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Articles Posted in FINRA Arbitration

On August 13, 2021, a FINRA arbitration panel ordered Respondent HighTower Securities LLC to fully refund its investor-customer’s purchases of GPB Automotive Portfolio LP and GBP Waste Management LP, which the investor had made in reliance upon the advice and recommendations of HighTower Securities. That investor presented substantial evidence to the FINRA arbitration panel that HighTower Securities failed in its obligations to conduct adequate due diligence regarding GPB Capital and its affiliates.  The SEC has charged GPB Capital and its affiliates with running a “Ponzi-like” scheme that raised approximately $1.8 billion. Much of that total was invested in the following funds:  GPB Holdings, LP / GPB Holdings Qualified, LP GPB Automotive Portfolio, LP GPB Holdings II, LP GPB Waste Management, LP / Armada Waste Management, LP  Financial advisors such as HighTower Securities LLC are being found responsible for investors’ GPB losses based upon evidence that they failed in their obligations to adequately investigate GPB and/or turned a blind eye to red flags concerning GPB’s finances and business operations when recommending GPB funds to their clients.  Broker-dealers are supposed to recommend only suitable investments to their clients and perform due diligence on the products they sell. FINRA-registered brokers and firms are subject to arbitration to resolve disputes.On August 13, 2021, a FINRA arbitration panel ordered Respondent HighTower Securities LLC to fully refund its investor-customer’s purchases of GPB Automotive Portfolio LP and GBP Waste Management LP, which the investor had made in reliance upon the advice and recommendations of HighTower Securities. That investor presented substantial evidence to the FINRA arbitration panel that HighTower Securities failed in its obligations to conduct adequate due diligence regarding GPB Capital and its affiliates. Continue reading ›

Earlier this year, Silver Law Group wrote an article about the serious issues posed by Robinhood’s founder not being a registered FINRA member and published an Expert Analysis on law360.com addressing the same issue.  FINRA is investigating Robinhood over its CEO, Vlad Tenev’s, failure to register as a broker with the Financial Industry Regulatory Authority, a self-regulatory organization responsible for overseeing the­­ brokerage industry.  Congress has authorized FINRA to protect investors by ensuring fair and honest dealing in the brokerage industry. One of the key ways FINRA accomplishes this is by overseeing more than 600,000 individual brokers across the country, who each must maintain a FINRA broker’s license by undergoing strenuous application and continuing education requirements. However, Vlad Tenev, Robinhood’s CEO, has never obtained FINRA registration.  Requiring heads of firms like Robinhood to register with FINRA would increase accountability on Wall Street. This is especially important in light of Robinhood’s recent initial public offering (NASDAQ: HOOD). The company currently has a market cap of just under $30 billion.Earlier this year, Silver Law Group wrote an article about the serious issues posed by Robinhood’s founder not being a registered FINRA member and published an Expert Analysis on law360.com addressing the same issue.

FINRA is investigating Robinhood over its CEO, Vlad Tenev’s, failure to register as a broker with the Financial Industry Regulatory Authority, a self-regulatory organization responsible for overseeing the­­ brokerage industry. Continue reading ›

Scott Silver, Silver Law Group’s managing partner, was recently interviewed for an article on Investmentnews.com that details the alleged “hot air” spewed by brokers to sell $1.8 billion of GPB Capital Holdings to investors.  Silver Law Group represents investors in claims to recover GPB investment losses. If you have losses from investing in GPB, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at ssilver@silverlaw.com.  Founded in 2013 by Scientologist David Gentile, GPB calls itself an alternative asset manager that invested in income-producing companies, including auto dealerships and a waste management company. To raise capital, GPB used dozens of regional broker dealers and advisory firms across the country to sell private placements  in its various funds to investors.  Investors in GPB were told by their brokers and financial advisers that they were buying into a company that would pay 8% distributions and may one day go public to give them additional return.  GPB Goes Downhill  GPB private placements have not performed the way investors believed they would. In 2018, GPB stopped paying distributions to customers. In 2019, the FBI raided the company’s offices, class action lawsuits were filed, and the company reported that the value of its funds was down significantly.Scott Silver, Silver Law Group’s managing partner, was recently interviewed for an article on Investmentnews.com that details the alleged “hot air” spewed by brokers to sell $1.8 billion of GPB Capital Holdings to investors.

Silver Law Group represents investors in claims to recover GPB investment losses. If you have losses from investing in GPB, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at ssilver@silverlaw.com. Continue reading ›

Silver Law Group and the Law Firm of David Chase have teamed up to file lawsuits on behalf of clients who were directed into fixed and variable annuities sold by Northstar Financial Services (Bermuda). Northstar is now in court-ordered liquidation proceedings after filing for Chapter 15 bankruptcy last year, unable to honor client surrender requests.  Claims Filed Against Broker-Dealers  Silver Law Group managing partner Scott Silver and David Chase are targeting the U.S.-based brokerage firms and financial management institutions that sold clients on the safety and reliability of Northstar’s fixed and variable rate annuity investment products when the risks were actually much higher due both to a lack of U.S. regulatory safeguards and the company’s history of mismanagement.  A FINRA complaint filed April 12, 2021 against one of those brokerages, Truist Investment Service (Sun Trust), seeks damages for lack of due diligence; breach of fiduciary duty, and negligence and negligent misrepresentation, among other violations. The complaint outlines how Sun Trust and one of its brokers assured two retiree clients that their retirement savings, traditionally invested in money markets and CDs, would be equally safe in Northstar Financial Services (Bermuda) annuities while steadily earning a fixed yield.Silver Law Group and the Law Firm of David Chase have teamed up to file lawsuits on behalf of clients who were directed into fixed and variable annuities sold by Northstar Financial Services (Bermuda). Northstar is now in court-ordered liquidation proceedings after filing for Chapter 15 bankruptcy last year, unable to honor client surrender requests. Continue reading ›

