Misrepresentation and Omission of Material Facts

SEC Investigation Of Morgan Stanley And Puerto Rico Bond Investments

April 6, 2018 | Silver Law Group

When Hurricane Maria landed in Puerto Rico, it caused devastation to the island’s infrastructure, crops, homes and power grid that will take many years to repair. But the damages to Puerto Rico include losses in municipal bonds and the mutual funds that hold them, which were close to default even before the storm.

While the island still struggles to recover, it wasn’t the first catastrophic event to hit the island territory. In 2014, Puerto Rico was already headed for a severe financial crisis, with bond sales from Morgan Stanley brokers as the catalysts.

Morgan Stanley and Barclay’s were responsible for underwriting the island’s $3.5 billion sale in March 2014. This sale was the last major issue by Puerto Rico before declaring bankruptcy on May 3, 2017, for a debt restructuring amounting to $3.8 trillion. The island’s debt stood at $70 million, and it needed to restructure pensions of $49 million. This municipal bankruptcy was even bigger than the city of Detroit’s 2013 restructuring of $18 billion.

Silver Law Group is Investigating Christopher Bennett of Hilliard Lyons

March 6, 2018 | Silver Law Group

A Financial Industry Regulatory Authority (FINRA) arbitration panel awarded a customer of Christopher Bennett of Hillard Lyons damages of $445,000 after the claimant alleged Bennett engaged in breach of fiduciary duty, unauthorized trading, suitability, churning, misrepresentation, omission of facts, common law negligence, fraud, failure to supervise, common law negligent supervision and violation of Kentucky statutes, regulations and FINRA rules. The causes of action related to losses to the client’s qualified and non-qualified retirement accounts. The investor alleges Mr. Bennett executed transactions in her accounts without authorization, allocated her assets in an unsuitable manner for someone her age and with her investment objectives without discussing the risk associated with such re-allocation, and engaged in excessive trading in her accounts. A brokerage firm has a duty to supervise a stockbroker for compliance with the securities laws and internal firm rules and regulations.

Christopher Duke Bennett is currently registered with J.J.B. Hilliard, W.L. Lyons in Louisville, Kentucky, and has been since December 1995. He has six customer disputes against him, three of which are currently pending.

Contact Our Firm if You’ve Invested with Christopher Bennett

Silver Law Group is Investigating William Harrison of Stifel Nicolas & Company

March 5, 2018 | Silver Law Group

Stifel Nicolaus & Company broker/adviser William Harrison is involved in a pending customer dispute. William Harrison has spent 29 years in the securities industry and has been registered with Stifel Nicolaus & Company in Boca Raton, Florida since 2009. Palm Beach County is home to a large retirement community and FINRA arbitration claims are generally heard in FINRA’s Boca Raton office.

In January 2018, an arbitration claim was filed alleging William Harrison, while employed at Stifel Nicolaus & Company, committed common law fraud, negligently misrepresented material facts, breached his fiduciary duty, and acted negligently in connection to investments in common and preferred stock. The customer is seeking $100,000 in damages in the pending complaint.

Contact Our Firm if You’ve Invested with William Harrison

LJM Preservation and Growth Fund (LJMIX) Securities Lawsuit Investigation

February 13, 2018 | Silver Law Group

Silver Law Group is investigating investor claims for possible securities laws violations of LJM Preservation and Growth Fund (Stock Symbol: LJMIX).

The LJM Preservation and Growth Fund (“LJMIX”) is a mutual fund that is marketed and sold with the investment goal of preserving capital even in down markets. The mutual fund, allegedly, attempts to preserve its investors’ capital by using put option spreads as a form of mitigation risk.

The once-$800 million fund lost more than 80 percent of its value between February 2-7, 2018. On February 8, 2018, LJMIX announced that it would not be accepting new investments into the mutual fund. According to a letter published by the mutual fund, LJMIX liquidated all its open positions and the mutual fund currently only holds cash.

Silver Law Group is Investigating Claims Against Florida-Based Merrill Lynch Broker James Lowther for Unsuitable Investments And Misrepresentation

January 9, 2018 | Silver Law Group

James B. Lowther

CRD#5854504

Silver Law Group is investigating Sarasota, Florida-based Merrill Lynch broker James B. Lowther following a customer complaint alleging unsuitable investment recommendations and misrepresenting an investment opportunity.

Alabama-based Principal Securities Broker Bettye Hay Under Investigation For Unsuitable Investment Recommendations and Misrepresenting an Investment Opportunity

January 9, 2018 | Silver Law Group

Bettye C. Hays

CRD#1307813

Silver Law Group is investigating former Mobile, Alabama-based Principal Securities broker Bettye Hays following a customer complaint alleging unsuitable investment recommendations and misrepresenting an investment opportunity.

Utah-based Ameriprise Broker Kim Isaacson Under Investigation For Fraudulent Misrepresentation & Unauthorized Trading

January 9, 2018 | Silver Law Group

Kim D. Isaacson

CRD#855618

Silver Law Group is investigating former Midvale, Utah based Ameriprise Financial Services, Inc broker Kim D. Isaacson after FINRA received a complaint of fraudulent misrepresentation, omission of material facts and unauthorized trading

Chicago-based National Securities Corporation Broker Rick Konecny Under Investigation For Overconcentration and Unsuitable Investment Recommendations

January 9, 2018 | Silver Law Group

Rick D. Konecny

CRD#1727785

Silver Law Group is investigating former Chicago, Illinois-based National Securities Corporation broker Rick Konecny, after multiple customer allegations of misrepresentation, unsuitable recommendations and overconcentration were received by FINRA.

Silver Law Group Investigates Ernest Julius Romer and CoreCap for Misrepresentation & Unsuitability

January 9, 2018 | Silver Law Group

Ernest Julius Romer

CRD#2311741

Silver Law Group is investigating Sterling Heights, Michigan-based CoreCap broker Ernest J. Romer, after customer allegations of misrepresentation and unsuitable recommendations where received by FINRA and he was subsequently permanently barred from the industry.

Roger Kroeger, Invest Financial Corporation: Misappropriated customers funds

December 14, 2017 | Silver Law Group

The Silver Law Group and the Law Firm of David Chase have announced their joint investigation into allegations that Fort Lauderdale, Florida based Invest Financial Corporation broker Roger Kroeger made improper loans from a customer account to a family members and/or misappropriated customers funds. Invest Financial Corporation terminated Kroeger on November 17, 2017, on the grounds that: “Representative admitted to facilitating a loan to his sister from a senior client, and was subsequently charged with multiple felony offenses in connection with these circumstances.”

The Sun Sentinel recently reported that Kroeger is facing state criminal charges arising out of his handling of this elderly customer’s brokerage account. The criminal charges include: exploitation of the elderly, grand theft and money laundering.

Securities brokerage firms are legally responsible for supervising the activities of their stock brokers and financial advisors, and can be held liable for their wrongful conduct, including misappropriation of customer funds.