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Articles Posted in Negligence

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Barred advisor Aaron Parthemer, who had a practice in Florida that catered to NFL and NBA players, invested some of his clients' money in a Miami Beach nightclub that he partially owned. He also engaged in other activities that ultimately caught the attention of regulators. According to FINRA disciplinary records, he owned a tequila promotion business and sent gift baskets of the liquor to NFL and NBA teams. In 2015, FINRA barred Parthemer for engaging in outside business activities without firm approval. He allegedly loaned his clients $399,000 against firm policy, convinced eight clients to invest $3 million in private securities transactions, and provided false information to his employers and FINRA. Last year, the SEC penalized him $160,000.This is the latest case related to the conduct of barred advisor Aaron Parthemer, who had a practice in Florida that catered to NFL and NBA players.

Parthemer invested some of his clients’ money in a Miami Beach nightclub that he partially owned. He also engaged in other activities that ultimately caught the attention of regulators. According to FINRA disciplinary records, he owned a tequila promotion business and sent gift baskets of the liquor to NFL and NBA teams. Continue reading

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Boca-Raton-Financial-Advisor-Robert-Child-Faces-Yet-Another-Customer-Dispute-300x199Erik Patrick Pica (CRD #4829533) is a currently registered broker employed with Joseph Stone Capital L.L.C. (CRD #159744) of New York, NY. His previous employers include Global Arena Capital Corp (CRD #16871, expelled by FINRA on 4/1/2016), First Midwest Securities, Inc. (CRD #21786), Chicago Investment Group, LLC (CRD #11853, expelled by FINRA on 9/14/2010) and Eastbrook Capital Group LLC (CRD #39781, expelled by FINRA on 9/23/2009), all of New York City. He has been in the industry since 2004.

Pica is the subject of seven disclosures, all customer disputes. The first one was filed on 5/10/2018, alleging “unauthorized trade of 6000 shares Rite Aid Corp unauthorized trade of 550 shares Valeant Pharmaceutical.”  The client requests damages of $7,613.65. This case is currently pending.

The next customer dispute was filed on 5/4/2018, with allegations of negligence, over-concentration and suitability.” This client requests damages of $293,000. This case is also currently “pending.”

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Donna Jean Hines (CRD #4275542, aka “Donna Jean Atchison” or “Donna J. Hines”) is a registered broker and investment advisor who is currently employed with Cetera Advisors LLC (CRD #10299) of Weston, WV. Her previous employers include Investment Planners, Inc. (CRD #18557), also of Weston, WV, Sammons Securities Company, LLC (CRD #115368) of Ann Arbor, MI, and Edward Jones (CRD #250) of St. Louis, MO. She has been in the industry since 2000.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-300x200On 06/12/20018, a customer filed a dispute against Hines, alleging unsuitable investments from 2005 through 2018, negligence, common law fraud and other claims, and requested damages of $142,026.00. Hines responded that a motion to compel would be filed to bring the case to arbitration, and reasons why the claims were without basis.

Three previous customer disputes were filed on 12/21/2015, 12/24/2015 and 12/28/2015. The claimants were children of a deceased customer, who each inherited from the customer’s estate. The claims allege misrepresentation, omissions, negligence and breaches in regards to “alternative investment products” that Hines sold the customer. The damages requested were different for each case, but all three claims were settled for $100,000. Hines’ response was that the alternative investments were purchased more than ten years ago. The client passed away in 2011, and the claims were settled to avoid the cost and expense of litigation.

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Sebastian Wyczawski (CRD #2835135) is a registered broker currently employed with Joseph Stone Capital, LLC (CRD #159744) of Holbrook, NY. His previous employers include Cape Securities Inc. (CRD #7072), also of Holbrook,

Bahram-Mirhashemi-Facing-Allegations-of-Elder-Financial-Fraud-300x200Liberty Partners Financial Services, LLC (CRD #130390) of Mount Pleasant, SC, and Milestone Financial Services, Inc. (CRD #43295) of Bohemia, NY. His first employer, Seaboard Securities, Inc. (CRD #755) of Florham Park, NJ, was expelled by FINRA in 2011. He has been in the industry since 1998.

