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Articles Posted in FINRA Disciplinary Actions

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Two-South-Florida-Brokers-in-the-FINRA-Spotlight-for-Making-Inappropriate-Loans-300x199On May 1, 2018, FINRA Department of Enforcement entered into a settlement via Acceptance, Waiver, and Consent (AWC) with Respondent Laidlaw & Company. Without admitting or denying any wrongful acts, Laidlaw consented to a public censure by FINRA, the imposition of a $25,000 fine, as well as agreeing to give FINRA a written statement saying that systems mentioned in the AWC are designed to achieve compliance with “applicable securities laws, regulations, and rules.

FINRA Enforcement alleged that from April 2014 through December 2015, Laidlaw did not establish and maintain a supervisory system and written supervisory procedures (WSPs) designed to ensure that recommendations of leveraged and inverse exchange traded funds (Non-Traditional ETFs) complied with applicable securities laws and FINRA rules.

Non-Traditional ETFs are risky financial products because they are designed to return a multiple of an underlying benchmark or index over the course of a trading session. They are not intended to be held for more than a single trading session. FINRA Regulatory Notice 009-31 states “The performance of Non-Traditional ETFs over periods of time longer than a single trading session can differ significantly from the performance of their underlying or benchmark during the same period of time.”

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FINRA recently fined LPL Financial (CRD #6413) for failing to disclose customer complaints and for failures in the firm’s anti-money laundering (AML) program.

David-Levy-of-Titus-Rockefeller-LLC-Permanently-Barred-from-Broker-Activity-After-Long-Career-of-Suspicious-Activity-300x200A misunderstanding with FINRA’s rule caused LPL to ignore dozens of customer complaints. The firm incorrectly failed to file and/or update registered representatives U4 or U5 forms to disclose dozens of reportable customer complaints that should have been filed. These claims requested compensatory damages of $5,000 or more. A representative for FINRA stated, “LPL incorrectly construed this phrase to mean that the firm was not required to report any complaint that did not expressly request compensation, even when the customer alleged a sales practice violation that caused a loss of $5,000 or more, and the complaint, when viewed as a whole, made clear that the customer was seeking compensation.”   LPL has been the subject of multiple customer complaints frequently filed as securities arbitration claims, claiming significant damages.

LPL also failed to file suspicious activity reports related to its AML program. Because of inaccurate guidance in the firm’s internal processes, including a “fraud case chart,” employees failed to investigate unauthorized attempts to access customer accounts. More than 400 “hacking” attempts of customer accounts went unreported.

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Robert Edward White (CRD #3077959) is a former registered broker whose last employer was Raymond James Financial Services, Inc. (CRD #6694) of East Hampton, NY. His previous employer was 1st Global Capital Corp. (CRD #30349) of Dallas, TX. No current employment information is available. He has been in the industry since 1998.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/Broker-Sylvester-King-Jr.-Resigns-from-Wells-Fargo-Advisors-LLC-Concurrent-with-FINRA-Suspension1-300x200.jpgWhite was discharged from the Raymond James Financial Services on 4/3/2017 after it was discovered he had accepted cash gifts from a customer, and failed to disclose the gift to the firm. The firm’s policies prohibited registered representatives from accepting gifts over $100 per year from the firm’s customers. White accepted a total of $58,000 from a single firm customer, after certifying that he understood the policies on annual compliance questionnaires.

After an investigation, FINRA suspended White on 8/10/2018 for four months, effective 8/20/2018. White was also fined $10,000, and signed an Acceptance, Waiver & Consent (AWC) letter, agreeing to all sanctions. His suspension is scheduled to end on 12/19/2018. It is generally against a brokerage firm’s rules for a financial advisor to borrow money from a customer or otherwise accept cash gifts.

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Back in October, we told you about Kyusun Kim (CRD #2864085), a broker who was barred by FINRA after it was discovered he approached individuals who were near or at retirement age, and urged them to liquidate their pensions to invest in “alternative investments.” These investments included risky, non-traded real estate investment trusts (REITs.)

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224-300x224BrokerCheck now reports that Sandlapper Wealth Management, LLC has discharged him from their employment as of 8/31/2018 after he was barred by FINRA.

The allegations against Kim included wrongful conduct, breaches of fiduciary duty, contract and conduct, violations of securities laws, fraud, financial elder abuse, negligent misrepresentation, inappropriate investments and unsuitable recommendations, as well as one allegation of forged signatures.

