Stockbroker Misconduct

Sherman L. Greer, Formerly North Carolina LPL Financial Branch, Under Investigation

April 7, 2017 | Silver Law Group

Silver Law Group is investigating former Locust, North Carolina-based LPL Financial LLC (CRD# 6413) broker Sherman L. Greer(CRD# 4910464) after FINRA permanently barred him.

According to Greer’s FINRA BrokerCheck report, FINRA permanently barred Greer in November 2016 from acting as a broker or otherwise associating with firms that sell securities to the public after Greer failed to respond to FINRA’s request for information.

Prior to FINRA’s bar, LPL Financial discharged Greer in May 2016 after he failed to respond to inquiries from LPL Financial’s compliance department.

Jeffrey L. Offen, Employed by 17 Different Firms, Suspended by FINRA

April 7, 2017 | Silver Law Group

Silver Law Group is investigating New York-based broker Jeffrey L. Offen (CRD# 2893980) after FINRA suspended him.

According to Offen’s FINRA BrokerCheck report, FINRA suspended Offen for 60 days and fined him $5,000 in December 2016. Offen consented to the sanctions and entry of findings that he failed to timely update his Form U4 to disclose reportable information.

Offen has 16 disclosures on his BrokerCheck report, but most of them are civil and tax judgment/liens. Two (2) FINRA arbitration complaints were settled against him, though.

Colorado Cetera Advisors Broker Ken A. Balser Permanently Barred by FINRA

April 7, 2017 | Silver Law Group

Silver Law Group is investigating Colorado-based Cetera Advisors LLC (CRD# 10299) broker Ken A. Balser (CRD# 704053) after FINRA permanently barred him.

According to Balser’s FINRA BrokerCheck report, FINRA permanently barred Balser from acting as a broker or otherwise associating with firms that sell securities to the public. The permanent bar follows Cetera Advisor’s discharge of Balser in July 2016 due to allegedly engaging in private securities transactions in violation of Cetera Advisors policy.

Balser, according to the FINRA BrokerCheck report, consented to sanctions and the entry of findings that he refused to appear for testimony and provide documents and information requested by FINRA for an investigation into the allegations that Balser had engaged in private securities transactions with Cetera Advisors.

Florida-based Ameriprise Broker Brian T. Perry Under Investigation

April 7, 2017 | Silver Law Group

Silver Law Group is investigating former Ameriprise Financial Services, Inc. (CRD# 6363) broker Brian T. Perry (CRD# 2874937) after FINRA permanently barred him.

According to Perry’s FINRA BrokerCheck report, FINRA permanently barred Perry in December 2016 from acting as a broker or otherwise associating with firms that sell securities to the public. FINRA barred Perry because he failed to respond to a FINRA inquiry.

Perry’s permanent bar follows a customer complaint in October 2016 alleging Perry made unauthorized trades, failed to follow transaction instructions, and provided poor service which resulted in losses. The claim, according to the BrokerCheck report, was denied.

Larry C. Wolfe, formerly of Boca Raton, Florida HJ Sims, Under Investigation Over Unauthorized Trading

April 5, 2017 | Silver Law Group

Silver Law Group is investigating former Boca Raton, Florida-based Herbert J. Sims & Co. Inc. (CRD# 3420) (“HJ Sims”) broker Larry Charles Wolfe (CRD# 502361) after five (5) customers filed complaints alleging unauthorized trading.

According to Wolfe’s FINRA BrokerCheck report, Wolfe has thirteen (13) disclosures.

Allegations of churning, unsuitability and unauthorized trading against Wolfe date back to a 1991 FINRA arbitration award and a 2001 settlement. The allegations then ramped up starting in 2010.

John S. Elliot, Former Kansas Ameriprise Financial Broker, Under Investigation Over Selling Away Allegations

April 3, 2017 | Silver Law Group

Silver Law Group is investigating former Overland, Kansas-based Ameriprise Financial Services, Inc. (CRD# 6363) broker John S. Elliot (CRD# 5981598) over allegations that he sold customers an outside investment.

According to Elliot’s FINRA BrokerCheck, Ameriprise discharged Elliot in August 2016 for violating Ameriprise compliance policies relating to selling away.