Silver Law Group has filed two FINRA arbitration claims to recover losses on behalf of Northstar Financial Services (Bermuda) investors who were recommended fixed and variable annuities. The arbitrations claims have been filed against the securities brokerage firms who recommended and solicited the Northstar Financial Services (Bermuda) investments to their customers.  Northstar is now in court-ordered liquidation proceedings after filing for Chapter 15 bankruptcy last year, and is unable to honor client surrender requests.  A FINRA complaint filed April 12, 2021 against one of the securities brokerage firms, Truist Investment Service (formerly known as SunTrust), seeks damages for lack of due diligence, breach of fiduciary duty, negligence and negligent misrepresentation. The complaint alleges that Sun Trust and one of its brokers misrepresented to two retiree clients that their retirement savings, traditionally invested in money markets and CDs, would be equally safe in Northstar Financial Services (Bermuda) annuities while steadily earning a fixed yield.Silver Law Group has filed two FINRA arbitration claims to recover losses on behalf of Northstar Financial Services (Bermuda) investors who were recommended fixed and variable annuities. The arbitration claims have been filed against the securities brokerage firms who recommended and solicited the Northstar Financial Services (Bermuda) investments to their customers. Continue reading ›

Do you have a family member who is also your stockbroker, investment advisor, or other financial services representative?  Many broker-dealer firms encourage newly-minted employees to recruit wealthy relatives to invest with them to begin their business and grow their client list. You may have taken the bait and moved your investments over, or may just be considering changing brokers to help them out. There isn’t anything wrong with doing this, of course, it’s your choice.  In many ways, you should treat them as you would anyone you’re considering to invest your money, since it is your money that’s on the line. The goal is to ensure that your money will be in safe hands, and handled professionally, family or not.Do you have a family member who is also your stockbroker, investment advisor, or other financial services representative?

Many broker-dealer firms encourage newly-minted employees to recruit wealthy relatives to invest with them to begin their business and grow their client list. You may have taken the bait and moved your investments over, or may just be considering changing brokers to help them out. There isn’t anything wrong with doing this, of course, it’s your choice. Continue reading ›

Broker-dealers under the Advisor Group (which includes SagePoint Financial, Royal Alliance Associates Inc., Triad, Woodbury Financial Services, and FSC Securities) have increased legal reserves by about $4.4 million compared to the prior year, according to SEC filings. According to an InvestmentNews article, Royal Alliance, SagePoint, and FSC increased their reserves by as much as three times the amount of the prior year. GPB Sales Cost Broker-Dealers The Advisor Group firms say they increased their reserves for “legal and regulatory matters”, but don’t say exactly what those matters are. One issue that may be costing the firms is the sale of GPB Capital Holdings private placements, which recently was charged with running a Ponzi-like scheme and had three of its senior executives arrested.Broker-dealers under the Advisor Group (which includes SagePoint Financial, Royal Alliance Associates Inc., Triad, Woodbury Financial Services, and FSC Securities) have increased legal reserves by about $4.4 million compared to the prior year, according to SEC filings. Continue reading ›

With the Department of Justice’s recent indictment of GPB Capital Holding’s executives, David Gentile, Jeffry Schneider, and Jeffrey Lash, for securities fraud, wire fraud, and conspiracy, it’s abundantly clear that investment fraud is alive and well in the industry.  In that case, it is estimated that broker-dealers sold GPB to over 2,000 investors, with losses of up to $1.8 billion. Although investors understand the risks associated with investing, they often aren’t aware of the many avenues available to them to recover their losses if they occurred due to negligence, misconduct, or fraud by financial advisors and stockbrokers. If this is you, here’s what you need to know to recoup your GPB investments.   FINRA Mediation Or Arbitration  One of the most common pathways to recoup an investment is through a FINRA mediation or arbitration. The Financial Industry Regulatory Authority (“FINRA”) is a government authorized non-profit designed to protect investors by overseeing and regulating U.S. broker-dealers. The government authorizes both the SEC and FINRA to take enforcement actions against broker-dealers who violate the law, including granting monetary awards to investors.With the Department of Justice’s recent indictment of GPB Capital Holding’s executives, David Gentile, Jeffry Schneider, and Jeffrey Lash, for securities fraud, wire fraud, and conspiracy, it’s abundantly clear that investment fraud is alive and well in the industry. Contact Silver Law Group to recover your GPB Losses. Continue reading ›

According to FINRA Disciplinary actions for February 2021, the following individuals were suspended from FINRA for failing to comply with a FINRA arbitration award or settlement agreement pursuant to FINRA rules:

NAME FORMER EMPLOYERS
  Lawrence Fawcett, Jr.   Westpark Capital, Inc.
  Salomon Whitney Financial
  Lawrence Freedman   Newbridge Securities Corporation
  Wells Fargo Clearing Services, LLC
  Ganesh Iyer   Morgan Stanley
  LPL Financial LLC
  Carolyn Neale   AXA Advisors, LLC
  UVest Financial Services Group, Inc.
  Paul Stanford   Santander Securities LLC
  Ameriprise Financial Services, Inc.
  Nelson Torrens   LPL Financial LLC
  UBS Financial Services Inc
  Wesley Wallace   Worden Capital Management LLC
  JD Nicholas & Associates, Inc.
  Maurice Wilde   Newbridge Securities Corporation
  IFS Securities

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