We are providing FREE consultations via PHONE or VIDEO conferencing for your safety and convenience. Read More!

A National Securities Arbitration & Investment Fraud Law Firm

Articles Posted in Failure to Supervise

Silver Law Group has filed a FINRA arbitration claim against IFS Securities and Voya Financial Advisors, Inc., two firms that employed Greenville, South Carolina-based broker James T. Flynn (CRD# 3082615).

In the securities arbitration complaint, the Claimant alleges that she entrusted Flynn with a significant amount of money to manage while he was employed with Voya Financial Advisors and IFS Securities. According to the complaint, Flynn then proceeded to recommend significant positions in illiquid investments and non-traded REITs, including a Phillips Edison REIT and a business development corporation (BDA) called Business Development Corporation of America.

Flynn proceeded to recommend, according to the FINRA arbitration complaint, the Claimant invest a significant amount of money in these investments. Claimant alleges Flynn made these recommendations solely due to the significant fees and commissions he would earn selling these products. Due to these unsuitable recommendations and IFS Securities and Voya Financial Advisors’ failure to supervise Flynn, Claimant allegedly lost a significant amount of money.

Dana H. Davis (CRD #1707708) is a currently registered broker currently employed by Newbridge Securities Corporation (CRD #104065) of New York, NY. His previous employers include First Montauk Securities Corp. (CRD #13755) of Hauppage, NY, Global Capital Securities Corporation (CRD #16184) of Englewood, CO, and Gilford Securities Incorporated (CRD #8076) of New York, NY. He has been in the industry since 1989.

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.comDavis’ most recent customer dispute was filed on 01/08/2018. In it, the customer alleges that Davis engaged in “misrepresentation, unsuitable and excessive trading, negligent supervision and breach of fiduciary duty.” The customer requests damages of $250,000. This case is currently listed as “pending.”

A previous complaint, filed on 10/10/2007, alleged that Davis engaged in churning, unauthorized trading, fraud, breach of fiduciary duty, among other things. The client requested $150,000 in damages, and the case was settled for $75,000. A broker’s comment states Davis was discharged as part of the settlement.

South-Florida-Broker-Brian-Michael-Berger-Permanently-Barred-by-FINRA-1024x683-300x200Herbert Voss, Jr. (CRD #1014475) is a previously registered broker and investment advisor, whose was last registered with StockCross Financial Services, Inc. (CRD #6670) of Beverly Hills, CA. His previous employers include UBS Financial Services Inc. (CRD #8174), also of Beverly Hills, and Waterhouse Securities, Inc. (CRD #7870). No current employment information is available. He has been in the industry since 1982.

FINRA began investigating Voss after allegations that he engaged in unauthorized trading in a customer’s account. After FINRA sent Voss a letter on 4/25/2018 requesting on-the-record testimony in the investigation, his counsel responded that Voss declined the request to testify at any time. Voss was then barred in all capacities by FINRA from associating with any associated brokerage, effective 5/23/2018. StockCross then discharged Voss from his employment.

Voss’ most recent customer complaint was filed on 12/15/2017, alleging “Poor Performance, Fiduciary Breach and Failure to Supervise.” Damages requested total $550,000. Voss’ response was that the facts are being discussed by counsel for both parties. The case is currently listed as “pending.”

Michael Barnett (CRD #5792242) is a currently registered broker and investment advisor working with J.J.B. Hilliard, W.L. Lyons, LLC of Marion, IL (CRD #453). He has been with Hilliard Lyons since 2012. Previously, Barnett was registered with Edward Jones (CRD #250) of Herrin, IL. He has been in the industry since 2010.

Bahram-Mirhashemi-Facing-Allegations-of-Elder-Financial-Fraud-300x200Barnett has three pending customer complaints in 2018, with the damages requested totaling $133,529.56. Two of these claims involve allegations of over-concentration and losses related to a company called Breitburn Energy (BBEP), and that the company was unsuitable for the clients. Both complaints include allegations of breach of contract and fiduciary duty, violation of Kentucky Consumer Protection Act, Kentucky Blue Sky Law, and the Illinois Consumer Fraud Act. The third 2018 complaint, also pending, allege “breach of fiduciary duty, violation of Illinois’ Securities Act (Section 815 ILCS 5/12 et al.), negligence/negligent misrepresentation/omission, breach of contract, restitution, common law fraud, and negligent supervision.”

In 2017, Barnett had two additional customer complaints. In one case, the client alleges “unauthorized trading in an unsuitable security.”  The second complaint alleges “misrepresentation, unsuitable investments, and unauthorized trading in a single security beginning in 2014 through 2015.” The client has requested damages of $1.5 million.