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Mohamed Racheed Yassin (CRD #1673281) is a previously registered broker and investment advisor whose last employer was National Securities Corporation (CRD #7569) of Westbury, NY. His previous employers include Morgan Stanley (CRD #149777) of Garden City, NY, UBS Financial Services Inc. (CRD #8174) of Uniondale, NY and Prudential Securities Incorporated (CRD #7471) of New York, NY. He has been in the industry since 1990.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200-300x200Yassin is the subject of two FINRA disciplinary actions. The first, filed on 10/29/2018, suspends Yassin indefinitely for failure to comply with an arbitration award in a case of breach of promissory notes.

The earlier FINRA action on 8/21/2018 bars Yassin from any and all association with a FINRA member after he failed to respond to a request for information. FINRA then barred Yassin indefinitely from affiliation with any FINRA member effective 11/26/2018.

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Jeffrey Lance Offen (CRD #2893980) is a former registered broker whose last employer was Craft Capital Management LLC (CRD #171350) of Garden City, NY. His previous employers include Salomon Whitney Financial (CRD #145012) of Farmingdale, NY, Network 1 Financial Securities Inc. (CRD #13577) of Syosett, NY, and Laidlaw & Company (UK) LTD. (CRD #119037) of Melville, NY.

Failure-to-Adequately-Supervise-Prompts-FINRA-Suspension-of-Roman-Luckey-300x200Seven of Offen’s previous employers have been expelled from FINRA:

  • Obsidian Financial Group, LLC (CRD#:104255), Woodbury, NY, expelled on 10/16/2013
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According to FINRA Disciplinary actions for January 2019, the following individuals were barred from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:

NAME FORMER EMPLOYERS
  Balas, Tami   SCF Securities, Inc
  Klopp Agency
  Bustamante, Ricardo   JP Morgan Securities LLC
  Bustamante Family Legacy, LLC
  Coffey, Brian   National Financial Services LLC
  Fidelity Broker Services LLC
  Dulya, Rita   Kovak Securities Inc.
  Pro-Integrity Securities
  Evans, Makisha
  Feitelnerg, Brendan   United Planners Financial Services
  LPL Financial LLC
  Jimenez, Mario   Merrill Lynch, Pierce, Fenner & Smith Inc
  Bank of America
  Justafort, Frantz   JP Morgan Securities LLC
  Chase Investment Services
  Maddox, Nicholas   TCFG Wealth Management LLC
  US Bancorp Investments
  Gustavo Madrigal-Flores   JP Morgan Securities
  Miozzi, Scott   NYLife Securities LLC
  Newbanks, Scott   KMS Financial Services, Inc
  United Planners Financial Services
  Nichols, Viginia   LPL Financial LLC
  Merrill Lynch, Pierce, Fenner & Smith Inc
  Resciniti, Michael   Spartan Capital Securities, LLC
  First Standard Financial Company
  Sherry Jr., Zachary   NYLife Securities LLC
  NY Life Insurance Co
  Simonds, Christopher   Edward Jones
  Local Property LLC
  Tejeda, Divanna   JP Morgan Securities LLC
  Chase Investment Services
  Valenzuela, Francisco   Morgan Stanley
  Merrill Lynch, Pierce, Fenner & Smith Inc
 Wadsworth, Jackie   IMS Securities, Inc
  Retirement Investment Group
  Walker, Rick   Morgan Stanley
  Citigroup Global Markets Inc
  Walters, James II   Edward Jones
  Williams, Stephen   LPL Financial LLC
  Edward Jones
  Yassin, Mohamed   National Securities Corp
  Morgan Stanley

FINRA makes this information available, in part, to inform investors about potential red flags or problems with certain stockbrokers.  If you invested with anyone in this report and have questions about your legal rights, our attorneys will talk with you at no cost to explain your legal rights and about how we can help recover your investment losses through securities arbitration or litigation.

Silver Law Group represents investors in securities and investment fraud cases through FINRA arbitration or court.  Our lawyers are admitted to practice in New York and Florida and represent investors nationwide in securities arbitration to help recover investment losses due to stockbroker misconduct.  If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

 

 

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According to FINRA Disciplinary actions for January 2019, the following individuals were suspended from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:

