Stockbroker Misconduct

FINRA Bars James Lyons After Unauthorized Trading Allegations And Employment Discharge

January 25, 2019 | Silver Law Group

James Edward Lyons (CRD #1020397) is a former broker and investment advisor who was last registered with Raymond James & Associates, Inc. (CRD #705) of Shreveport, LA. He was previously employed by Morgan Keegan & Company, Inc. (CRD #4161), also of Shreveport, and Capitol Securities Group, Inc. (CRD #8094). No current employment information is available. He has been in the industry since 1981.

Lyons is the subject of a current customer dispute with multiple claimants alleging a number of complaints, including unauthorized trading, fraudulent concealment, overconcentration, unsuitability and others. The actions in question occurred between 2001 and 2017. The damages requested total $5,000,000. The case is currently pending.

A similar complaint was filed on 04/29/2016, with many of the same allegations from 2/17/2011 – 4/29/2016. The client alleges unauthorized trading, churning, fraudulent omissions, suitability, and securities law violations at both the federal and state (Louisiana) level. The client requested damages of $1,200,000, and the case was settled for $400,000.

FINRA Suspends Broker Bradley Pace

January 24, 2019 | Silver Law Group

Bradley Taylor Pace (CRD #2097427) is a previously registered broker whose last employer was LPL Financial LLC (CRD #6413) of Orlando, FL. His previous employers include A.J. Pace & Co., Inc. (CRD #24228), also of Orlando, TD Waterhouse Investor Services, Inc. (CRD #7870) of Omaha, NE, and Quick & Reilly, Inc. (CRD #11217) of New York, NY. No current employment information is available. He began in the industry in 1991.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 FINRA sent Pace a request for information, which he did not respond to by the requested deadline. FINRA then suspended Pace, indefinitely and in all capacities, effective 06/28/2018. Should Pace fail to request termination of his suspension within a 3-month time frame, he will be barred by FINRA from any association with any FINRA member firm. There is no indication of what prompted the request, or if any complaints were involved.

Pace is also the subject of a customer dispute, filed on 1/26/2018. In it, the customer alleged “unsuitability relating to the purchase of a REIT investment and misrepresentation relating to the liquidity of the REIT investment.” However, the claim was denied, and no additional information is available.

More Customer Complaints Against Sean Brady, Claims Of $12.5M In Damages

January 24, 2019 | Silver Law Group

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-300x200 Since 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:

FINRA Bans Charles Bloom

January 24, 2019 | Silver Law Group

Charles Lewis Bloom (CRD #4144108) is a former registered broker last employed by Chelsea Financial Services (CRD #47770) of Royal Palm Beach, FL. His previous employers include International Assets Advisory, LLC (CRD #10645) and IAA Financial LLC (CRD #6578) of West Palm Beach, FL, and U.S. Brokerage, Inc. (CRD #39307) of Wellington, FL. No current employment information is available. He has been in the industry since 2000.

FINRA began an investigation into Bloom’s trading practices in October of 2017 after allegations of unsuitable trading in at least three customer accounts. FINRA then requested Bloom to appear to give on-the-record testimony to FINRA regarding the investigation. He declined, and stated in a phone call that he would not give testimony at any time. On 7/17/2018, after signing an Acceptance, Waiver & Consent (AWC) letter, Bloom was indefinitely barred by FINRA effective immediately.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 Shortly after the FINRA action, a customer dispute was filed on 11/8/2017, alleging that Bloom misrepresented and made unsuitable recommendations with regard to a REIT (real estate investment trust.) The case is currently “pending,” and the damages requested are $99,326.84.

Client Accuses Broker Ralph Bianchi Of Recommending Unsuitable Puerto Rican Bonds

January 24, 2019 | Silver Law Group

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.com Ralph Adams Bianchi (CRD #1513063) is a previously registered broker whose last known employer was Wells Fargo Clearing Services, LLC (CRD #19616) of Flemington, NJ. His previous employers include The GMS Group, LLC (CRD #8000) of Livingston, NJ, and Moore & Schley, Cameron & Co. (CRD #6917). No current employment information is available. He began in the industry in 1986.

Bianchi has one disclosure on his record, a customer dispute filed on 01/19/2018. In it, the claimants allege that Bianchi made unsuitable investments in the Puerto Rican bond market. These recommendations were made between 2013 and 2017, when the Puerto Rico bond market found itself in a severe crisis. After the island was later devastated by Hurricane Maria, the financial market collapsed.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

FINRA Awards $1M To Client In Legend Securities Churning Arbitration Claim

January 23, 2019 | Silver Law Group

Zachary-Bader-Suspended-After-Multiple-Allegations-of-Churning-300x232 A man whose account was churned down to $10,000 was awarded both compensatory damages of $375,000 for his original investment plus an additional $700,000 in punitive damages. The client, Herbert W. Voss, was awarded $1.075 million by FINRA.

