Gabriel Block (CRD#: 2103543, aka Gabe Block) is a former registered broker and investment advisor whose last employer was First Standard Financial Company LLC (CRD#:168340) of Red Bank, NJ. His previous employers include National Securities Corporation (CRD#:7569) and Oppenheimer & Co. Inc. (CRD#:249), both of Red Bank, as well as others in Purchase, NY, St. Louis, MO, Charlotte, NC, Boca Raton, FL, and New York, NY. Continue reading
Maxar Technologies Ltd (MAXR), a publicly-traded space technology company, is the subject of a class action lawsuit filed on behalf of investors who lost money investing in the company. If you lost money in Maxar Technologies or DigitalGlobe, we would like to talk to you.
MDA DigitalGlobe Merger
Maxar Technologies was created in October, 2017 with the merging of DigitalGlobe and MDA Holdings. Continue reading
Silver Law Group is investigating Wellington, Florida based company Winfield Capital Partners, LP and its principals, Richard W. Hartnett and Taryn E. Hartnett.
Winfield Capital Partners and Winfield Capital GP
Winfield Capital Partners is an investment fund managed by Winfield Capital GP LLC. Winfield Capital Partners began soliciting investors in or around 2016 after it filed a Form D with the Securities and Exchange Commission (SEC). According to Winfield Capital Partners’ filed Form D, the fund sought to raise approximately $55 million in investor funds. Continue reading
On May 1, 2018, FINRA Department of Enforcement entered into a settlement via Acceptance, Waiver, and Consent (AWC) with Respondent Laidlaw & Company. Without admitting or denying any wrongful acts, Laidlaw consented to a public censure by FINRA, the imposition of a $25,000 fine, as well as agreeing to give FINRA a written statement saying that systems mentioned in the AWC are designed to achieve compliance with “applicable securities laws, regulations, and rules.
FINRA Enforcement alleged that from April 2014 through December 2015, Laidlaw did not establish and maintain a supervisory system and written supervisory procedures (WSPs) designed to ensure that recommendations of leveraged and inverse exchange traded funds (Non-Traditional ETFs) complied with applicable securities laws and FINRA rules.
Non-Traditional ETFs are risky financial products because they are designed to return a multiple of an underlying benchmark or index over the course of a trading session. They are not intended to be held for more than a single trading session. FINRA Regulatory Notice 009-31 states “The performance of Non-Traditional ETFs over periods of time longer than a single trading session can differ significantly from the performance of their underlying or benchmark during the same period of time.”
John William Cutshall (CRD #874352) is a registered broker and former registered investment advisor currently employed with Lombard Securities Incorporated (CRD #27954) of Woodsboro, MD. His previous employers include Morgan Stanley (CRD #149777), RBC Capital Markets, LLC (CRD #31194) and Ferris, Baker Watts, LLC (CRD #285), also of Frederick, MD. He has been in the industry since 1979.
Cutshall has four recent disclosures in his record. The most recent is a pending FINRA disciplinary complaint filed by their Department of Enforcement on 8/10/2018 (the full complaint is available here.) His actions are described in detail regarding the misappropriation of trusts that he was administering for three individuals. Between 2012 and 2014, Custshall abused his position for these trusts (for one elderly woman and a now-deceased married couple), converting and improperly using funds from the trusts.
The trust provided for the couple’s disabled daughter, who was in a residential facility for intellectually disabled individuals. When the daughter died in 2012, Cutshall used his position as a trustee to write 34 checks from the trust for a total of $400,000. These checks were deposited into his own bank account. Cutshall then presented an unwitnessed handwritten note that was allegedly written by the deceased husband, but not the wife. The note named Cutshall as a 50% beneficiary, defending his converting of funds from the trust. He took a total of $463,000, which was more than he was entitled to, assuming the note was genuine. Cutshall never disclosed this note until 2013, and failed to disclose to two firms that he was a client’s trustee.
Leon Vaccarelli allegedly defrauded a total of nine clients out of more than $1 million
In May, former financial advisor Leon Vaccarelli was charged with 12 counts of fraud and money laundering in a federal court in Connecticut. If convicted on all of them, he could receive a maximum penalty of 210 years in prison. After pleading not guilty, Vaccarelli was released on a $100,000 bond.
Vaccarelli is alleged to have stolen money from several clients between 2011 and 2017. During that time, he reportedly informed his clients that their money would be invested in different places, including money market accounts and retirement products. What Vaccarelli actually did, according to investigators, was put the money into his own account and use it to pay his own expenses. In addition, federal prosecutors also say that he also used client money to make interest payments to other investors.
Silver Law Group is investigating brokers and brokerage firms that sold American Finance Trust, Inc. Recently, the American Finance Trust (Stock Ticker: AFIN) begins trading on the Nasdaq Exchange 40% less than what investors initially paid.
American Finance Trust went public and was listed on the Nasdaq Exchange in July 2018. American Finance Trust began trading on the exchange at $15-per-share, which is $10 less per share than what many investors paid when they initially purchased the investment, making it a collective billion-dollar disaster for investors.
Silver Law Group is investigating claims on behalf of investors who purchased American Finance Trust, Inc. (Nasdaq: AFIN) – a real estate investment trust (REIT) sponsored by AR Global with a focus on the management and acquisition of a service-focused tenant portfolio.
AFIN REIT LOSSES?
According to a report from investment bank, Robert A. Stranger & Co. Inc., AFIN American Finance Trust’s listing has been described as a “belly flop,” and has “eroded approximately $1,000,000,000.00 of the company’s equity value.”
As many brokers and other investment professionals know, investing in a REIT, or Real Estate Investment Trust, is something that’s best left to experienced, sophisticated investors. There’s a reason for that, and some recent activities have proven, once again, that illiquid REITs are definitely not for amateurs.
There are two types—publicly traded and nontraded. While both file papers with the SEC, file regular reports and must return 90% to shareholders, there are obvious differences. Of course, one is traded publicly, and the other isn’t. The idea is that eventual dividends come from the real estate that it’s invested in.
Do you live in Knoxville, Tennessee? Have you invested or lost money with 1st Global Capital?
1st Global Capital has recently filed for Chapter 11 Bankruptcy after investigations alleging sales of unregistered securities, sales of securities by unregistered brokers, and other acts of fraud in connection with the sales of securities. Several state attorney generals are also investigating the solicitation of multiple individuals into investing in MCA deals.
The alleged loan fraud totals $283 million.