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Articles Posted in FINRA Arbitration

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James Thaddeus Walesa (CRD# 1061209), a financial broker, with 39 years of industry experience, has been sued by FINRA, for selling away. At the time of the alleged misconduct, James Walesa was registered with Arkadios Capital in Park Ridge, Illinois. His BrokerCheck history shows 18 disclosures.  One was in 2013 and the remaining 17 between 2020-2025.  These allegations include recommending unsuitable investments, often in companies where he held ownership, operational, or management roles.  Complaints raise concerns about breach of contract, fiduciary duty violations, negligence, failures in due diligence, and misrepresentations or omissions related to alternative investments.James Thaddeus Walesa (CRD# 1061209), a financial broker with 39 years of industry experience, has been sued by FINRA, for selling away.

At the time of the alleged misconduct, James Walesa was registered with Arkadios Capital in Park Ridge, Illinois. His BrokerCheck history shows 18 disclosures. One was in 2013 and the remaining 17 between 2020-2025. These allegations include recommending unsuitable investments, often in companies where he held ownership, operational, or management roles. Complaints raise concerns about breach of contract, fiduciary duty violations, negligence, failures in due diligence, and misrepresentations or omissions related to alternative investments. Continue reading ›

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Silver Law Group founder and managing partner Scott Silver recently commented on a case in which a former Wells Fargo customer requested to have an arbitration decision overturned because he felt that he was “improperly induced” into signing a release agreement prior to seeking arbitration. “This case highlights the way big brokerage firms clean up situations with bad brokers by protecting themselves instead of protecting their customers and advising them of significant misconduct,”  Scott said in an email to AdvisorHub The case stems from a former Wells Fargo broker, Scott Wayne Reed (CRD# 3007033), of Scottsdale, AZ, who persuaded his brokerage customers into investing in a private software company without the firm’s approval, known as “selling away.”  The now-defunct entity, called Pebblekick, was a streaming company based in Pasadena, CA. Reed solicited six investors, invested $200,000 of his own funds into the company, and received a commission of $191,340 for his work recruiting six new investors. As a result, FINRA barred Reed from the industry in 2021. Kenneth Grover, the client, originally signed an agreement with Wells Fargo that would forgive his margin call debt with the firm after his broker, Reed, was barred. Grover’s signing of the release agreement in exchange for the debt forgiveness also dismissed any other claim he might have against the wirehouse.Silver Law Group founder and managing partner Scott Silver recently commented on a case in which a former Wells Fargo customer requested to have an arbitration decision overturned because he felt that he was “improperly induced” into signing a release agreement prior to seeking arbitration.

“This case highlights the way big brokerage firms clean up situations with bad brokers by protecting themselves instead of protecting their customers and advising them of significant misconduct,”  Scott said in an email to AdvisorHub Continue reading ›

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When a broker-dealer terminates a broker, it doesn't mean the problems are gone. Some firms continue to deal with those problems for some time. In the case of United Planners’ Financial Services of America, they are still handling the fallout from the firm's former broker, Philip Anthony Riposo (CRD# 400056), who was fired in March of 2022. United Planners and Riposo’s clients, Susan Cushing and Curtis Miller brought a FINRA arbitration against  United Planners’ in 2023, and were recently awarded $346,000 in damages, plus interest, in a recent FINRA arbitration.When a broker-dealer terminates a broker, it doesn’t mean the problems are gone. Some firms continue to deal with those problems for some time. In the case of United Planners’ Financial Services of America, they are still handling the fallout from the firm’s former broker, Philip Anthony Riposo (CRD# 400056), who was fired in March of 2022.

