Unsuitable Investment Advice

FINRA Bars LPL Broker Suhail Khan After $775K Dispute

February 1, 2019 | Silver Law Group

Suhail Saleem Khan (CRD #3168241) is a former registered broker and investment advisor who was last employed with LPL Financial LLC (CRD #6413) of Chicago, IL. His previous employers include Vision (CRD #47927) and U.S. Financial Investments, Inc. (CRD #120804), also of Chicago. No current employment information is available. He began in the industry in 1999.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224-300x224 Khan was barred by FINRA after he refused to answer a request for information from them. He was barred in all capacities, and from associating with a FINRA member in any capacity, effective 11/17/2017. Khan did not request a termination of his suspension within 3 months, so he was indefinitely barred from the industry, and remains so to this day.

On 5/25/2018, a customer filed a dispute alleging that from 2013 through 2017, Khan made “unsuitable, speculative investments” in his own hedge fund business, as well as one REIT and an oil & gas business. The customer also alleged that some of the investments contained unregistered securities, and has requested damages of $775,000.00. The case is currently listed as “pending.”

Peter Malis Client Awarded $1.1M Settlement After Churning Allegations

January 31, 2019 | Silver Law Group

Peter Michael Malis (CRD #317892) is a registered broker and investment advisor currently employed with Wells Fargo Clearing Services, LLC (CRD #19616) of Woodland Hills, CA. His previous employers include Prudential Securities Incorporated (CRD #7471) of New York, NY, Bache Halsey Stuart Inc. (CRD #7238) and Paine, Webber, Jackson & Curtis Incorporated (CRD #640). He has been in the industry since 1969.

Antonio-Costanzo-Permanently-Barred-by-FINRA-After-Alleged-Churning-in-Customer-Accounts-300x202 According to CRD records, Malis has five disclosures on his record, all customer disputes. The most recent was filed on 12/7/2017, alleging unsuitable investments and that he never discussed any transactions with the client during the time period 2/13/2006 through 12/31/2016. This claim was denied.

The next claim was filed on 09/13/2016, alleging excessive and unsuitable unauthorized trading, churning, and unsuitable account portfolio management from April 2002 through 2015. This claim went to arbitration and settled on May 2, 2017 for $1,100,000.00. Malis did not contribute to this settlement amount.

Broker Bryon Martinsen Accused Of Misrepresentation By Client

January 31, 2019 | Silver Law Group

Bryon Edwin Martinsen (CRD #1621649) is a registered broker and investment advisor currently employed with Centaurus Financial, Inc. (CRD #30833) of Northport, NY. His previous employers are AXA Advisors, LLC (CRD #6627) and The Equitable Life Assurance Society Of The United States (CRD #4039), both of New York, NY. He has been in the industry since 1987.

Martinsen has a total of eight disclosures on his record dating back to 1999, when he was discharged from AXA Advisors for engaging in outside business activities. He had previously been advised to end these business activities.

My-Financial-Advisor-is-Giving-Me-the-Runaround-on-My-Investments-What-Are-My-Rights-300x200 His most recent disclosure was filed on 6/25/2018. This customer disclosure is currently pending, and includes allegations of “unsuitable investments, misrepresentations, and omission of material risks, in connection with the sale of various investments.” The client has requested damages of $231,244.71. Martinsen denies the allegations.

Broker Michael Morrissett Subject Of $2M Client Dispute

January 31, 2019 | Silver Law Group

Michael Turner Morrissett (CRD #1456789) is a registered broker and investment advisor who is currently employed with Wells Fargo Clearing Services, LLC (CRD #19616) of Roanoke, VA. His previous employers are First Union Brokerage Services, Inc. (CRD #8112) of Charlotte, NC and Dominion Investment Banking, Inc. (CRD #17523) He has been in the industry since 1986.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-1024x683-300x200 Morrissett is the subject of four disclosures, the most recent of which was filed on 4/5/2018. The claimants allege that Morrissett “misrepresented” two hedge funds in 2013 and 2015, and that the information provided on the two alternative investments was “misleading.” The clients have requested damages of $2,300,000. This case is currently pending.

The next customer dispute was filed on 1/15/2014, with the client alleging that Morrissett “pursued an unsuitable investment strategy beginning in 2000 that overexposed her account to the volatility of the equities markets during the global financial crisis of 2008 and 2009.” The case was settled for $85,000 by the firm to avoid the expense and hassle of litigation.

Michael Nixon and Paulson Investment Company LLC

January 31, 2019 | Silver Law Group

Michael Patrick Nixon (CRD #216931) is a registered broker and investment advisor currently employed with Paulson Investment Company LLC (CRD #5670) of Tampa, Florida. His previous employers include Newport Coast Securities, Inc. (CRD #16944) and Meyers Associates, L.P. (CRD #34171), both of Leesburg, VA. Six of his previous employers have been expelled by FINRA, including Newport and Meyers. He has been in the industry since 1991.

Chestnut-Exploration-and-Mark-Plummer-Facing-Allegations-of-Securities-Fraud-With-Oil-Gas-Securities-300x225 Nixon has a total of four disclosures in his record, the most recent a customer dispute filed on 7/9/2018. The claimants allege that from 2013 to 2018, Nixon violated both the Florida Securities Act and the Virginia Securities Act. They also allege that he committed common law and securities fraud and breached his fiduciary duty, and completely misrepresented multiple unsuitable securities and investments. Additional allegations include failure to supervise on the part of the firm (Paulson Investment.) Claimants are requesting damages in the amount of $3,000,000. The case is currently pending.

