Unsuitable Investment Advice

FINRA Suspends Broker Brian Hussey Following Allegations Of Unsuitable Recommendations

August 10, 2018 | Silver Law Group

Brian John Hussey, Jr., (CRD #4640067) is a registered broker and investment advisor who is currently suspended by FINRA. His last (and only employer) is Ameriprise Financial Services, Inc. (CRD #6363) of Tampa, FL. He has been in the industry since 2008.

Hussey’s suspension stems from a customer complaint on 9/23/2016 that he recommended unsuitable investments to a customer. The customer, who was also an administrative employee of Ameriprise, requested damages of $88,728.00. The firm settled for $67,019.24.

The customer alleges that Hussey unsuitably recommended that she liquidate two IRAs that she held which was the largest part of her liquid net worth, and invest in penny stocks focused on commercial marijuana. This was inconsistent with the client’s investment “growth” goals for both IRAs. The client lost most of her investments in these speculative securities.

Criminal Charges And Additional Complaints Against Former Broker Matthew Eckstein

August 7, 2018 | Silver Law Group

In June, we told you about Matthew Evan Eckstein (CRD #2997245), who was a previously registered broker with Sisk Investment Services, Inc. (CRD #19406) of Syossett, NY. In addition to being registered there since 2015, Eckstein owned Sisk and was its CEO. FINRA also expelled Sisk Investment Services on 6/22/2018. Eckstein was previously employed by Gould, Ambroson & Associates Ltd. (CRD #17412) of Garden City, NY since he began working in the industry in 1998.

There have been some new developments with this broker since our last blog post.

SEC-Charges-Paul-Mata-David-Kayatta-Mario-Pincheira-With-Fraud-and-Freezes-Assets-300x199 On 6/12/2018, the Nassau County (New York) District Attorney filed multiple criminal charges against Eckstein:

Morgan Stanley Advisor Barry Garapedian

July 31, 2018 | Silver Law Group

Barry Garapedian (CRD #1039251) is a currently registered broker employed by Morgan Stanley (CRD #149777) of Westlake Village, CA. He has been with Morgan Stanley since 2009. He was previously employed by Citigroup Global Markets Inc. (CRD #7059), Lehman Brothers, Inc. (CRD #7506) and E. F. Hutton & Company, Inc. (CRD #235) He has been in the industry since 1982.

Garapedian has been the subject of three FINRA customer disputes in 2018, all with similar allegations of “unsuitability.” The first one, on 3/20/2018 was denied. The second was filed on 03/22/2018 and involves the period 2013 to 2015, and is listed as “pending.” The third claim, filed on 04/01/18, requests damages of $713,000.00. Garapedian’s statement denies the allegations, and maintains that everything was discussed with the customer prior to any transactions, and the investments recommended were suitable for the client. This claim is also listed as “pending.”

One claim was also filed in 2017, alleging the same “unsuitablility,” and was closed with no action.

Silver Law Group Wins Securities Arbitration Award Against Former Naples, Florida-based Kovack Securities Broker Curtis D. Milakovich

July 24, 2018 | Silver Law Group

Silver Law Group attorneys have won an award against Curtis D. Milakovich, formerly of Kovack Securities Inc. on behalf of our clients through FINRA arbitration.

FINRA Awards Our Clients Damages Due to Curtis D. Milakovich’s Misconduct

FINRA-300x202 On December 22, 2017, the Financial Industry Regulatory Authority (“FINRA”) awarded our clients $164,000 due to Milakovich’s misconduct, including unsuitable recommendations, unauthorized trading, negligence, breach of fiduciary duty, and churning.

Silver Law Group is Investigating Carlos Evertsz-Seda of K.C. Ward Financial

June 29, 2018 | Silver Law Group

Carlos Evertsz-Seda is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity. Carlos Evertsz-Seda was employed by K.C. Ward Financial in Ronkonkoma, NY from 2010 – May 2017. Mr. Evertsz-Seda is the subject of two securities arbitration claims for damages due to unsuitable investments. K.C. Ward Financial is a Long Island based brokerage firm owned by Louis Ward.