Mr. Voss’ attorney was quoted as saying that “It was like the Wild, Wild West in terms of lack of controls at the firm. It was unconscionable.”

Legend Securities, expelled by FINRA in April of 2017, was also known as Marlin Trading, Inc. and SPC Securities, Inc. The company’s record lists 32 disclosures. Many of these are similar to Mr. Voss as well as multiple fines and censures.

Broker Ralph Byer Of Merrill Lynch Has Seven Disclosures

January 22, 2019 | Silver Law Group

Ralph Michael Byer (CRD #1038411) is a registered broker and investment advisor currently employed with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) of Plantation, Florida, where he has been since 1982.

Churning-1024x683-300x200 Byer has a total of seven disclosures, all of them customer disputes. The most recent was filed on 06/19/2018, alleging “excessive trading, unsuitable investment recommendations and misrepresentation from 1990 until 2018.” This case is currently pending.

His next previous dispute, filed on 02/03/2014, alleged misrepresentation involving a life insurance policy purchased in June of 1987. This claim was denied. However, the next dispute, filed on 01/27/2009, was settled for $7,000. The client alleged “unsuitable investment recommendations,” and requested damages of $100,000.

FINRA Bars Andrew Mandell After Section 5 Violation Allegation

January 22, 2019 | Silver Law Group

Andrew Jason Mandell (CRD #194970) is a previously registered broker whose last employer was Network 1 Financial Securities Inc. (CRD #13577) of Oakland, CA. Previous employers include Olympus Securities, LLC (CRD #114050), Halcyon Cabot Partners, LTD. (CRD #32664, one of four previous employers expelled by FINRA, on 10/06/2015) and The Vertical Group (CRD #104353), all of New York, NY. No current employment information is available. He has been in the industry since 1992.

Abern-Barred-by-FINRA-for-Failing-to-Cooperate-200x300 Mandell is the subject of two regulatory disclosures, the most recent filed on 8/20/2018. FINRA sent a letter to Mandell asking him for on-the-record testimony in relation to a potential violation of Section 5 of the Securities Act of 1933, which regulates the timeline and distribution process for issuers who offer securities for sale. No specific details are included for this potential violation, but when Mandell declined to testify in the inquiry, he violated FINRA Rules 8210 and 2010. FINRA barred Mandell indefinitely, and in all capacities, effective 8/20/2018, and Mandell signed an Acceptance, Waiver & Consent (AWC) letter agreeing to the sanctions.

There is only one other disciplinary disclosure, filed on 11/29/1994 by the state of Hawaii’s Commissioner of Securities. According to the complaint, Mandell failed to register as a securities salesperson, and allegedly committed securities fraud. He signed the consent agreement and paid the $1,250 civil penalty, dismissing a preliminary order to cease and desist.

Ft. Lauderdale Elder Abuse Charges Against Roger Kroeger

January 22, 2019 | Silver Law Group

Roger Kroeger (CRD #1526864) is a former registered broker and investment advisor who was employed with Invest Financial Corporation (CRD #12984) of Fort Lauderdale, FL for 27 years. He was previously employed with Glenfed Brokerage Services (CRD #13648) of Glendale CA and Shearson Lehman Hutton Inc. (CRD #7506).

Although Kroeger still holds Series 7 and 63 licenses, he is not currently associated with a FINRA member firm. No current employment information is available. He has been in the industry since 1986.

6 Tips that Can Help Prevent Elder Fraud on silverlaw.com Kroeger has four disclosures in his record that appear to be for the same incident, with two filed on 11/17/2017. The first includes criminal charges for exploitation of the elderly for over $100,000, three counts of fraud, money laundering, and two counts of grand theft. The charges are currently listed as “pending.”

FINRA Bars Daniel Winger For Improper Use Of Customer Funds

January 22, 2019 | Silver Law Group

Daniel Noah Winger (CRD #1542674) is a former registered broker whose last employer was PFS Investments Inc. (CRD #10111) of Federal Way, WA. No current employment information is available. He began in the industry in 1986.

Three Individuals Charged by the SEC for Defrauding Elderly Clients on elderfinancialfraudattorneys.com Winger was discharged by PFS on 8/10/2018 after a customer alleged that he took checks from her and deposited them into his personal bank account.

A subsequent FINRA investigation dated 8/28/2018 found that the elderly customer gave him checks made out to “Dan Winger & Associates,” totaling $100,000. The customer was under the impression that the funds would be used for her benefit, including paying any commissions associated with her brokerage account, and for taxes that became due. However, Winger deposited those checks into his own bank account. Winger then spent the monies for his own personal use.