Stockbroker Misconduct

Walter Valenzuela Subject Of Two Multimillion-Dollar Customer Disputes

January 30, 2019 | Silver Law Group

Walter Roland Valenzuela (CRD #2280224) is a registered broker and investment advisor currently employed with Hilltop Securities Inc. (CRD #6220) of Del Mar, CA. His only previous employer was M.L. Stern & Co., LLC. (CRD #8327) of San Diego, CA, where he worked until 2008. He has been in the industry since 1993.

Valenzuela is the subject of seven disclosures, all customer disputes. The most recent dispute was filed on 7/23/20018. Alleging unsuitable recommendations, misrepresentation and excessive trading, the client is requesting damages of $3,000,000. This case is “pending,” and no additional information is available.

Three Individuals Charged by the SEC for Defrauding Elderly Clients on elderfinancialfraudattorneys.com Another still-pending dispute was filed on 8/24/2017, and will be in securities arbitration. The client lists multiple allegations, including elder abuse, financial exploitation, breach of fiduciary duty, excessive trading and misrepresentation. The damages requested are listed at $9,500,000.00. However the claim has no damage amount listed, and the final sum will be determined in arbitration.

Robin Wahby

January 30, 2019 | Silver Law Group

Robin Michelle Wahby (CRD #2107629, aka, Robin Michelle Griswold) is a registered broker and investment advisor currently employed with NYLIFE Securities LLC (CRD #5167) of Jacksonville Beach, FL. She has been with NYLIFE since beginning in the industry in 1990.

FINRA-Permanently-Bars-Barry-Hartman-From-Securities-Activity-for-Alleged-“Selling-Away”-Activities-300x209 Wahby has one disclosure in her record, filed on 6/12/018. A client who invested in Future Income Payments, LLC (“FIP”) on Wahby’s recommendation, filed this customer dispute. This investment was supposed to provide the client with a guaranteed fixed amount and protect the client’s investments. However, the client alleges, she has received no income and her funds were no longer available. The client requested damages of $39,460.00 and the case was settled for $40,000.

Future Income Payments and other high yield investments which claim not to be correlated to stock market returns have been the subject of many arbitration claims. Investors generally do not appreciate the reasons why an investment may not appear on a monthly statement and some stockbrokers may be “selling away” from their firm.

Scott Silver Discusses $102 Million Ponzi Scheme (with video)

January 30, 2019 | Silver Law Group

Back in June, we told you about five former brokers charged by the SEC when the agency shut down their Ponzi scheme worth $102 million.

What-Keeps-a-Ponzi-Scheme-Running-300x200 Scott Silver recently spoke with Jennifer Cefalu of WHEC News in Rochester, NY, where two of the suspects lived and the scheme originated. The scheme was run by Perry Santillo, Jr. and Chris Parris, with Santillo headlining.

Santillo, Parris and three others recruited their investors by word of mouth, after buying client lists from brokers. Ultimately, 637 people were defrauded, many in the Rochester area. The entities they represented were not registered with any federal agency like the SEC or FINRA, nor were any of them registered brokers or investment advisors.

Sebastian Wyczawski Subject To Two Disclosures Totaling $350K

January 29, 2019 | Silver Law Group

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-300x200 Liberty 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.

FINRA Suspends, Fines Broker Ian Greenblatt For Selling Away

January 28, 2019 | Silver Law Group

Ian Greenblatt (CRD #2276966, aka “Eric Green”) is a registered broker currently employed with Capitol Securities Management, Inc. (CRD #14169) of Melville, NY. His previous employers include Capitol Securities & Associates, Inc. (CRD #7278), Westrock Advisors, Inc. (CRD #114338, expelled by FINRA on 1/18/2011), both of Melville, NY and Weatherly Securities Corporation (CRD #11081), of New York, NY. He has been in the industry since 1992.

FINRA-Permanently-Bars-Barry-Hartman-From-Securities-Activity-for-Alleged-“Selling-Away”-Activities-300x209 FINRA recently suspended Greenblatt for 30 days after he attempted to settle a customer complaint away from the firm in March 2016. After two of his customers complained about the firm and the loss of $170,000 from their brokerage account, he failed to discuss this complaint with his firm. Greenblatt visited these customers and gave them $4,000 in cash and a check for $46,000 to their son, who is not a firm customer nor one of Greenblatt’s.

During the meeting, they allegedly discussed re-investing their funds to try and recover the losses they suffered with the firm by depositing the money with CSMI’s clearing firm. Unfortunately, Greenblatt was not able to recover their losses, and the customers filed for arbitration against Greenblatt in August of 2017.