NAME FORMER EMPLOYERS
  Alfaro, Jennifer   JP Morgan Securities LLC
  JP Morgan Chase Bank
  Austin, Aaron   LPL Financial LLC
  M&T Securities, Inc
  Austin, Phillip   JP Morgan Securities LLC
  Chase Investment Services Corp
  Bogdan, David   Fidelity Brokerage Services LLC
  Cash, Robert   JP Morgan Securities LLC
  Conner Youn
  Dass, Anukul   NY Life Securities LLC
  NY Life Insurance
  De La Mora, Rosalba   JP Morgan Securities
  Erhart, Peter   Ameriprise Financial Services, Inc
  IDS Life Insurance Company
  Ferraro, Andrew   State Farm VP Management
  Andrew Ferraro Insurance Agency
  Hafen, Herbert   Wells Fargo Clearing Services LLC
  Morgan Stanley
  Hamm, Brandon   Wells Fargo Clearing Services, LLC
  Haynes, Keith   LPL Financial LLC
  Community Trust Bank
  Jain, Anubhav   Goldman Sachs & Co LLC
  Deutsche Bank Securities
  Jefferson, Vladimir   Wells Fargo Securities LLC
  Century Park Capital Partners
   Jones, Marques   Bank of America
  Merrill Lynch, Pierce, Fenner & Smith
  Lastrapes, Lisa   Merrill Lynch, Pierce, Fenner & Smith
  USAA Financial Advisors
  Mak, Adrienne   JP Morgan Securities LLC
  Chase Investment Services
  Martin, Robert   JP Morgan Securities
  Scottrade, Inc
  McKinney, Roxana   Deutsche Bank Securities Inc
  Park Avenue Securites
  Merlo, Robert   Allstate Financial Services
  Pruco Securities
  Nickoli, Michael   AXA Advisors
  MML Investor Services
  Norris, Timothy   BMO Harris Financial Advisors
  Harrisdirect LLC
  Owen, Steven   PFS Investments Inc
  Ameriprise Financial Services
  Peskar,Denise   Pruco Securities, LLC
  The Prudential Insurance Co
  Pico, Marc   LPL Financial LLC
  MML Investors Services
  Renison, Thomas   Horace Mann Investors
  Northwestern Mutual Investment Services
  Shin, Jameson   LPL Financial
  Wells Fargo Advisors
  Smith, Michael   Farmers Financial Solutions
  Cornell, Stanley   Merrill Lynch, Pierce, Fenner & Smith
  Bank of America
  Stutzer, Wayne   RBC Capital Markets, LLC
  Sutro & Co Incorporated
  Tarica Jr., Perry   Wells Fargo Clearing Services
  A.G. Edwards & Sons
  Uribe, Juan   Wells Fargo Clearing LLC
  JP Morgan Securities

Silver Law Group represents investors in securities and investment fraud cases through FINRA arbitration or court.  Our lawyers are admitted to practice in New York and Florida and represent investors nationwide in securities arbitration to help recover investment losses due to stockbroker misconduct.  If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

 

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According to FINRA Disciplinary actions for January 2019, 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
  Ballard, Timothy   Securities Americva
  National Planning Corp
  Cunningham, Christopher   Fulcrum Securities
  Wells Fargo Advisors
  Montano, Roberto   Waddell & Reed
  US Bancorp Investments
  Plummer, Mark   Chestnut Exploration Partners
  Plummer Holdings
  Sanford, Christopher   Natwest Markets Securities
  Amherst Pierpont
  Vandyke, Victoria   Corinthian Partners
  Matrix USA LLC
  White, Harold   Willow Cove Investment Group
  R.W. Towt & Assoc
  Wilde, Maurice   Newbridge Securities Corp
  IFS Securities
  Wood, Stephen   UBS Financial Services Inc
  Morgan Stanley

Silver Law Group represents investors in securities and investment fraud cases through FINRA arbitration or court.  Our lawyers are admitted to practice in New York and Florida and represent investors nationwide in securities arbitration to help recover investment losses due to stockbroker misconduct.  If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Our lawyers have extensive experience collecting FINRA arbitration awards, prevailing on Motions to Vacate FINRA arbitration awards and using various collection efforts to enforce FINRA awards after they are received.

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Patrick Jermaine Phillips (CRD #4315963) is a former registered broker and investment advisor whose last employer was MSI Financial Services, Inc. (CRD #14251) of Chicago, IL. His previous employers include Citigroup Global Markets Inc. (CRD #7059), Ameriprise Financial Services, Inc. (CRD #6363) and Robert W. Baird & Co. Incorporated (CRD #8158), also of Chicago. He has been in the industry since 2001. No current employment information is available.

Morgan-Stanley-Discharges-and-FINRA-Permanently-Bars-Broker-Samuel-Wylie-Sloane-218x300On 6/8/2017, a customer filed a complaint against Robert W. Baird, attempting to recover $70,000 that Phillips borrowed from her during his employment and refused to repay. Philips borrowed the money without the knowledge of Baird and in violation of the firm’s policies.

On 8/3/2018, FINRA suspended Phillips after a disciplinary action, which included the unauthorized loan and violating the policies of member firm CGMI prohibiting the use of personal emails for business purposes. These emails prevented CGMI from seeing the emails regarding the loans, as required by the firm’s rules on recordkeeping. Additionally, in 2013, the client moved all of her accounts to CGMI so that Phillips could continue as her broker.

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