Stockbroker Misconduct

Discharged Morgan Stanley Broker Charles Albert Dixon Is Permanently Barred By FINRA

April 27, 2018 | Silver Law Group

Former broker Charles Albert Dixon, Jr. (CRD# 1660422) has been permanently barred by FINRA after a disciplinary action that was signed and completed on 1/22/2018. He is no longer allowed to work as a broker, associate with another broker or be affiliated with a broker-dealer firm. Dixon was discharged by his employer, Morgan Stanley Smith Barney, LLC (CRD#149777) of Houston, TX. He was registered with Morgan Stanley from 06/01/2009 to 04/17/2017.

Dixon was previously registered as a broker with:

Morgan Stanley & Company, Incorporated (CRD# 8209), Houston, TX, from 04/02/2007 to 06/01/2009

Colorado Investigates California-Based Peter Gerhard Klaas For High Risk Trading, Seeking License Revocation

April 13, 2018 | Silver Law Group

Peter Gerhard Klaas (CRD# 2381681) is currently registered as a broker and investment advisor, and is employed at El Segundo, CA-based Cetera Advisor Networks since 05/2017. He is registered with Cetera in both Murray, UT and Las Vegas, NV, and licensed in Arizona, Idaho, Nevada and Utah.

Klaas was previously employed with Allegis Investment Services (05/2014-03/2017,) Signator Financial Services (04/2011-06/2014), and LPL Financial (09-2007-05/2011.)

The Colorado Division of Securities is currently investigating broker Klaas for along with broker Heath Bowen (CRD# 4824684) for putting advisory clients in high-risk and complex option trades that said clients didn’t understand. CDS is not requesting monetary damages in this pending investigation, but is asking for the revocation of Klaas’ licensure. This investigation began while Klaas was employed with Allegis.

Silver Law Group is Investigating Gary Adkin of Stifel, Nicolaus & Company

April 6, 2018 | Silver Law Group

Gary Adkin (CRD# 3084484) is the subject of a pending customer dispute alleging $1,550,000 in damages. Adkin has been with the Palm Beach, Florida office of Stifel, Nicolaus & Company since 2015. He was previously registered with Barclays Capital, also located in Palm Beach. Silver Law Group is a South Florida-based law firm that handles securities arbitration and investment fraud cases.

In the pending dispute, Claimants allege that Adkin was negligent and failed to exercise responsibility in connection with their account. FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs.

Contact Our Firm if You’ve Invested with Gary Adkin

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 Patrick Maddren of Laidlaw & Company

March 6, 2018 | Silver Law Group

Laidlaw & Company financial advisor Patrick Maddren (CRD# 4665903) is the subject of a customer complaint for excessive trading and commissions. Maddren has been registered with Westpark Capital, Inc. in Fort Lauderdale, Florida since August 2017. Previously, he was registered with Laidlaw & Company in Fort Lauderdale, Florida from 2017 to September 2017. A recent customer arbitration claim was settled for $295,000. A brokerage firm has a duty to supervise its stockbrokers and prevent excessive trading or commissions. If a firm fails to properly supervise a financial advisor or otherwise mismanage a portfolio, an investor may have legal rights.

Contact Our Firm if You’ve Invested with Patrick Maddren

If you invested with Patrick Maddren and believe you have lost money due to his misconduct, you may be able to file a claim to recover your losses through FINRA arbitration. For a free evaluation of your potential case by as securities attorney, please contact Silver Law Group.

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

Silver Law Group is Investigating UBS Financial Services Broker James Dillon for Potential Unsuitable Recommendations Relating to Puerto Rico Municipal Bonds

March 5, 2018 | Silver Law Group

Silver Law Group is investigating claims against UBS Financial Services (“UBS”) New York-based stockbroker James Dillon (“Dillon”). According to the Financial Industry Regulatory Authority (“FINRA”), Dillon’s FINRA BrokerCheck record shows a pending customer dispute alleging claims of unsuitable concentration in connection with the purchase of Puerto Rico municipal bonds. The damages alleged in the complaint are $500,000.

Silver Law Group is representing investors in claims against UBS and several other brokerage firms relating to the sale and concentration of portfolios in Puerto Rico municipal bonds. Brokers recommended Puerto Rico bonds due to their high coupons without disclosing to investors the risks associated with the Puerto Rican economy and the on-going recession on the island. Many elderly and conservative investors lost substantial portions of their portfolios when the Puerto Rico municipal bonds collapsed in value causing many to lose their entire retirement savings.

Silver Law Group is representing customers of brokerage firms in securities arbitration claims for losses in Puerto Rico municipal bonds alleging that the customers were misled about the risks of the bonds, overconcentration, breach of fiduciary duty, and excessive trading.

Wells Fargo Under Investigation for Abuse of Customer 401(k) Accounts

March 2, 2018 | Silver Law Group

Wells Fargo has disclosed a federal investigation into sales practice violations in customer 401(k)s after a whistleblower cited sales problems in customer accounts.

Multiple potential violations are disclosed including improper referrals, excessive fees and undisclosed conflicts of interest. In the current bull market, many investors did not appreciate the fees being charged as their accounts were profitable and fees can be difficult to calculate.

Silver Law Group represents institutional and retail investors in claims for portfolio mismanagement, stockbroker misconduct and investment fraud. If you believe your portfolio was mismanaged, excessively traded or your financial advisor purchased esoteric or high cost alternative investments, call us to discuss your legal rights toll-free (800) 975-4345 or e-mail at SSilver@silverlaw.com.

Silver Law Group is Investigating Joseph Cotter of Petersen Investments

March 2, 2018 | Silver Law Group

Former North Carolina-based Petersen Investments broker Joseph Cotter has been named in a FINRA Investigation and is currently not affiliated with any broker-dealer firm.

Joseph Cotter was most recently registered with Petersen Investments in Charlotte, North Carolina (2016-2017). Previous registrations include Next Financial Group in Charlotte, North Carolina.

According to his BrokerCheck Report, in May 2017, Joseph Cotter voluntarily resigned from his position at Petersen Investments while under FINRA investigation. In April 2017 FINRA disclosed that it was “forwarding Examination 20160493163 to their Enforcement Department.” In 2016, Cotter was discharged from his position at Next Financial Group after “an internal review of the trading activity in a customer’s accounts and found the level of trading activity to be excessive in light of the customer’s profile and the character of the account.” An arbitration claim against Next Financial Group recently settled for over $300,000 involving Mr. Cotter.