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Articles Posted in FINRA Arbitration

Jesus Rodriguez (CRD#: 4888685) is a former broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of El Paso, Texas. His former employers are Citigroup Global Markets Inc. (CRD#:7059) and    Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691), also of El Paso.  He has been in the industry since 2005.  Rodriguez has a total of nine disclosures, all from 2021. The earliest, filed on 7/15/2021, alleges that Rodriguez used a customer’s credit line for his own personal benefit. This claim is currently pending, and requests damages of $61,431.00. He voluntarily resigned from Morgan Stanley on 8/6/2021 when the allegations came to light.  Two customer disputes filed on 8/23/2021 have nearly identical allegations of improper withdrawals (one from 2017 through 2020). These two disputes were settled for $376,532.96 and $30,470.00, respectively.Jesus Rodriguez (CRD# 4888685) is a former broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of El Paso, Texas. His former employers are Citigroup Global Markets Inc. (CRD# 7059) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691), also of El Paso. He has been in the industry since 2005. Continue reading ›

Broker-dealer Joseph Stone Capital (CRD# 159744/SEC# 8-69014), based in Mineola, NY, has recently been fined by FINRA for allowing eight of its brokers to engage in excessive trading in their customers’ accounts. This practice is known as “churning,” and it always costs a customer money.  From January 2015 to June 2020, Joseph Stone Capital and eight of its brokers engaged in excessive trading in several customer accounts and made considerable commissions for themselves and the firm. This caused the customers to over-pay and never see a return on their investments.  FINRA made the announcement on September 8, 2022, and levied a fine of $1.04 million against the firm. The firm also failed to create adequate Written Supervisory Procedures (WSPS) that complied with FINRA Rule 2111.Broker-dealer Joseph Stone Capital (CRD# 159744/SEC# 8-69014), based in Mineola, NY, has recently been fined by FINRA for allowing eight of its brokers to engage in excessive trading in their customers’ accounts. This practice is known as “churning,” and it always costs a customer money. Continue reading ›

Boca Raton-based National Securities Corporation (NSC) has announced that it is closing its doors after 75 years. The recent announcement came after the firm filed termination papers with FINRA. The company’s representatives and advisors are now part of the company that began buying National Securities, B. Riley Wealth Management.  Although National Securities is closing, it appears to be a merger with B. Riley. The company bought a large stake in the parent company, National Holdings Corporation in 2018. In 2021, B. Riley purchased the remaining shares. The resulting merger has 900 representatives and $29 billion in client assets.  FINRA Sanctions National Securities Corporation   On June 23, 2022, FINRA issued sanctions against National Securities Corporation totaling $9 million that includes:  Disgorgement of $4.77 million Restitution of $625,000 to customers who purchased private placementsBoca Raton-based National Securities Corporation (NSC) has announced that it is closing its doors after 75 years. The recent announcement came after the firm filed termination papers with FINRA. The company’s representatives and advisors are now part of the company that began buying National Securities, B. Riley Wealth Management. Continue reading ›

Aegis Capital Corporation (CRD#15007) has reached an agreement with the US Securities and Exchange Commission (SEC) regarding the recommendations and sales of a complex and risky investment called variable interest rate structured products, or VRSP. The SEC filed a cease-and-desist order on July 28, 2022. In response, Aegis submitted an offer of settlement.  The action is the result of Aegis representatives making highly unsuitable recommendations to customers in two of their branch offices: Melville, NY, and Boca Raton, Fl. In both cases, the company’s supervisory procedures were not properly followed in relation to these recommendations to retail customers as well as material misstatements and omissions. Institutional customers were not affected.  VRSPs  These high-risk, illiquid investments are known as “principal at risk” investments because investors may or may not lose their principal. They have 15-year maturity periods and are not traded on any public market. Investors may have to keep them the entire 15-year period, since they are unlikely to be able to sell them on a secondary market.Aegis Capital Corporation (CRD#15007) has reached an agreement with the US Securities and Exchange Commission (SEC) regarding the recommendations and sales of a complex and risky investment called variable interest rate structured products, or VRSP. The SEC filed a cease-and-desist order on July 28, 2022. In response, Aegis submitted an offer of settlement. Continue reading ›

FiverrLossesSmallIn April 2022, when GWG Holdings, Inc. filed for a Chapter 11 bankruptcy, it left 27,000 investors wondering if the “L Bonds” they were holding were now worthless. If you’re one of those investors, you may be able to recover some of your losses, but you should get an attorney who specializes in recovering clients’ investments to help you. Continue reading ›

GWG Investors around the nation are still reeling from the recent news that GWG Holdings, Inc. and some of its subsidiaries filed for a Chapter 11 bankruptcy. GWG, a financial services company, owes $1.6 billion in “L Bonds,” financial instruments that pooled the money of investors to buy life insurance policies on the secondary market, with promises that the investors would make a profit from gains made after policyholders had died. An estimated 27,000 investors invested with GWG—for an average of $45,000 each. But all is not necessarily lost, as investors pursue various ways to recover their investments including claims against the selling brokerage firms.GWG Investors around the nation are still reeling from the recent news that GWG Holdings, Inc. and some of its subsidiaries filed for a Chapter 11 bankruptcy. GWG, a financial services company, owes $1.6 billion in “L Bonds,” financial instruments that pooled the money of investors to buy life insurance policies on the secondary market, with promises that the investors would make a profit from gains made after policyholders had died. Continue reading ›