His previous customer dispute was filed on 10/9/1998, which included allegations of “misrepresentation and deceit” in relation to a stock liquidation to meet a margin call. The client requested damages of $9,000, and was granted damages of $2,006.95. Nixon denied the allegations.

Walter Valenzuela Subject Of Two Multimillion-Dollar Customer Disputes

January 30, 2019 | Silver Law Group

Walter Roland Valenzuela (CRD #2280224) is a registered broker and investment advisor currently employed with Hilltop Securities Inc. (CRD #6220) of Del Mar, CA. His only previous employer was M.L. Stern & Co., LLC. (CRD #8327) of San Diego, CA, where he worked until 2008. He has been in the industry since 1993.

Valenzuela is the subject of seven disclosures, all customer disputes. The most recent dispute was filed on 7/23/20018. Alleging unsuitable recommendations, misrepresentation and excessive trading, the client is requesting damages of $3,000,000. This case is “pending,” and no additional information is available.

Three Individuals Charged by the SEC for Defrauding Elderly Clients on elderfinancialfraudattorneys.com Another still-pending dispute was filed on 8/24/2017, and will be in securities arbitration. The client lists multiple allegations, including elder abuse, financial exploitation, breach of fiduciary duty, excessive trading and misrepresentation. The damages requested are listed at $9,500,000.00. However the claim has no damage amount listed, and the final sum will be determined in arbitration.

Michael Venturino Customer Disputes Total $1.6M

January 30, 2019 | Silver Law Group

Michael Christopher Venturino (CRD #5872439) is a registered broker currently employed with Spartan Capital Securities, LLC (CRD #146251) of Garden City, NY. His previous employers include Trident Partners Ltd. (CRD #41258) of Woodbury, NY and Aegis Capital Corp. (CRD #15007) of Melville, NY. Two other prior employers, Craig Scott Capital, LLC (CRD #155924) and Brookstone Securities, Inc. (CRD #13366), both of Uniondale, NY, have been expelled by FINRA. He has been in the industry since 2010.

Venturino is the subject of 8 disclosures, most recently on 9/11/2018. This customer dispute alleges that from 12/24/14 to 02/28/18, he engaged in misrepresentation, unsuitable recommendations and churning. The client has requested damages of $290,359.83. This case is pending.

FINRA filed a disclosure on 7/17/2018 against Venturino for failing to comply with an arbitration award/letter. He was suspended for one day, as his counsel was arranging installment payments; it later became obvious that the claimant had no intention of doing so. Venturino filed a motion to vacate, and FINRA lifted his suspension.

Broker Roy Failla Subject of $1.5M Dispute

January 28, 2019 | Silver Law Group

Roy Joseph Failla (CRD #2786551) is a registered broker who is currently employed with First Standard Financial Company LLC (CRD #168340) of Red Bank, NJ. His previous employers include Alexander Capital, L.P. (CRD #40077), Brookstone Securities, INC. (CRD #13366, expelled by FINRA on 10/09/2012) and J.P. Turner & Company, L.L.C. (CRD #43177), all of Staten Island, NY. He has been in the industry since 1998.

A customer dispute filed on 5/29/2018 alleges that Failla engaged in “unauthorized trading and unsuitable investments,” and requests damages of $1,500,000. Failla denies the allegations.

Two of Failla’s previous disputes were filed during Failla’s tenure at Brookstone Securities. The first, filed on 2/19/2010, alleged “excessive and unauthorized trading, fraud, breach of fiduciary duty, misrepresentation and unsuitability.” This customer requested damages of $299,817.48, and the case settled for $75,000. The second case, filed on 5/25/2010, alleged “churning, unsuitable trades and misrepresentation.” The client requested damages of $417,000.00, and the case was settled for $40,000.

Broker Stephen Williams Subject Of 7 Customer Disputes

January 25, 2019 | Silver Law Group

Stephen Joe Williams (CRD #2395948) is a registered broker and investment advisor currently employed by NEXT FINANCIAL GROUP, INC. (CRD #46214) of Madison, AL, since 2007. His previous employers are Securities Service Network, Inc. (CRD #13318) of Huntsville, AL, Raymond James Financial Services, Inc. (CRD #6694) of St. Petersburg, FL, and Edward Jones (CRD #250) of St. Louis, MO. He has been in the industry since 1994.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 Williams’ most current customer dispute is pending, and was filed on 2/26/2018. The case centers on allegations that during June of 2008, Williams recommended non-traded REITS (real estate investment trusts) and didn’t disclose the nature and risks of these kinds of private securities. The customer is requesting damages of $350,000.

On 2/2/2018, another customer’s attorney filed a similar allegation with a 2008 time frame. Williams allegedly solicited the client to invest $50,000 in UDF III without informing him of the inherent risks of this illiquid investment. Although the customer requested remediation of $50,000, the dispute was denied.

Sharing Customer Losses Leads To FINRA Suspension For Raymond Menna

January 25, 2019 | Silver Law Group

Raymond Adam Menna (CRD #1918097) is a registered broker and investment advisor currently employed with Planmember Securities Corporation (CRD #11869) of Farmingville, NY. His previous employers include Prime Capital Services, Inc. (CRD #18334) and Mutual Capital Corp. (CRD #106813), both of Ronkonkoma, NY. He has been in the industry since 1989.

Menna has a total of three disclosures, one regulatory and two customer disputes.

On 11/17/2017, a customer filed a dispute alleging that Menna engaged in unauthorized trading, unsuitable investing, misrepresentation and material omissions, and requested damages of $1,000,000. All parties agreed to a settlement of $260,000.00 to avoid the associated costs of litigation. The agreement included stipulations that there was no admission or denial of the charges, and all allegations were denied.