Investment Fraud

Published on: January 17, 2019

FINRA Bars Broker Jackie Wadsworth

Jackie Divono Wadsworth (CRD #2342163) is a former registered broker and currently registered investment advisor whose last employer was IMS SECURITIES, INC. (CRD #35567) of Houston, TX. She worked for IMS since 1994, and the firm was expelled by FINRA on 9/04/2018. Previously, she worked for Retirement Investment Group (CRD #7421), also of Houston. She has been in the industry since 1993.

National Securities Corporation: Frequent Customer Disputes with FINRA on silverlaw.com In 2017, Wadsworth was involved in a customer dispute involving multiple claimants while at IMS Securities. In it, the claimants alleged that “a non-party under the supervision of Respondents induced Claimants to invest in unsuitable, high-risk, illiquid investments, including United Mortgage Trust (“UMT”), United Development Funding II (“UDF II”), and United Development Funding III (“UDF III”).” These allegations also included “aiding and abetting fraud, aiding and abetting breach of fiduciary duty, civil conspiracy, civil RICO, civil RICO conspiracy, and negligent supervision.” Filed on 6/7/2017, the arbitration was completed on 11/8/2018, awarding a total of $963,836.00 to the claimants.

Following this award, Wadsworth failed to respond to an information request from FINRA, causing a suspension on 8/3/2018. She did not request her suspension to be terminated, and is now barred from any association in any capacity with any FINRA member.

Published on: January 16, 2019

FINRA Bars Ft. Lauderdale Broker Shakela Carter

by Silver Law Group

Shakela Yashika Carter (CRD #4321231) is a former registered broker and investment advisor who was last employed with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) of Fort Lauderdale, FL. Before becoming licensed, she was employed with Bank of America and Capital Strategies, also of Fort Lauderdale. She started in the industry in 2000, becoming a licensed broker in 2009. No current employment information is available, and she is not currently affiliated with any FINRA member firm.

Older Americans Face Exploitation and Financial Abuse in Record Numbers on elderfinancialfraudattorneys.com Carter voluntarily resigned from Merrill Lynch on 2/8/2016, after she was under internal review by the firm for “fraud, wrongful taking of property, or violating investment-related statutes, regulations, rules or industry standards of conduct.” An amended Form U5 added that Carter had participated in outside business activities with a client or clients. Subsequent amended forms indicated that Carter assisted a client with an outside credit agreement and an outside investment arrangement with due diligence.

FINRA’s Enforcement division began an investigation on June of 2016 into the allegations against Carter. FINRA requested on-the-record testimony from Carter in regards to the investigation, and sent multiple notifications to her last known address of record. On 11/29/2017, Carter emailed FINRA staff and notified them that she was no longer interested in working in the industry, and would not testify at any time. She then failed to appear on December 20, 2017 or on January 8, 2018 as requested to provide testimony.

Published on: December 6, 2018

Commodities Fraud Attorneys Pursue INTL FCStone for OptionSellers.Com Investors

by Silver Law Group

iStock-476534078-300x231 Silver Law Group has been retained by investors to pursue claims against INTL FCStone for losses related to OptionSellers.Com. Our clients allege that OptionSellers.Com used a web of deceptive marketing materials, misrepresentation and deception to promote a speculative trading strategy which resulted in devastating losses. INTL FCStone allegedly allowed OptionSellers.Com to trade customer accounts including IRA accounts on margin or purchase naked options which caused losses greater than their principal investment. Further allegations relate to FCStone’s knowledge of OptionSellers’ activities and misrepresentations.

In late November 2018, OptionSellers.Com and INTL FCStone informed investors that despite previous representations regarding the safety and security of their investments, many investors had lost almost all of their investment and many investors owed additional margin calls. James Cordier has offered his victims a video apology, but many investors are shocked to learn about his regulatory history and lack of institutional knowledge regarding options trading.

Our Experienced Commodities Fraud Attorneys

Published on: November 21, 2018

OptionSellers.Com Suffers Losses After Natural Gas Declines

by Silver Law Group

It seemed like a great investment, in natural gas. But like many energy-based investments, there is a considerable volatility involved that’s an uncontrollable variable. In other words, you never know what may happen tomorrow, especially when trading options or using leverage.

Natural gas posted its biggest one-day percentage gain on November 14. The next day, it posted its largest one-day drop in 15 years. According to news stories, OptionSellers.com was betting that natural gas would continue to rise. When it didn’t, everything unraveled, and the company was forced to begin liquidation. Many investors borrowed through margin accounts, some with considerable amounts invested.