Contact Our Firm if You’ve Invested with Carlos Evertsz-Seda

If you invested with Carlos Evertsz-Seda 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.

Broker Lee Robert Donais Subject Of $200K Dispute

June 21, 2018 | Silver Law Group

Lee Robert Donais (CRD #2347440) was a registered broker with SCF Securities, Inc. (CRD #47275) of Lighthouse Point, FL, since 2012 through May 2018. His previous employers include Brookstone Securities, Inc. (CRD #13366), brokersXpress LLC (CRD #127081, now defunct), and LPL Financial Corporation (CRD #6413), also of Lighthouse Point, Florida. Donais has been in the industry since 1993.

On 4/17/2018 a client filed a complaint against Donais alleging “unsuitable investment recommendations,” and has requested damages of $200,000. This dispute is currently pending.

Donais has two employment separations. The first, from brokersXpress on 5/10/12, was due to Donais signing a customer’s name to a form for an IRA withdrawal. The customer, he claimed, requested Donais’ signature on the form because he was on travel and didn’t have access to a fax machine or other equipment to submit his own signature. Since the customer was enroute to a property closing in North Carolina, the transaction was necessary for the anticipated closing on May 10, 2012. When contacted by a company representative inquiring about the signature, he admitted signing the form at the customer’s request.

Broker David Schmerber Subject of Customer Dispute

June 21, 2018 | Silver Law Group

David Schmerber (CRD #2093918) is a currently registered broker and investment advisor with Cetera Advisors of Centerville, OH. He has been in the industry since 1990. His previous employers include:

LPL Financial LLC (CRD #6413)
Smith Barney Inc. (CRD #7059)

First Nationle Solution LLC, United RL Capital Services, and Percipience Global Corp. $102 Million Ponzi Scheme Attorneys

June 20, 2018 | Silver Law Group

The SEC has shut down a $102 Million Ponzi Scheme that was defrauding investors in several states. The complaint that was filed in federal district court in Manhattan charges Perry Santillo from Rochester, New York, Christopher Parris from Rochester, New York, Paul LaRocco from Ocala, Florida, John Piccarreto from San Antonio, Texas, and Thomas Brenner from Orville, Ohio. These brokers are said to have defrauded over 600 investors through sales of securities in issuers that they controlled including the following: First Nationle Solution LLC, United RL Capital Services, and Percipience Global Corp. If you or someone you know lost their investment by investing with one of these brokers and/or companies, then it is highly recommended to speak to an attorney in order to assess your potential legal options to recover your investment capital.

The SEC Allegations of Fraud

Centaurus Financial

June 1, 2018 | Silver Law Group

Centaurus Financial has been the recipient of multiple FINRA actions, including 11 regulatory events and 8 reported arbitration claims. Not all of these are major issues, but they could be relevant to an investor doing business with Centaurus.

The SEC has strict rules about how a broker-dealer operates, runs their business and keeps records; any variation from these rules can trigger a sanction or other regulatory process. Centaurus has been the subject of multiple sanctions for various infractions and disputes filed by customers. For these regulatory sanctions, the company has paid $532,156.62 in penalties, fines and fees over the years. In some cases, there were no financial products involved or sold, only regulatory violations.

Centaurus has paid out $3,064,930.66 in securities arbitration awards and judgments.

FINRA Bars Broker Charles Henry Frieda After Multiple Allegations of Unsuitable Investments

May 25, 2018 | Silver Law Group

Former Broker Charles Henry Frieda (CRD #5502319) has been barred after FINRA investigated more than 50 client allegations of improper investments. Frieda’s last employer of record was Wells Fargo Clearing Services (aka Wells Fargo Advisors, CRD #19616) of Irvine, CA, where he was employed from 10/05/2012 through 09/20/2017. Although he was previously registered as a broker and as an investment advisor, he is not currently registered with any broker, and no information is available on any current employer.

His previous employment record includes:

Morgan Stanley (CRD #19616) of Brea, CA, from 06/01/2009 through 10/24/2012