Stockbroker Misconduct

Former LPL Financial Broker Michael Babyak Jr Under Investigation After FINRA Permanent Bar

March 14, 2017 | Silver Law Group

Silver Law Group is investigating former LPL Financial LLC (CRD# 6413) broker Michael Babyak Jr, II after FINRA permanently barred him.

According to Babyak’s FINRA BrokerCheck report, FINRA permanently barred Babyak from acting as a broker or otherwise associating with firms that sell securities to the public in October 2016.

Without admitting or denying the findings, FINRA found that Babyak had customers invest a total of $4.25 million into a limited liability company that he set up. Babyak, who had complete control over the LLC, then loaned the $4.25 million to a third party for the benefit of his customers. Further, Babyak arranged for the repaid funds to be loaned to two additional borrowers. Babyak failed to notify his employing firm he was participating in these additional transactions.

Former Milestone Investments Broker Michael W. Miles Under Investigation After FINRA Suspension

March 14, 2017 | Silver Law Group

Silver Law Group is investigating former Charlotte, North Carolina-based Milestone Investments, Inc. (CRD# 47090) broker Michael W. Miles (CRD# 3206302) after FINRA suspended him for six months.

According to Miles’ FINRA BrokerCheck report, FINRA suspended Miles six months and fined him $10,000 in October 2016. According to the BrokerCheck report, Miles consented to the sanctions, without admitting or denying the findings, and to the entry of findings that he willfully failed to amend his Form U4 to report a Consent Judgment and Order he entered into with the United States Department of Labor (the “USDL”) in which he was permanently enjoined from acting as a fiduciary to any employee benefit plan.

The Acceptance, Waiver & Consent (“AWC”) entered into between FINRA and Miles references an additional disclosure on Miles’ BrokerCheck report that occurred in May 2014. According to Miles’ BrokerCheck report, the USDL alleged that Miles breached his fiduciary duty with respect to the Miles & Associates, Inc. 401(k) profit sharing plan by failing to discharge his duties under the plan and violating multiple ERISA rules.

Las Vegas Broker Frank R. Underhill Under Jr Investigation After FINRA Permanently Bars Him

March 14, 2017 | Silver Law Group

Silver Law Group is investigating former Las Vegas, Nevada broker Frank R. Underhill Jr. (CRD# 4970331) after FINRA permanently barred him.

According to Underhill’s FINRA BrokerCheck report, Underhill who owned and operated his own brokerage firm, Underhill Securities Corp. (CRD# 148001), FINRA permanently barred Underhill from acting as a broker or otherwise associating with firms that sell securities to the public.

Underhill failed to respond to a FINRA request for information, according to his BrokerCheck report, which was the cause of his permanent bar.

Transamerica Financial Advisors Broker Harry C. Bennett Barred in Connection Unsuitability Investigation

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Michigan-based Transamerica Financial Advisors, Inc. (CRD# 16164) broker Harry C. Bennett (CRD# 2395555) after FINRA permanently barred the broker in connection with an investigation alleging excessive commissions and unsuitability.

According to Bennett’s FINRA BrokerCheck report, FINRA permanently barred Bennett from selling securities to the public in November 2016. FINRA barred Bennett when, according to his BrokerCheck report, Bennett failed to appear for on-the-record testimony requested by FINRA in connection with an investigation involving allegations that he may have engaged in sales practice violations by charging excessive commissions and recommending unsuitable transactions to his customers.

FINRA’s findings state that Bennett’s refusal to appear for the on-record testimony prevented FINRA from reaching a determination as to whether the alleged unsuitable recommendations and excessive commission charges violations occurred.

William Upchurch Jr., Former Maryland PFS Investments Broker Under Investigation

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former PFS Investments Inc. (CRD# 10111) broker William Upchurch Jr. (CRD# 1195846) after FINRA permanently barred the broker.

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

In September 2015, Upchurch settled a FINRA arbitration for the full amount after the customer alleged she could not locate a $20,000 account Upchurch had established for in 2013.