Margin-Account-Guidelines-300x200 Tampa, FL-based OptionSellers.com was a commodities trading firm that claimed to be experienced in this type of investment. The firm’s president and head trader, James Cordier, told a recent interviewer, “Our goal is to take an aggressive vehicle and manage it conservatively.” Unfortunately, that’s not exactly what happened. Trading “naked” on margin instead of “covered,” the firm left its investors vulnerable to unlimited exposure, leading to the losses. An article explains that “OptionSellers.com and its principals negligently engaged in a risky trading strategy that was unsuitable for its clients and breached its fiduciary duties to them by putting its interests ahead of its clients.”

Published on: November 2, 2018

SEC Suspends Pot Stock Advanced Cannabis Solutions/General Cannabis

by Silver Law Group

General Cannabis, formerly known as Advanced Cannabis Solutions, is a service provider based in Denver, CO, that provides consulting and assistance to cannabis-related companies for production, cultivation and retail operations. (The company does not actually grow crops.)

Like any company offering securities for sale, Advanced Cannabis was required to supply certain types of company information. It was listed on both the OTC Bulletin Board and OTC Link, “alternative stock exchanges” to the NYSE and NASDAQ.

Any company that trades securities on these platforms have to meet strict requirements and qualifications, and are required to answer to a regulating agency such as the SEC or the FDIC. Securities are traded directly by dealers. Penny stocks, shell companies, or in bankruptcy are not traded here.

Published on: September 11, 2018

Securities Arbitration Lawyer v. a Non-Attorney Representative?

by Silver Law Group

If you’ve been investing for even a short while, you may have been contacted by someone claiming that you were “cheated” out of money or otherwise wronged by your broker. This company can help you get your money back that you are rightfully entitled to, they say.

Non-attorney representatives have been the subject of numerous recent news stories about how they fail to adequately represent investors in arbitration.

If you were to work with a law firm like Silver Law Group, you would be entering into a payment agreement commonly known as a “contingency fee arrangement.” In other words, your legal fee would be contingent on representing you, and winning your case. You would generally have no out-of-pocket expenses. A percentage of your settlement would be the fee you pay for the work on your case.

Published on: September 5, 2018

Some of National Securities Corporation’s FINRA-Reported Brokers

by Silver Law Group

These five brokers have been accused of numerous infractions

National Securities Corporation has been operating for decades and has offices and brokers all over the U.S. Unfortunately, however, a significant percentage of their brokers have been involved in numerous customer complaints. Here are just a few examples of how National Securities employees have allegedly violated FINRA rules:

Mark Kolta

Published on: August 15, 2018

Securities Arbitration Claims Against National Securities Corp.

by 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.

Published on: August 10, 2018

Colorado Investigates California-Based Peter Klaas For High Risk Trading, Seeking License Revocation

by Silver Law Group

Peter Gerhard Klaas (CRD #2381681) is a former broker and investment advisor, and was employed at El Segundo, CA-based Cetera Advisor Networks since 05/2017. Klaas was previously employed with Allegis Investment Services (05/2014-03/2017,) Signator Financial Services (04/2011-06/2014), and LPL Financial (09-2007-05/2011.) No current employment information is available.

David-Levy-of-Titus-Rockefeller-LLC-Permanently-Barred-from-Broker-Activity-After-Long-Career-of-Suspicious-Activity-300x200 The Colorado Division of Securities is currently investigating broker Klaas along with broker Heath Bowen (CRD #4824684) for putting advisory clients in high-risk and complex option trades that these clients didn’t understand. CDS is not requesting monetary damages in this pending investigation, but is asking for the revocation of Klaas’ licensure. This investigation began while Klaas was employed with Allegis.

Cetera notified Klaas that he was subject to disqualification stemming from the Consent Cease and Desist Order dated March 12, 2018 filed by the Securities Commissioner of Colorado. On 4/18/2018, Klaas resigned from Centera.

Published on: August 9, 2018

1st Global Capital Bankruptcy Affects Investors in Knoxville, TN

by Silver Law Group

Do you live in Knoxville, Tennessee? Have you invested or lost money with 1^st Global Capital?

iStock-494312894-300x200 1^st Global Capital has recently filed for Chapter 11 Bankruptcy after investigations alleging sales of unregistered securities, sales of securities by unregistered brokers, and other acts of fraud in connection with the sales of securities. Several state attorney generals are also investigating the solicitation of multiple individuals into investing in MCA deals.

The alleged loan fraud totals $283 million.