Wyczawski has a total of three disclosures, all customer disputes. The most recent was filed on 7/18/2018, alleging “fraud; negligent misrepresentation; breach of fiduciary duty and breach of the covenants of good faith and fair dealing; negligent supervision; breach of conduct; Section 20 violations.”  This customer is requesting damages in the amount of $100,000.00.

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In August, we told you about former broker Sean Brady (CRD #4365173) who was recently barred by FINRA and discharged by his employer, First Allied Securities, Inc. (CRD #32444) of St. Louis, MO.

Allegations-of-Sales-Practice-Violations-Cloud-Broker-Kenneth-Dlouhy-‘s-Record-300x200Since our last report, eight more customer disputes were recently filed against Brady, between 6/28/2018 and 07/03/2018. All these cases are pending, and the total of requested damages is an eye-watering $12,575,730.49.

Like the previous disclosures, these clients allege that Brady used the same practices, including:

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Ronald Harris Rothchild (CRD #4491932) is a registered broker and investment advisor currently employed with National Securities Corporation (CRD #7569 of Melville, NY.) His previous employers include Raymond James Financial Services, Inc. (CRD #6694) of Garden City, NY, Wells Fargo Advisors, LLC (CRD #19616) of Melville, NY, and David Lerner Associates, Inc. (CRD #5397) of Syosett, NY. He has been in the industry since 2002.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200Rothchild is the subject of eight disclosures, the most recent of which was a customer dispute filed on 7/30/2018. In it, the client alleges “breach of contract, negligence, unsuitability, breach of fiduciary duty.”  Damages requested are $100,000. This case is listed as “pending.”

Two previous customer disputes have been settled. The first, filed on 3/28/2018, alleges that from 7/26/2011 through 4/11/2016, Rothchild misrepresented certain investments that were unsuitable for her objectives. The client also alleges that her risk tolerance and investment objectives were incorrectly documented on her updated account paperwork.  This customer requested damages of $149,236.86, and the case was settled for $75,000.

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Recently, we told you about broker Thomas Kelly (CRD #2877415) whose disclosure include customer disputes that total over $1M in damages. Recently, another customer filed a dispute for another $500,000. He is currently employed with Aegis Capital (CRD #15007) of New York, NY.

Securities Arbitration Claims Against National Securities Corp. on silverlaw.comThe claim, filed on 11/1/2018, alleges “suitability, unauthorized trading, breach of fiduciary duty & negligence,” along with the request of $500,000 in damages. This new case is currently “pending,” and no other information is available.

Our securities arbitration attorneys represent victims of cold calls, excessive trading, churning and unsuitability.  National Securities Corp. is the subject of multiple arbitration claims for unsuitable investments and claims including private placements.

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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.comIn 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.

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George Mathis (CRD #4271854) has been employed with Raymond James & Associates since November 2011. Previous employment included Wells Fargo Advisors, LLC from January 2008 to November 2011, Wachovia Securities, LLC from January 2008 to May 2009 and A. G. Edwards & Sons, Inc. from November 2000 to January 2008.

According to the FINRA BrokerCheck, there have been complaints against George Mathis.

Allegations-of-Sales-Practice-Violations-Cloud-Broker-Kenneth-Dlouhy-‘s-Record-300x200In 2016 while employed by Raymond James & associates, Inc., Client alleges unsuitably, misrepresentation, omissions, breach of fiduciary duty, violations of NASD Conducts Rule 301(A), Conduct Rule 2010, FINRA Conduct Rule 2010, FINRA Rule 2111, Negligence, and breach of contract and vicarious liability. The activity date is 9/03/2013 through 1/28/2016. The complaint settled for $70,000.00.

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John Maloney (CRD #726108) has been employed by Woodbury Financial Services Inc. since June 2016. Maloney was previously employed by Edward Jones from January 1981 to June 2016.

According to the FINRA BrokerCheck, there have been several complaints against Mr. Maloney.

Timothy-DiBlasi-Under-FINRA-Scrutiny-for-Lack-of-Compliance-Supervision-300x200 In 2016 Claimants allege Mr. Maloney’s recommendations to purchase individual equities were unsuitable. The complaint settled for $132,500.

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