United Planners and Riposo’s clients, Susan Cushing and Curtis Miller brought a FINRA arbitration against  United Planners’ in 2023, and were recently awarded $346,000 in damages, plus interest, in a recent FINRA arbitration. Continue reading ›

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Have you suffered losses after your broker recommended buying shares of the Aegis-underwritten company Farmmi? This is one of many Aegis-backed companies that has cost investors big losses.  Silver Law Group is a securities law firm that looks after investors’ interests. If you or someone you know have suffered losses from an Aegis investment recommendation, contact Attorney Scott Silver at ssilver@silverlaw.com or toll-free at (800) 975-4345 for a free consultation. Farmmi ( FAMI) is a China-based agricultural firm specializing in the production of edible mushrooms and the development of its exclusive agrarian technology. It runs an extensive network of family farms to grow its products. The company’s US headquarters is in San Francisco, with an additional 636,000 square foot warehouse and transportation facility in Los Angeles opened in 2024. Farmmi recently opened a similar facility in Somerset, NJ. The company exports its products throughout Southeast Asia, China, and Japan, as well as Europe, the Middle East, and North America.Have you suffered losses after your broker recommended buying shares of the Aegis-underwritten company Farmmi? This is one of many Aegis-backed companies that has cost investors big losses.

Silver Law Group is a securities law firm that looks after investors’ interests. If you or someone you know have suffered losses from an Aegis investment recommendation, contact Attorney Scott Silver at ssilver@silverlaw.com or toll-free at (800) 975-4345 for a free consultation. Continue reading ›

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Did your broker recommend buying shares in Document Security Systems (DSS) which was underwritten by Aegis Financial?   Document Security Systems, Inc., is a multinational company now known as DSS that operates a variety of business segments including healthcare, direct marketing, consumer packaging, real estate, renewable energy, blockchain security, and securitized digital assets. The company’s prospectus filed with the SEC indicates that the company's focus is fraud and counterfeit protections for printed documents and digital assets and information. The company also holds multiple technology patents to prevent unauthorized copying and scanning.  SLCG Report Highlighting Aegis Financial  According to a recent report by SLCG Economic Consulting, DSS is one of many companies whose stocks would have been delisted had Aegis not continued underwriting them in order to resell them to its customers, costing investors billions of dollars in losses.  Did your broker recommend buying shares in Document Security Systems (DSS) which was underwritten by Aegis Financial?

Document Security Systems, Inc., is a multinational company now known as DSS that operates a variety of business segments including healthcare, direct marketing, consumer packaging, real estate, renewable energy, blockchain security, and securitized digital assets. The company’s prospectus filed with the SEC indicates that the company’s focus is fraud and counterfeit protections for printed documents and digital assets and information. The company also holds multiple technology patents to prevent unauthorized copying and scanning.  Continue reading ›

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Brokerage firm Aegis Capital’s track record has come under fire after SLCG Economic Consulting published a report on the firm’s offerings in the last few years. The report calls Aegis Capital a “farm-to-table securities fraud purveyor” after their underwriting and subsidizing of consistently failing small cap stock companies. Aegis' underwriting included propping up companies “constantly on the verge of delisting and bankruptcy.” These failing stocks were sold to Aegis' retail brokerage customers, then traded and re-traded “at significant markups and markdowns,” with considerable financial incentives for brokers who did. Trading in these worthless stocks led to Aegis’ investors losing at least $5 billion, according to the report. These companies included:Brokerage firm Aegis Capital’s track record has come under fire after SLCG Economic Consulting published a report on the firm’s offerings in the last few years. The report calls Aegis Capital a “farm-to-table securities fraud purveyor” after their underwriting and subsidizing of consistently failing small cap stock companies. Continue reading ›

