Stockbroker Misconduct

Kari Bracy

November 29, 2018 | Silver Law Group

Kari Marlin Bracy (aka Kari Marlin Farwell, CRD #5656186) is a registered broker employed by NYLIFE Securities LLC (CRD #5167) of Jacksonville, FL. She has been in the industry since 2009, and only with NYLIFE.

iStock-154012464-300x225 Bracy is the subject of one disclosure, filed on 7/31/2018. In it, the client claims that when she invested in Future Income Payments, LLC in December of 2017, Bracy misrepresented this as a safe, conservative investment with a 7.5% annual return for ten (10) years. The client is requesting damages of $142,697.27. Bracy denies the allegations.

Future Income Payments, LLP (FIP) is the subject of a complaint filed by the Bureau of Consumer Financial Protection (BCFP). Filed in the Central District of California, the complaint alleges that the defendants violated the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5536(a)(1)(B), by expressing to consumers that their “pension-advance products” were not loans and not subject to interest rates. The company also claimed that they were comparable to or cheaper than credit card rates. These “purchases” were, indeed, actually very high-interest loans. The company has since shut down, stopped making payments, and the owner, Scott Kohn, is now unavailable. These loans were sold through intermediaries primarily in the Los Angeles, Houston, Chicago, northern Florida and Philadelphia areas.

Broker Dominick Diorio Charged With Unauthorized Trading

November 21, 2018 | Silver Law Group

Dominick Joseph Diorio, Jr. (CRD #2447817) is a registered broker currently employed with Aegis Capital Corp. (CRD #15007) of Melville, NY. He was previously employed with Global Arena Capital Corp (CRD #16871) of New York, NY, Prestige Financial Center, Inc. (CRD #30407), also of Melville, and S.W. Bach & Company (CRD #43522), of Port Washington, NY. Five of his previous employers have been expelled by FINRA. He has been in the industry since 1995.

Be on the Lookout: 3 Common Signs of an Investment Scam on elderfinancialfraudattorneys.com Diorio is the subject of four disclosures, the most recent filed on 2/12/2018. In it, the client alleges “unauthorized trading and unsuitable investment recommendations,” and requests damages of $769,690.00. Diorio steadfastly denies the charges. This case is currently pending.

A previous customer dispute filed on 9/29/2017 has similar allegations of an “unsuitable investment strategy” during the period of December 2012 through July of 2017. Diorio also denies the allegations, and explained reasons why the case wasn’t valid including the investment savvy of the customer. On the advice of counsel, Diorio and the firm settled this claim for a total of $837,500.00 instead of risking higher damages and expenses on a hearing and possibly a trial.

Craig Bonn Subject Of Excessive Trading Allegations

November 21, 2018 | Silver Law Group

Craig Aaron Bonn (CRD #2280460) is a currently registered FINRA broker employed with National Securities Corporation (CRD #7569) of New York, NY. He was previously registered with Laidlaw & Company (UK) LTD. (CRD #119037) and Sands Brothers & Co., LTD. (CRD #26816), both also of New York, NY. He has been in the industry since 1993.

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.com Bonn is currently the subject of a customer dispute filed on 8/29/2018 that alleges unsuitability and excessive trading from 2008 through 2016. The client has requested damages of $228,128.47. Bonn denies the claims of wrongdoing made in this dispute.

Previously, Bonn was accused of making “unsuitable recommendations” for a client from 2006 through 2012 in a dispute filed on 1/17/2014. The client requested $800,000 in damages, and the firm settled for $325,000. Bonn was “dismissed and discharged” from this case, and the company settled without any input or contribution from him.

Silver Law Group is Investigating Former Broker James T. Flynn

November 5, 2018 | Silver Law Group

According to Flynn’s FINRA BrokerCheck report, he was based out of the Greenville, South Carolina branches of IFS Securities and Voya Financial Advisors. After he failed to respond to a FINRA inquiry that followed approximately 17 disclosures and two employment terminations within one year, he was permanently barred in June 2018.

Flynn has a total of 22 disclosures on his FINRA BrokerCheck report, including his banishment from the securities industry.

Upon information and belief, Flynn primarily sold his customers non-traded REITs and other illiquid investments including the Philllip Edison REIT and The Business Development Corporation of America.

Robert Ginsberg, Woodbury Financial, Subject of Two Suitability Claims

November 2, 2018 | Silver Law Group

Robert Scott Ginsberg (CRD #5177531) is a registered broker and investment advisor currently employed with Woodbury Financial Services, Inc. (CRD #421) of Wallingford, CT. He was previously employed by Investors Capital Corp. (CRD #30613), also of Wallingford. He has been in the industry since 2008.

Scottsdale-Capital-Advisors-Awaiting-FINRA-Disciplinary-Action-After-Alleged-Scheme-300x200 Ginsberg is the subject of two disclosures in his record. Both are customer disputes filed in 2017, and are currently pending.

The first was filed on 12/07/2017, alleging “suitability.” No damages are listed, and no other information is available.

FINRA Suspends Francisco Faraco For Forging Signatures

November 2, 2018 | Silver Law Group

Francisco Jose Faraco (CRD #5095972) is a former registered broker and investment advisor whose last employer was Morgan Stanley (CRD #149777) of New York, NY. His previous employers include J.P. Morgan Securities LLC (CRD #79), also of New York, NY, Santander Securities (CRD #41791) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) both of Miami, FL. No other employment information is available, and he is not currently registered with any FINRA member firm. He has been in the industry since 2006.

