Bennett engaged in breach of fiduciary duty, unauthorized trading, suitability, churning, misrepresentation, omission of facts, common law negligence, fraud, failure to supervise, common law negligent supervision and violation of Kentucky statutes, regulations and FINRA rules. The causes of action related to losses to the client’s qualified and non-qualified retirement accounts. The investor alleges Mr. Bennett executed transactions in her accounts without authorization, allocated her assets in an unsuitable manner for someone her age and with her investment objectives without discussing the risk associated with such re-allocation, and engaged in excessive trading in her accounts. A brokerage firm has a duty to supervise a stockbroker for compliance with the securities laws and internal firm rules and regulations.

Christopher Duke Bennett is currently registered with J.J.B. Hilliard, W.L. Lyons in Louisville, Kentucky, and has been since December 1995. He has six customer disputes against him, three of which are currently pending.

Contact Our Firm if You’ve Invested with Christopher Bennett

Silver Law Group is Investigating Patrick Maddren of Laidlaw & Company

March 6, 2018 | Silver Law Group

Laidlaw & Company financial advisor Patrick Maddren (CRD# 4665903) is the subject of a customer complaint for excessive trading and commissions. Maddren has been registered with Westpark Capital, Inc. in Fort Lauderdale, Florida since August 2017. Previously, he was registered with Laidlaw & Company in Fort Lauderdale, Florida from 2017 to September 2017. A recent customer arbitration claim was settled for $295,000. A brokerage firm has a duty to supervise its stockbrokers and prevent excessive trading or commissions. If a firm fails to properly supervise a financial advisor or otherwise mismanage a portfolio, an investor may have legal rights.

Contact Our Firm if You’ve Invested with Patrick Maddren

If you invested with Patrick Maddren and believe you have lost money due to his misconduct, you may be able to file a claim to recover your losses through FINRA arbitration. For a free evaluation of your potential case by as securities attorney, please contact Silver Law Group.

Silver Law Group is Investigating Claims Against Former Legend Equities Corp. Broker Walter J. Marino for Alleged Unsuitable Recommendations and Charging Excessive Commissions in Customer Accounts

February 7, 2018 | Silver Law Group

Silver Law Group is investigating former Legend Equities Corp. (“Legend”) broker Walter Joseph Marino (“Marino”) for allegations of unsuitable recommendations and charging excessive commissions and fees in customer accounts. Marino was employed by Legend’s Palm Beach Gardens, Florida office prior to his termination in July 2015.

The Financial Industry Regulatory Authority (“FINRA”) suspended Marino on 10/16/2017 for a 1-year period ending 10/15/2018 after Marino, without admitting or denying the findings, consented to FINRA’s findings that he had recommended unsuitable exchanges of variable annuity products to two customers without having a reasonable basis for recommending the transactions while at Legend Equities Corp. The transactions were found to benefit Marino and caused substantial harm to the customers.

In addition, in order to evade supervision, the complaint alleged that Marino lied to Legend about the source of the money used to purchase the new annuity. Instead of stating the new annuity was replacing another annuity, Marino stated on company documents that the purchases were paid for with a check.