Broker Matthew DiGregorio Who Has Worked at 18 Different Firms Under Investigation After FINRA Bar

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former New York broker Matthew DiGregorio after FINRA permanently barred him.

According to DiGregorio’s FINRA BrokerCheck report, FINRA permanently barred DiGregorio after he told FINRA staff that he does not intend to honor an award that a FINRA arbitration panel ordered him to pay to his former partners at a FINRA member firm. Further, the complaint DiGregorio was named a respondent in alleges that DiGregorio made false representations to the FINRA panel regarding claims that his child was involved in an accident in order to extend the hearing sessions.

This is not the first time DiGregorio has been punished by FINRA for similar misconduct. In August 2015, FINRA suspended DiGregorio for failing to comply with a settlement agreement or arbitration award or to satisfactorily update FINRA on the status of his compliance.

Former Cetera-related Broker Clay E. Hoffman Has 19 BrokerCheck Disclosures; FINRA Actions

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Georgia-based Summit Brokerage Services, Inc. (CRD# 34643) broker Clay E. Hoffman (CRD# 4371162) due to multiple FINRA actions pending against him and his racking up of 16 BrokerCheck disclosures in the past five years.

FINRA has initiated four regulatory actions against Hoffman in 2016, according to Hoffman’s FINRA BrokerCheck report. Our attorneys have been monitoring FINRA’s actions against Hoffman.

The first, initiated in February, alleged Hoffman exercised discretion in a customer’s account and made unauthorized transactions without written authorization from the customer or the approval of Hoffman’s firm. Hoffman was fined $5,000 and suspended for 15 days.

Permanently Barred Nebraska Broker Matthew L. Geiser Under Investigation

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Nebraska-based Independent Financial Group, LLC (CRD# 7717) broker Matthew L. Geiser after FINRA permanently barred him.

According to Geiser’s FINRA BrokerCheck report, FINRA permanently barred Geiser from acting as a broker or otherwise associating with firms that sell securities to the public in November 2016. FINRA and Geiser entered in an Acceptance, Waiver & Consent (“AWC”) in which Geiser consented to the bar and findings that he refused to appear for FINRA on-the-record testimony in connection with an investigation into allegations of misconduct against Geiser, including allegations of unsuitable recommendations and misleading statements about variable annuities.

Geiser, who initially was employed by Princor Financial Services Corporation (CRD# 7717), was discharged by Princor in September 2015 for issues involving suitability recommendations. Princor is also known as Principle Securities, Inc. Since Princor’s discharge of Geiser, 11 FINRA arbitration complaints against Geiser have settled.

Arizona LPL Financial Broker Dominic T. DeBruin Under Investigation After FINRA Bar

February 10, 2017 | Silver Law Group

Silver Law Group is investigating former Arizona-based LPL Financial LLC (CRD# 6413) broker Dominic T. DeBruin (CRD# 2788196) after FINRA permanently barred the broker.

According to DeBruin’s FINRA BrokerCheck report, FINRA permanently barred DeBruin from acting as a broker or otherwise associating with firms that sell securities to the public.

According to the FINRA BrokerCheck report, DeBruin, without admitting or denying the findings, consented to FINRA entry of findings that he refused to provide information and documents and to appear for on-the-record testimony as requested by FINRA.

Minnesota TradingBlock Broker Joshua D. Arnold Under Investigation

January 25, 2017 | Silver Law Group

Silver Law Group is investigating former TradingBlock (CRD# 128605) broker Joshua D. Arnold (CRD# 828189) for recent allegations of negligence and unsuitable recommendations among others.

According to Arnold’s FINRA BrokerCheck report, Arnold has thirteen (13) disclosures. His most recent was a FINRA arbitration filed in September 2016, and it alleges negligence, unsuitable recommendations, negligent supervision, breach of fiduciary duty and breach of contract. The FINRA arbitration alleges $250,000 in damages and is currently pending.

Most notably, Arnold’s BrokerCheck report contains seven (7) settled complaints. Many of the settled complaints allege unauthorized trading. Collectively, the seven (7) complaints settled for a total of almost $270,000.