FINRA Arbitration

FINRA Bans Broker Ramon Herrera

August 31, 2018 | Silver Law Group

Ramon Arturo Herrera (CRD #6021170) is a former registered broker and investment advisor, barred by FINRA. His last registered employer was Wells Fargo Clearing Services, LLC (CRD #19616) of Union City, NJ.

A customer dispute was filed by a client’s POA on 01/13/2018. The POA alleged that from 04/17/2018 through 11/17/2018, one of two financial advisors assigned to her conducted excess trading and made and an unauthorized withdrawal of $75,010 from her personal savings account. The FA in question was not named in the complaint. The case was settled for $105,000.

The next customer dispute was filed on 04/04/2018, alleging that Herrera withdrew funds from multiple client accounts without their permission. That case is pending, and the requested damages total $20,000.

Bradley Tennison Discharged and Barred By FINRA After Selling Away Allegations

August 29, 2018 | Silver Law Group

South-Florida-Broker-Brian-Michael-Berger-Permanently-Barred-by-FINRA-1024x683-300x200 Bradley Joseph Tennison (CRD #1561988) is a former registered broker and investment advisor who has recently been barred by FINRA. He was last registered with Genos Wealth Management of Mesa, AZ. He was previously employed with Oberlin Financial Corp. (CRD #103717) of Bryan, OH, First Allied Securities, Inc. (CRD #32444) of San Diego, CA, and D.E. Frey & Company, Inc. (CRD #23595) of Denver, CO. No current employment information is available. He has been in the industry since 1989.

Tennison has six disclosures, three of which are related to a client dispute that is currently pending. On 4/24/2018, a former firm client contacted Genos Wealth with a written complaint requesting assistance with a $300,000 investment Tennison recommended, called “The Joseph Project.” The letter alleges no statements were ever issued, and she was unsuccessful in getting her capital back or any of the promised returns. The client was told by Tennison that it was a 12 month “investment” with a 5% enhancement. She wired the $300K from her bank directly to where Tennison instructed her.

Upon examination, it was discovered that this “investment opportunity” was not something recommended or offered by the firm, and there were no records available. Tennison was “minimally responsive” to the firm’s request for information. On 4/25/2018, Genos Wealth discharged Tennison after he admitted that the former client’s money was wired to a third party that wasn’t investment related.

Senior Citizens in Florida Reportedly Scammed into Investing in Fake Fish Farm

August 29, 2018 | Silver Law Group

Several older investors reportedly fell victim to the scam, including a former police officer

From 2013 to 2014, several senior citizens living in South Florida invested over $400,000 in Blue Ocean Farm, a fish farm company. Three purported financial professionals reportedly solicited funds for the farm – Rebecca Gonzalez and Matthew Braun of Boca Raton and Michael Creamer of St. Petersburg. There was just one problem: the Florida Department of Law Enforcement says that the company was completely bogus.

The scheme was allegedly spearheaded by Gonzalez, and now she, Braun, and Creamer are facing several charges, including fraud, selling unregistered securities, and the sale of securities by an unregistered person. The trio reportedly targeted six older investors, all of which handed over thousands of dollars.

UBS Financial Advisor Walter Stucker

August 27, 2018 | Silver Law Group

New-York-Broker-Gregory-Flemming-Suspended-by-FINRA-300x200 Walter M. Stucker (CRD #2197844) is a registered broker and investment advisor, currently registered with Wells Fargo Clearing Services, LLC (CRD #19616) of Fort Worth, TX. He was previously employed by UBS financial services inc. (CRD #8174) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691), also of Fort Worth. He has been in the industry since 1991.

Stucker is the subject of three disclosures, the most recent filed on 04/08/2018. This customer arbitration claim alleges that he “unsuitably concentrated their portfolio in the energy sector and misrepresented the risks associated with those investments” from 2011 to 2017. The customer is requesting damages of $600,000. This case is currently pending.

The prior complaint, filed on 12/18/2017, was filed by a client’s attorney alleging “misrepresentation, suitability issues and over concentration in oil and gas limited partnerships” from July 27, 2011 to December 18, 2017. The client requested damages in the amount of $632,907.00; however, this claim was ultimately denied.

The SEC Has Proposed New Regulations for Fiduciaries

August 22, 2018 | Silver Law Group

What the new code of conduct rule entails and how it could affect elderly investors

Up until earlier this year, the Department of Labor had a rule in effect for fiduciaries that specified that they couldn’t earn commissions unless the advice they offered was in the best interests of their clients. In addition, the rule mandated that they could only earn reasonable compensation and must be transparent about this compensation as well as the products they sell.

However, in March, a federal appeals court struck down the DOL’s rule. Recently the SEC proposed their own rule – called Regulation Best Interest or Reg BI – that aims to address three areas:

Broker Michael B. Barnett Allegedly Invests Client Funds in Speculative Securities

August 21, 2018 | Silver Law Group

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-300x200 Barnett 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.

Multiple Complaints Against Former Broker Michael Fitz-Gerald

August 20, 2018 | Silver Law Group

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-300x200 Fitz-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.

August 15, 2018 | Silver Law Group

According 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.

Former Broker Ernest Romer Barred By FINRA After Two Investigations

August 13, 2018 | Silver Law Group

Ernest Julius Romer III (CRD #2311741) is a former registered broker and investment broker, last employed with CoreCap Investments, Inc. (CRD #37068) of Sterling Heights, MI. Previous employers include L.M. Kohn & Company (CRD #27913) and Leonard & Company (CRD #36527), both of Sterling Heights, and Comerica Securities (CRD #17079) of Warren, MI. No current employment information is available. He has been in the industry since 1993, and has a total of 36 disclosures in his FINRA record

Romer is currently the subject of two investigations by the state of Michigan into allegations from two clients that he “stole” money from them. The first was filed on 8/28/2017, the second on 9/1/2017. Both are accompanied by correlating FINRA arbitration cases.

The State of Michigan has also barred Romer from working as a broker in the state of Michigan and permanently revoked his license, and levied fines of $1.5 million against him.

Broker Stephen Sullivan Subject of 8 Disclosures

August 13, 2018 | Silver Law Group

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.

Picture1-2-300x150 Sullivan 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.