Former broker and investment advisor Michael Edward Fitz-Gerald (aka Michael Edward Fitzgerald, CRD #209062) was last registered with Morgan Stanley (CRD #149777) of San Francisco, CA. Previous employers include Morgan Stanley & Co. Incorporated (CRD #8209) and UBS Financial Services Inc. (CRD #8174), both of San Francisco. He began working in the industry in 1969.

New-York-Broker-Gregory-Flemming-Suspended-by-FINRA-300x200Fitz-Gerald is the subject of six disputes, dating back to 1987. The latest, filed on 6/6/2018, is pending, and requesting damages totaling $240,000 and allege, “inter alia, unsuitability with respect to investments in accounts -2014 to 2015.”

The previous dispute, filed on 2/14/2017, requested damages of $2,348,175.00, and settled for $185,000. The client alleged that his portfolio was insufficiently diversified from 2012 to 2016. A year before, in 2016, another dispute was filed, with the same allegation of insufficient diversification in the account from 2010 through 2015. The damages were unspecified, and case was settled for $50,000.

Securities Arbitration Claims Against National Securities Corp. on silverlaw.comAccording to some reports, nearly 1/3 of National Securities brokers have had regulatory issues, legal disputes, or personal financial problems that have been disclosed to investors

National Securities Corporation is one of the oldest financial firms in the U.S., dating back over 70 years. Its the main office is in Seattle, Washington, but the company has licenses to operate in every state in the country, as well as the District of Columbia, Puerto Rico, and the Virgin Islands.

National Securities Corporation is registered with the SEC and three self-regulatory organizations: Nasdaq, Cboe BZX Exchanged, Inc., and the Financial Industry Regulatory Authority (FINRA) – and it is with the latter agency that the company has come under intense scrutiny over the last couple of decades.

Jeffrey Fanning (CRD #1566859) is a former broker and investment advisor whose last employer was Liberty Partners Financial Services, LLC (CRD #130390) of West Palm Beach, FL. Previous employers include Banc One Securities Corporation (CRD #16999) of Chicago and Andrew Garrett Inc. (CRD #29931) of New York City.  No current employment information is available. He has been in the industry since 1986.

FINRA has suspended Fanning for six months as a broker, and one year as a principal following the allegations and findings that he failed to supervise and adequately address possible excessive trading. He has also been fined $20,000 in the case.

Failure-to-Adequately-Supervise-Prompts-FINRA-Suspension-of-Roman-Luckey-300x200Even when Liberty’s internal processes should have triggered a review, Fanning did not adequately address the trading issues. Fanning was, for a time, a 50% owner in Liberty, as well as Liberty’s CEO, CFO and FINOP. Fanning failed to establish and maintain written supervisory procedures (WSP) for the company to ensure that any excessive trading was reviewed, what the red flags were, and when to notify the customer of the potential for excess trading in their account.

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.

Picture1-2-300x150Sullivan 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.

Broker Jason McBride (CRD #1875972) is a registered broker and investment advisor employed by Presidential Brokerage, Inc. (CRD #28784) of Greenwood Village, CO. He has been with Presidential since 1995. His previous employers include VTR Capital, Inc. (CRD #21404) of New York City, Chatfield Dean & Co., Inc. (CRD #14714) also of Greenwood Village, CO, Venture Trading, Inc. (CRD #21404) of New York City, Marshall Davis, Inc. (CRD #16278), Donald & Co. Securities Inc. (CRD #7776) of Tinton Falls, NJ, Pacific Rim Securities, Inc. (CRD #13155) and Power Securities Corporation (CRD #15527). He has been in the industry since 1988.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/Clifford-J.-St.-Simon-Barred-from-FINRA-300x200.jpgMcBride has been the subject of five customer disputes in his career. The most recent was filed on 5/1/2018, by a client alleging “unsuitability, breach of fiduciary duty, negligence, failure to supervise, misrepresentation, omission, and breach of contract in the purchase of 2 non traded REITs and a limited partnership between February 2006 and August 2008.”  The client is requesting damages in the amount of $251,317.00. Presidential denies the claims, and McBride isn’t actually a named party in the complaint. The firm is defending itself against the claims.

A prior complaint was filed on 12/15/2015 by a disgruntled former employee and her husband. McBride, again, was not a named party in the complaint. The clients alleged “breach of fiduciary duty, breach of contract, negligence and unlawful termination and retaliation.” The wife was employed by Presidential as a Series 7 representative, studying for her Series 7 exam, and working as an assistant to McBride.

Here’s what you need to do now

Elder financial fraud continues to be a lucrative scheme in America, which is why seniors and their loved ones always need to keep their guard up. We have previously discussed how to spot fraud and what some financial institutions are doing to prevent it, and this piece serves as a guide on what to do about the fraud that has occurred.

Victims, their family members, or caregivers should follow these steps to help limit the damage:

Contact Information