Securitiesfraudattorneys.comSecuritiesfraudattorneys.com is pursuing investor claims relating to the recent Chapter 11 bankruptcy filing by GWG Holdings, Inc. and some of its subsidiaries. With its web presence as Securitiesfraudattorneys.com, Silver Law Group’s attorneys are knowledgeable about both the law and facts necessary to help their clients recover their investments.  GWG, a financial services company, created “L Bonds,” financial instruments that pooled the money of investors to buy life insurance policies on the secondary market. Investors believed that they would profit off of the policies once policyholders had died. But GWG has now filed bankruptcy and said it owes $1.6 billion in the “L Bonds.”  An estimated 27,000 investors invested with GWG—for an average of $45,000 each.  However, some investors lost substantially more and some brokers overconcentrated their clients in the bonds. is pursuing investor claims relating to the recent Chapter 11 bankruptcy filing by GWG Holdings, Inc. and some of its subsidiaries. With its web presence as Securitiesfraudattorneys.com, Silver Law Group’s attorneys are knowledgeable about both the law and facts necessary to help their clients recover their investments. Continue reading ›

If you are one of the estimated 27,000 investors who purchased L Bonds from GWG, you may be unsure of how to respond to the news that GWG Holdings, Inc. and some of its subsidiaries recently filed for a Chapter 11 bankruptcy. The company is estimated to have $1.6 billion in debt. As an investor, you have options for trying to recover your investment, and it’s important to consider which are the most likely to help you recoup your investment. While L Bond investors will be included as creditors in the Chapter 11 proceeding, it’s unlikely that this will result in a substantial repayment of your investment. Instead, you may receive pennies-on-the-dollar. Therefore, your best bet for recovery may be through a Financial Industry Regulatory Authority (FINRA) arbitration. FINRA is a government-authorized not-for-profit organization that oversees U.S. broker-dealers. Investors can request either mediation or arbitration to resolve a dispute between the investor and a broker-dealer or their firm. FINRA proceedings tend to be resolved much more quickly, and at less expense, than traditional lawsuits. If you are one of the estimated 27,000 investors who purchased L Bonds from GWG, you may be unsure of how to respond to the news that GWG Holdings, Inc. and some of its subsidiaries recently filed for a Chapter 11 bankruptcy. The company is estimated to have $1.6 billion in debt. As an investor, you have options for trying to recover your investment, and it’s important to consider which are the most likely to help you recoup your investment. Continue reading ›

Silver Law Group represents investors who are facing financial losses due to the recent Chapter 11 bankruptcy filing by GWG Holdings, Inc. and some of its subsidiaries. Silver Law’s clients include those who purchased GWG’s “L Bonds,” financial instruments that GWG had created and were then sold by unscrupulous broker-dealers. GWG was pooling investors’ money to buy life insurance policies on the secondary market, with GWG promising that investors—buyers of the L Bonds—would see a profit when the policyholders died. However, even before GWG’s bankruptcy, the Securities and Exchange Commission (SEC) was rumored to be investigating the company. Silver Law Group represents clients in petitions with Financial Industry Regulatory Authority (FINRA), a government-authorized not-for-profit organization that oversees U.S. broker-dealers. Silver Law is also requesting arbitrations to resolve disputes between its clients and the broker-dealers who sold the GWG investments.Silver Law Group represents investors who are facing financial losses due to the recent Chapter 11 bankruptcy filing by GWG Holdings, Inc. and some of its subsidiaries. Silver Law’s clients include those who purchased GWG’s “L Bonds,” financial instruments that GWG had created and were then sold by unscrupulous broker-dealers. Continue reading ›

A recent Wall Street Journal article details the process by which GWG Holdings’ founders and a board director used hundreds of millions of dollars paid by GWG L Bonds investors to fund their own startups and kept their startups away from investors.  Silver Law Group represents GWG L Bonds investors in FINRA arbitration claims to recover their investment losses. Contact us at 800-975-4345 for a no-cost, confidential consultation.  GWG Sells $1.3 Billion In L Bonds  GWG Holdings is a Dallas, TX-based financial services company that offered alternative investments and life insurance. The company was founded in 2006 by Jon and Steven Sabes.  The company created their L Bond in 2012. Borrowed money was used to buy life insurance policies from people who wanted cash, and L Bond investor money was used to pay premiums and buy new policies. GWG would collect the payout when the policyholder died and pay investors a portion of the profits, investors were told.A recent Wall Street Journal article details the process by which GWG Holdings’ founders and a board director used hundreds of millions of dollars paid by GWG L Bonds investors to fund their own startups and kept their startups away from investors.

Silver Law Group represents GWG L Bonds investors in FINRA arbitration claims to recover their investment losses. Contact us at 800-975-4345 for a no-cost, confidential consultation. Continue reading ›

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