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Michael Magruder (Michael Edwin Magruder CRD# 4579211) is a previously registered broker and investment advisor last employed with Raymond James & Associates, Inc. (CRD# 705) of Orlando, FL. His previous employers include Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691) of Destin, FL, Wells Fargo Advisors, LLC (CRD# 19616) of Southlake, TX, and Raymond James & Associates, Inc. (CRD# 705) of Dallas, TX. He has been in the industry since 2003. Magruder is the subject of four disclosures, two of which are customer disputes. In the first dispute, dated 7/3/2024, the client alleged that Magruder requested a loan, which they agreed to and made. The client requested damages of $175,000, and the claim was settled for $189,259.57. The second dispute, dated 7/6/2024, included both a loan from the client to Magruder as well as failing to follow the client’s request to sell a particular stock in their account. The claim’s settlement was for $300,000. No other details are available.Michael Magruder (Michael Edwin Magruder CRD# 4579211) is a previously registered broker and investment advisor last employed with Raymond James & Associates, Inc. (CRD# 705) of Orlando, FL. His previous employers include Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691) of Destin, FL, Wells Fargo Advisors, LLC (CRD# 19616) of Southlake, TX, and Raymond James & Associates, Inc. (CRD# 705) of Dallas, TX. He has been in the industry since 2003. Continue reading ›

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An elderly retiree has been awarded $152,382.41 in compensatory damages and attorneys’ fees of $48,762.37 in a FINRA arbitration against broker-dealer Citizens Securities relating to the sale of Colorado Bankers’ annuities. Most of the FINRA arbitration fees were to be paid by the broker-dealer. The action resulted from the client’s purchase of Colorado Bankers’ Life annuities. In the arbitration, the retiree’s legal counsel argued that Citizens Securities violations included breach of contract and warranties, promissory estoppel; violation of state securities statutes; state insurance statute violations; breach of fiduciary duty; claims under common law; and vicarious liability. Citizens Securities heavily promoted these annuities, offering high commissions and incentives to brokers for selling them. But when North Carolina regulators seized company assets, investors’ money was frozen and unavailable. Most were elderly retirees and investors who bought Colorado Bankers’ Life annuities for the income from the dividends and were then left without that income.An elderly retiree has been awarded $152,382.41 in compensatory damages and attorneys’ fees of $48,762.37 in a FINRA arbitration against broker-dealer Citizens Securities relating to the sale of Colorado Bankers’ annuities. Most of the FINRA arbitration fees were to be paid by the broker-dealer. Continue reading ›

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Silver Law Group’s managing partner Scott Silver discussed a recent ruling from a California court that gave two brokers a temporary restraining order (TRO) against FINRA in arbitration over their sales of GHG Holdings’ illiquid L-Bonds.  “This appears to be a Hail Mary pass by two brokers who are taking a ‘never say die’ approach to arbitration,” Scott said in a recent AdvisorHub article. "In this case, FINRA's position is correct, straightforward, and investor friendly."Silver Law Group’s managing partner Scott Silver discussed a recent ruling from a California court that gave two brokers a temporary restraining order (TRO) against FINRA in arbitration over their sales of GWG Holdings’ illiquid L-Bonds.

“This appears to be a Hail Mary pass by two brokers who are taking a ‘never say die’ approach to arbitration,” Scott said in a recent AdvisorHub article. “In this case, FINRA’s position is correct, straightforward, and investor friendly.” Continue reading ›

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James Roy Paige (CRD# 1726609) is a broker and investment advisor currently registered with Wells Fargo Clearing Services, LLC (CRD# 19616) of Vero Beach, FL. Previously, he was registered with Morgan Stanley, (CRD# 8209 and CRD# 7556) also of Vero Beach, and Blinder, Robinson & Co., Inc. (CRD# 5096, no location given.) He has been in the industry since 1987. In a dispute filed on 2/6/2024, a customer alleged that Paige made recommendations to them that were “unsuitable and too risky for Claimants' investment knowledge and needs.”  No requested damages are listed.James Roy Paige (CRD# 1726609) is a broker and investment advisor currently registered with Wells Fargo Clearing Services, LLC (CRD# 19616) of Vero Beach, FL. Previously, he was registered with Morgan Stanley, (CRD# 8209 and CRD# 7556) also of Vero Beach, and Blinder, Robinson & Co., Inc. (CRD# 5096, no location given.) He has been in the industry since 1987. Continue reading ›

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