FINRA-Permanently-Bars-Broker-Richard-McGuire-for-Taking-Funds-and-Forging-Signatures-300x200 Faraco is the subject of three disclosures. Two are for one specific incident.

In January of 2016, Faraco allegedly began assisting an institutional customer obtain a $15M loan from Morgan Stanley Private Bank. In the course of applying, he attempted to keep the process moving after two roadblocks—an expired passport for one individual, and forging two signatures on two assurance documents for collateral. Faraco felt the documents were duplicates. Those signatures were representatives of affiliated companies. The bank approved the loan, and the forgeries were discovered only after one of the affiliates complained.

FINRA Bars Broker Kyusun Kim After Multiple Customer Complaints Of Unsuitability

October 12, 2018 | Silver Law Group

Kyusun Kim (CRD #2864085) is a registered investment advisor and previously registered broker, last employed and registered with Sandlapper Securities, LLC, of San Diego, CA. (He is also known as “Kyu Sun Kim” or “Kenny Kim.”) Kim’s previous employers include Independent Financial Group, LLC (CRD #7717), Lincoln Financial Advisors Corporation (CRD #3978), both also of San Diego, and The Lincoln National Life Insurance Company (CRD #2580) of Fort Wayne, IN. He began in the industry in 1997.

Kim is the subject of 23 customer disputes dating back to 2007. One dispute was denied; nine are pending, and the remaining thirteen are settled, with one settlement rescinded. The total for Kim’s twelve settled cases is $2,995,443. His nine pending complaints include requested damages totaling $2,950,000.

New Jersey Broker Richard Grant Cody May Be Facing Serious Penalties on elderfinancialfraudattorneys.com Between 2008 and 2015, Kim was accused of soliciting the business of individuals who were retired or near retirement age, and recommended that they liquidate their pension plans and 401(k) to invest with him in so-called “alternative investments,” including things like non-traded real estate investment trusts (REITs.) Many of these customers had little or no investment experience, and were unfamiliar with these types of securities. The higher risk involved made them inconsistent with the more conservative objectives. Kim failed to disclose the extra risk involved in many of these securities, and most suffered substantial financial losses.

SEC Charges Broker Jovannie Aquino

October 11, 2018 | Silver Law Group

Jovannie Aquino (CRD #4876661, aka John Aquino) is a former registered broker of New York, NY. Previous employers include Windsor Street Capital (CRD #34171), also in New York City, John Carris Investments LLC (CRD #145767), John Thomas Financial (CRD #40982) and Hallmark Investments, Inc. (CRD #135003) of New York City.

Aquino has worked for a total of 12 brokerages, holds Series 7 and 63 licenses and began working in the industry in 2004. Aquino has two LinkedIn pages that do appear to be updated, and no current employment information is available.

SEC Announces Charges in Massive Telemarketing Boiler Room Scheme Targeting Seniors on elderfinancialfraudattorneys.com On September 7, 2018, the SEC charged Aquino with defrauding customers by engaging in “churning” to generate excessive commissions for himself, in the amount of $930,000. Aquino’s customers lost a total of $881,000. At the time of these allegations, May 2014 through November 2017, Aquino was registered with Meyers Associates, L.P. (now known as Windsor Street Capital.) The SEC complaint also states that in 2015 and 2016, Aquino and an unnamed colleague engaged in cold-calling leads acquired from a publicly available database.

SEC Charges Broker Emil Botvinnik With Excessive Trading, Churning

October 11, 2018 | Silver Law Group

If you watch your brokerage account regularly, you’ll see the various trades and charges that go along with them. But if you’re seeing transactions that you don’t recall authorizing, and you’re spending a lot more money for fees, commissions and other related charges, it’s time to ask questions. Our South Florida FINRA arbitration attorneys can answer those questions.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200 Broker Emil Bottvinnik (CRD #4359481) has been charged by the SEC with doing just that very thing. On September 7, 2018, the SEC charged Botvinnik with excessive trading and “churning,” or frequent, short-term trading. This kind of quick-turnover trading paid more in commissions that a client would make from his or her investment.

The SEC alleges that Bottvinnik opened accounts for at least five individuals, and concealed information about what they would be charged for these frequent tradings. Many of these customers were at or near retirement age, and lost $2.8 million for his clients while making commissions of $3.7 million in “ill-gotten gains.” These tradings are alleged to have taken place while was employed with Meyers Associates L.P. in Miami Beach, Florida, from 06/19/2012 through 11/17/2014. Meyers Associates was expelled by FINRA on 5/29/2018.

Karl Foust Subject Of $1.1M In Customer Disputes With Wimbledon Health Partners Investments

October 5, 2018 | Silver Law Group

Karl Ronald Foust, Jr. (CRD #1010291) is a formerly registered broker and investment advisor who was last registered with H.D. Vest Investment Services (CRD #13686) of Boca Raton, FL. His previous employers include Gunnallen Financial, Inc. (CRD #17609) of Delray Beach, FL, Thomas James Associates, Inc. (CRD #15609) and Apple Financial Corporation (CRD #10375). No current employment information is available. He has been in the industry since 1981.

Richard-Gomez-Allegedly-Involved-With-Fraudulent-Company-1024x681-300x200 Foust currently has seven disclosures on his record, all customer disputes, one of which was closed without action. These customer disputes were all filed in the period between June 2017 and July 2018.

All of these disputes (including the closed case) are currently listed as “pending.” The common thread through each of these claims is Foust’s recommendations of the client’s investments in Wimbledon Health Partners, LLC, and failing to disclose his own involvement with the firm, a conflict of interest. Payments promised were not made to clients, and total damages of these claims comes to $1,198483.34.