Investment Fraud

Protecting Alzheimer’s Patients from Financial Fraud

July 18, 2018 | Silver Law Group

Individuals suffering from Alzheimer’s can be prime targets for financial predators

Unfortunately, we become more susceptible to financial scams from a wide range of offenders as we age. These include trusted advisors such as lawyers, accountants, and financial managers – as well as healthcare providers, caregivers, and even close family members.

Recent studies show that as our brains age, we become less able to detect deception and focus more on the potential for positive outcomes, especially when it comes to trusting people in our own social environment.

Daniel Glick Gets 12 Years in Jail for Elder Financial Fraud

July 11, 2018 | Silver Law Group

He defrauded his clients – including his own in-laws – of more than $5 million

Former Chicago investment advisor Daniel Glick will be spending the next 12 years in federal prison. He received this sentence in April after being found guilty of using a Ponzi-like scheme to defraud several of his clients of $5.2 million.

From 2011 to 2017, it was revealed that Glick misappropriated funds through the three financial services and accounting firms he owned in Orland Park, Illinois: Glick & Associates Ltd., Glick Accounting Services Inc., and Financial Management Strategies, Inc.

FINRA Bars Broker John Greg Schmidt After Misappropriation Allegations

June 28, 2018 | Silver Law Group

John Greg Schmidt (CRD #708094) is a former registered stockbroker and investment advisor whose last known employer was Wells Fargo Advisors Financial Network, LLC (CRD #11025) in Dayton, OH. He is also known as “Greg Schmidt” or “John Gregory Schmidt.”

His previous employers include Stifel, Nicolaus & Company, Incorporated (CRD #793), also of Dayton, OH; First Union Securities, Inc. (CRD #19616) of St. Louis, MO; and First Union Capital Markets Corp. (CRD #6124) of Charlotte, NC. Schmidt began his industry career in 1980, but is not currently registered with any FINRA broker.

Schmidt is currently the subject of several disclosures:

Jeffrey Hawley and Wells Fargo

June 22, 2018 | Silver Law Group

A current client dispute relating to Jeffrey Hawley (CRD #1131302) has been filed against Wells Fargo. Hawley is a registered broker currently with Wells Fargo Clearing Services, LLC (CRD #19616). Hawley is also a registered investment advisor with the same company.

The customer dispute centers on Puerto Rican bonds, which were popular to sell to investors for their high returns. When the island declared bankruptcy in May of 2017, many investors accounts decreased dramatically.

The client alleges that Hawley recommended purchasing these bonds in 2012, and to “thereafter hold the bonds.” The case is currently listed as pending.

First Nationle Solution LLC, United RL Capital Services, and Percipience Global Corp. $102 Million Ponzi Scheme Attorneys

June 20, 2018 | Silver Law Group

The SEC has shut down a $102 Million Ponzi Scheme that was defrauding investors in several states. The complaint that was filed in federal district court in Manhattan charges Perry Santillo from Rochester, New York, Christopher Parris from Rochester, New York, Paul LaRocco from Ocala, Florida, John Piccarreto from San Antonio, Texas, and Thomas Brenner from Orville, Ohio. These brokers are said to have defrauded over 600 investors through sales of securities in issuers that they controlled including the following: First Nationle Solution LLC, United RL Capital Services, and Percipience Global Corp. If you or someone you know lost their investment by investing with one of these brokers and/or companies, then it is highly recommended to speak to an attorney in order to assess your potential legal options to recover your investment capital.

The SEC Allegations of Fraud

5 Common Financial Scams Aimed at Seniors

June 6, 2018 | Silver Law Group

Educate yourself so you can protect yourself or your loved ones

While the health of your senior loved ones might be the main thing you focus on, there are other areas you can’t ignore, such as their finances. Just as you want to ensure that they are safe when driving, traveling, etc., you need to do the same for their money.

Unfortunately, older people are preyed upon all the time by scammers and con artists, and research shows that due to diminished capacity or simply higher levels of trust, they often make for easier targets. Here are some of the most common schemes to know about:

Royal Alliance Associates Arbitration Lawyer

June 1, 2018 | Silver Law Group

The recent arrest of former broker Gary Basralian (CRD #14385) for defrauding two clients of $2.1 million also raises allegations of failure to supervise about his brokerage firm, Royal Alliance Associates (CRD #23131.) According to news reports, Basralian embezzled money from two elderly women and used the funds for his own expenses. When the discrepancies were discovered, the elderly victims’ attorney notified both the FBI and DOJ. Both agencies took immediate action, and Basralian was arrested May 23, 2018 on charges of wire and investment adviser fraud. He could face as much as 25 years in prison.

The stockbroker in question allegedly deliberately sought out vulnerable victims who might not notice that he was stealing funds directly from their accounts. Basralian is, himself, 70 years of age—so he likely embezzled from his contemporaries. When the law firm representing the two victims contacted Royal Alliance, Basralian was not immediately terminated, but allowed to resign. He signed a FINRA agreement and was barred from being a broker or affiliated with any broker firms.

But what about the brokerage firm, Royal Alliance, that failed to stop him? And why didn’t Royal Alliance notice or stop Basralian’s unethical activities over a ten-year period? Allegations against Royal Alliance in this case include inadequate supervision of brokers and lax anti-money laundering compliance that allowed this to not only happen, but continue. But this is not the first time Royal Alliance has been host to broker misbehavior, with several instances of “failure to supervise” kinds of sanctions.

Broker Gary Basralian Barred, Arrested After Allegations Of Using Client’s Moneys For His Own Expenses

June 1, 2018 | Silver Law Group

FINRA has barred former broker Gary Basralian (CRD# 14385) after allegations of stealing more than $2 million from two clients and using the money to pay his personal expenses. He is charged with two counts of wire fraud and one count of investment adviser fraud. His last employer was Royal Alliance Associates, Inc. (CRD# 23131) of Maplewood, NJ, from 11/19/1989 through 12/20/2017.

His previous employment record includes (locations not available):

Integrated Resources Equity Corporation (CRD# 6403), from 07/18/1984 through 11/19/1989

Centaurus Financial

June 1, 2018 | Silver Law Group

Centaurus Financial has been the recipient of multiple FINRA actions, including 11 regulatory events and 8 reported arbitration claims. Not all of these are major issues, but they could be relevant to an investor doing business with Centaurus.

The SEC has strict rules about how a broker-dealer operates, runs their business and keeps records; any variation from these rules can trigger a sanction or other regulatory process. Centaurus has been the subject of multiple sanctions for various infractions and disputes filed by customers. For these regulatory sanctions, the company has paid $532,156.62 in penalties, fines and fees over the years. In some cases, there were no financial products involved or sold, only regulatory violations.

Centaurus has paid out $3,064,930.66 in securities arbitration awards and judgments.

Silver Law Group is Investigating Lawrence Hagedorn of Ascend Financial Services, Inc.

May 31, 2018 | Silver Law Group

Lawrence Hagedorn is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity. Lawrence Hagedorn was registered with O.N. Equity Sales Company.

Contact Our Firm if You’ve Invested with Lawrence Hagedorn

If you invested with Lawrence Hagedorn and believe you have lost money due to his misconduct, you may be able to file a claim to recover your losses through FINRA arbitration. For a free evaluation of your potential case by as securities attorney, please contact Silver Law Group.