Following Elliot’s Discharge from Ameriprise, two customers filed FINRA arbitration complaints against the broker in November 2016. Both of the complaints allege Elliot sold the customers an unapproved investment in Selden Companies, LLC and damages of almost $1 million in the aggregate.

Christopher J. Calandrino, Worked For 8 Firms in Last 5 Years, Permanently Barred by FINRA

April 3, 2017 | Silver Law Group

Silver Law Group is investigating former New York-based broker Christopher J. Calandrino (CRD# 5238231) after he resigned from Joseph Stone Capital L.L.C. (CRD# 159744) for allegedly selling outside investments.

According to Calandrino’s FINRA BrokerCheck report, Joseph Stone allowed Calandrino to voluntarily resign in October 2016 while the firm investigated him over selling away allegations as well as for various potential violations of firm policy and regulatory rules and regulations.

Following Calandrino’s resignation, FINRA permanently barred him in November 2016 after he failed to respond to a FINRA request for information.

IMS Securities Broker Michael J. Spears Under Investigation Over Non-traded REIT Unsuitability Allegations

March 27, 2017 | Silver Law Group

Silver Law Group is investigating Houston, Texas-based IMS Securities Inc. (CRD# 35567) broker Michael J. Spears (CRD# 4501523) after two (2) customers filed complaints against Spears regarding non-traded REITs.

According to Spears’ FINRA BrokerCheck report, two customers filed complaints against Spears in 2016. The first, in August 2016, alleges negligence, misrepresentation, failure to supervise, breach of fiduciary duty and involves non-traded REITs. The FINRA arbitration claim alleges over $1.6 million in damages.

The second, filed in July 2016, also involves real estate securities as well as variable annuities (“VAs”). This FINRA arbitration complaint alleges negligence, overconcentration, breach of fiduciary duty, misrepresentations, failure to supervise and damages in the amount of $3 million.

Former Houston, Texas-based Park Avenue Securities Broker Beth Ty Under Investigation Over Selling Away

March 27, 2017 | Silver Law Group

Silver Law Group is investigating former Houston, Texas-based Park Avenue Securities (CRD# 46173) broker Lizabeth Gotuaco Ty (CRD# 4737319) (also known as “Beth Ty”) after FINRA permanently barred her.

According to Ty’s FINRA BrokerCheck report, FINRA permanently barred Ty in May 2016 after she failed to provide documents and information requested by FINRA during the course of an investigation into allegations that she sold unregistered securities. It has been alleged in a pending FINRA claim that Ty recommended that her clients invest in DayStar Funding LP (“Daystar”), which allegedly was outside of Park Avenue’s approved investments.

In July 2015, the Securities and Exchange Commission (the “SEC”) filed a complaint against Frederick Alan Voight, owner and control person of Daystar, and Daystar alleging that it was a Ponzi scheme. In August 2016, Voight settled the SEC charges.

Former Las Vegas Wells Fargo Broker Donald S. Toomer Allegedly Received Kickbacks for Selling Microcap Stocks

March 14, 2017 | Silver Law Group

Silver Law Group is investigating former Las Vegas, Nevada-based Wells Fargo Advisors Financial Network, LLC (CRD# 11025) broker Donald S. Toomer (CRD# 2842723) after he was discharged by Wells Fargo and named in an SEC and criminal complaint over allegations that he sold microcap stocks to his customers in exchange for cash kickbacks.

On December 21, 2015, a criminal charge was filed against Toomer charging him with conspiracy to commit securities fraud and investment adviser fraud, investment adviser fraud, and securities fraud. The same day, the SEC announced civil charges against Toomer when it amended its initial complaint. Wells Fargo subsequently allowed Toomer to resign following the allegations, according to Toomer’s FINRA BrokerCheck report.

According to the SEC amended complaint (the “Complaint”), the SEC alleges Toomer abused his role as financial advisor to help create the false appearance of market demand in four microcap stocks: BioNeutral Group, Inc. (“BONU”); NXT Nutritionals Holdings, Inc. (“NXTH”); Mesa Energy Holdigns, Inc. (“MSEH”); and Clear-Lite Holdings, Inc. (“CLRH”) (collectively, the “Issuers”).