Broker Stephen Williams Subject Of 7 Customer Disputes

January 25, 2019 | Silver Law Group

Stephen Joe Williams (CRD #2395948) is a registered broker and investment advisor currently employed by NEXT FINANCIAL GROUP, INC. (CRD #46214) of Madison, AL, since 2007. His previous employers are Securities Service Network, Inc. (CRD #13318) of Huntsville, AL, Raymond James Financial Services, Inc. (CRD #6694) of St. Petersburg, FL, and Edward Jones (CRD #250) of St. Louis, MO. He has been in the industry since 1994.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 Williams’ most current customer dispute is pending, and was filed on 2/26/2018. The case centers on allegations that during June of 2008, Williams recommended non-traded REITS (real estate investment trusts) and didn’t disclose the nature and risks of these kinds of private securities. The customer is requesting damages of $350,000.

On 2/2/2018, another customer’s attorney filed a similar allegation with a 2008 time frame. Williams allegedly solicited the client to invest $50,000 in UDF III without informing him of the inherent risks of this illiquid investment. Although the customer requested remediation of $50,000, the dispute was denied.

Sharing Customer Losses Leads To FINRA Suspension For Raymond Menna

January 25, 2019 | Silver Law Group

Raymond Adam Menna (CRD #1918097) is a registered broker and investment advisor currently employed with Planmember Securities Corporation (CRD #11869) of Farmingville, NY. His previous employers include Prime Capital Services, Inc. (CRD #18334) and Mutual Capital Corp. (CRD #106813), both of Ronkonkoma, NY. He has been in the industry since 1989.

Menna has a total of three disclosures, one regulatory and two customer disputes.

On 11/17/2017, a customer filed a dispute alleging that Menna engaged in unauthorized trading, unsuitable investing, misrepresentation and material omissions, and requested damages of $1,000,000. All parties agreed to a settlement of $260,000.00 to avoid the associated costs of litigation. The agreement included stipulations that there was no admission or denial of the charges, and all allegations were denied.

FINRA Suspends Broker Patrick Phillips After Allegedly Borrowing $70K From Client

January 25, 2019 | Silver Law Group

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-218x300 On 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.

Florida Broker Mitchell Walk Subject Of Five Customer Disputes

January 25, 2019 | Silver Law Group

Mitchell Brian Walk (CRD #3195375) is a currently registered broker and investment advisor. He has been employed by Kestra Investment Services, LLC (CRD #42046) of Longwood, FL since 2001. He was previously employed by Securities America, Inc. (CRD #10205) of Lavista, NE. He has been in the industry since 2000.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-300x200 Walk has five disclosures, all customer disputes in different stages. The most recent was filed on 08/14/2017, alleging that Walk made unsuitable recommendations to the client, and that Kestra Investment Services didn’t properly supervise those recommendations. The client is requesting damages of $72,000. The case is currently pending.

His next disclosure is also a pending customer dispute, filed on 10/4/2016. Walk is accused of misrepresentations in his recommendations (as well as other actions) in the sale of numerous alternative investment vehicles in August of 2014. This customer is requesting damages of $350,000.

FINRA Suspends Broker Lloyd Johnston Over Information Request And Multiple Tax Liens

January 25, 2019 | Silver Law Group

Lloyd Mark Johnston (CRD #1626695) is a previously registered broker and investment advisor who was last employed with Capital Financial Services, Inc. (CRD #8408) of Spokane, WA. He was previously employed with Legacy Financial Services, Inc. (CRD #38697) of Clinton, MD., Investors Capital Corp. (CRD #30613) of Lynnfield, MA, and Intersecurities, Inc. (CRD #16164) of St. Petersburg, FL. No current employment information is available. He has been in the industry since 1987.

Failure-to-Adequately-Supervise-Prompts-FINRA-Suspension-of-Roman-Luckey-300x200 FINRA suspended Johnston on 06/25/2018 indefinitely after he failed to respond to a request for information. The suspension will continue until he provides the requested information. Should Johnson decline to provide this information, continue not responding or fail to request termination of his suspension, the suspension will be converted to a bar. FINRA began its investigation on 02/08/2018.

Johnston was discharged from Capital Financial Services on 05/14/2018 for failing to disclose “reportable events” on his U4. While the reportable events were not described, BrokerCheck lists a total of 15 tax liens in his disclosures dating back to 2000.