Stockbroker Misconduct

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.

California Kestra Broker Tom Puentes Under Investigation Over Alleged Unauthorized and Unsuitable Transactions in Puerto Rican Bonds

January 25, 2017 | Silver Law Group

Silver Law Group is investigating California-based Kestra Investment Services, LLC (CRD# 42046) broker Tom A. Puentes (CRD# 1713812) amidst 23 disclosures on his FINRA BrokerCheck report.

According to Puentes’ FINRA BrokerCheck report, Puentes has a total of 23 disclosures, with 15 settling for over $750,000. A large majority of the settled claims allege unauthorized and unsuitable transactions in Puerto Rican municipal bonds.

Puentes’ actions concerning the settlements occurred while he was employed by Morgan Stanley (CRD# 149777). Morgan Stanley discharged Puentes in October 2014 over allegations against Puentes over his use of discretionary trading without written authorization.

Miami-based Broker Fernando de la Lama Merino Under Investigation

January 25, 2017 | Silver Law Group

Silver Law Group is investigating former Miami, Florida EFG Capital International (CRD# 40118) broker Fernando de la Lama Merino (CRD# 2257749) after FINRA permanently barred him.

According to Merino’s FINRA BrokerCheck report, FINRA initiated a regulatory action against Merino in October 2016. The action states, according to Merino’s BrokerCheck report, that Merino was named a respondent in a FINRA complaint alleging that he failed to provide any response to requests for documents and information related to a FINRA investigation into his potential misconduct involving the sales of illiquid structured notes and bonds referred by a foreign individual while he was associated with a FINRA member firm.

Structured notes have been subject to investor alerts and bulletins by both the SEC and FINRA.

Former Las Vegas Ameriprise Broker Cheryl L. Wallace Discharged for Alleged Unauthorized Trading

January 25, 2017 | Silver Law Group

Silver Law Group is investigating former Las Vegas, Nevada-based Ameriprise Financial Services, Inc. (CRD# 6363) broker Cheryl L. Wallace (CRD# 4839255) after she was discharged by Ameriprise for unauthorized trading among other allegations.

According to Wallace’s FINRA BrokerCheck report, Wallace was discharged from Ameriprise in February 2016 after she allegedly failed to follow clients’ instructions, communicated incorrect information to the client and used discretion on trades in the accounts.

Four months later, in June 2016, FINRA permanently barred Wallace from acting as a broker or otherwise associating with firms that sells securities to the public after she failed to respond to a FINRA request for information.