Securities Arbitration Lawyers Blog

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.

FINRA Suspends, Fines Broker Ian Greenblatt For Selling Away

January 28, 2019 | Silver Law Group

Ian Greenblatt (CRD #2276966, aka “Eric Green”) is a registered broker currently employed with Capitol Securities Management, Inc. (CRD #14169) of Melville, NY. His previous employers include Capitol Securities & Associates, Inc. (CRD #7278), Westrock Advisors, Inc. (CRD #114338, expelled by FINRA on 1/18/2011), both of Melville, NY and Weatherly Securities Corporation (CRD #11081), of New York, NY. He has been in the industry since 1992.

FINRA-Permanently-Bars-Barry-Hartman-From-Securities-Activity-for-Alleged-“Selling-Away”-Activities-300x209 FINRA recently suspended Greenblatt for 30 days after he attempted to settle a customer complaint away from the firm in March 2016. After two of his customers complained about the firm and the loss of $170,000 from their brokerage account, he failed to discuss this complaint with his firm. Greenblatt visited these customers and gave them $4,000 in cash and a check for $46,000 to their son, who is not a firm customer nor one of Greenblatt’s.

During the meeting, they allegedly discussed re-investing their funds to try and recover the losses they suffered with the firm by depositing the money with CSMI’s clearing firm. Unfortunately, Greenblatt was not able to recover their losses, and the customers filed for arbitration against Greenblatt in August of 2017.

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.

FINRA Suspends Broker Patrick Phillips After Allegedly Borrowing $70K From Client

January 25, 2019 | Silver Law Group

Patrick Jermaine Phillips (CRD #4315963) is a former registered broker and investment advisor whose last employer was MSI Financial Services, Inc. (CRD #14251) of Chicago, IL. His previous employers include Citigroup Global Markets Inc. (CRD #7059), Ameriprise Financial Services, Inc. (CRD #6363) and Robert W. Baird & Co. Incorporated (CRD #8158), also of Chicago. He has been in the industry since 2001. No current employment information is available.

Morgan-Stanley-Discharges-and-FINRA-Permanently-Bars-Broker-Samuel-Wylie-Sloane-218x300 On 6/8/2017, a customer filed a complaint against Robert W. Baird, attempting to recover $70,000 that Phillips borrowed from her during his employment and refused to repay. Philips borrowed the money without the knowledge of Baird and in violation of the firm’s policies.

On 8/3/2018, FINRA suspended Phillips after a disciplinary action, which included the unauthorized loan and violating the policies of member firm CGMI prohibiting the use of personal emails for business purposes. These emails prevented CGMI from seeing the emails regarding the loans, as required by the firm’s rules on recordkeeping. Additionally, in 2013, the client moved all of her accounts to CGMI so that Phillips could continue as her broker.

Florida Broker Mitchell Walk Subject Of Five Customer Disputes

January 25, 2019 | Silver Law Group

Mitchell Brian Walk (CRD #3195375) is a currently registered broker and investment advisor. He has been employed by Kestra Investment Services, LLC (CRD #42046) of Longwood, FL since 2001. He was previously employed by Securities America, Inc. (CRD #10205) of Lavista, NE. He has been in the industry since 2000.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-300x200 Walk has five disclosures, all customer disputes in different stages. The most recent was filed on 08/14/2017, alleging that Walk made unsuitable recommendations to the client, and that Kestra Investment Services didn’t properly supervise those recommendations. The client is requesting damages of $72,000. The case is currently pending.

His next disclosure is also a pending customer dispute, filed on 10/4/2016. Walk is accused of misrepresentations in his recommendations (as well as other actions) in the sale of numerous alternative investment vehicles in August of 2014. This customer is requesting damages of $350,000.

FINRA Suspends Broker Lloyd Johnston Over Information Request And Multiple Tax Liens

January 25, 2019 | Silver Law Group

Lloyd Mark Johnston (CRD #1626695) is a previously registered broker and investment advisor who was last employed with Capital Financial Services, Inc. (CRD #8408) of Spokane, WA. He was previously employed with Legacy Financial Services, Inc. (CRD #38697) of Clinton, MD., Investors Capital Corp. (CRD #30613) of Lynnfield, MA, and Intersecurities, Inc. (CRD #16164) of St. Petersburg, FL. No current employment information is available. He has been in the industry since 1987.

Failure-to-Adequately-Supervise-Prompts-FINRA-Suspension-of-Roman-Luckey-300x200 FINRA suspended Johnston on 06/25/2018 indefinitely after he failed to respond to a request for information. The suspension will continue until he provides the requested information. Should Johnson decline to provide this information, continue not responding or fail to request termination of his suspension, the suspension will be converted to a bar. FINRA began its investigation on 02/08/2018.

Johnston was discharged from Capital Financial Services on 05/14/2018 for failing to disclose “reportable events” on his U4. While the reportable events were not described, BrokerCheck lists a total of 15 tax liens in his disclosures dating back to 2000.

FINRA Bars James Lyons After Unauthorized Trading Allegations And Employment Discharge

January 25, 2019 | Silver Law Group

James Edward Lyons (CRD #1020397) is a former broker and investment advisor who was last registered with Raymond James & Associates, Inc. (CRD #705) of Shreveport, LA. He was previously employed by Morgan Keegan & Company, Inc. (CRD #4161), also of Shreveport, and Capitol Securities Group, Inc. (CRD #8094). No current employment information is available. He has been in the industry since 1981.

Lyons is the subject of a current customer dispute with multiple claimants alleging a number of complaints, including unauthorized trading, fraudulent concealment, overconcentration, unsuitability and others. The actions in question occurred between 2001 and 2017. The damages requested total $5,000,000. The case is currently pending.

A similar complaint was filed on 04/29/2016, with many of the same allegations from 2/17/2011 – 4/29/2016. The client alleges unauthorized trading, churning, fraudulent omissions, suitability, and securities law violations at both the federal and state (Louisiana) level. The client requested damages of $1,200,000, and the case was settled for $400,000.

FINRA Suspends Broker Bradley Pace

January 24, 2019 | Silver Law Group

Bradley Taylor Pace (CRD #2097427) is a previously registered broker whose last employer was LPL Financial LLC (CRD #6413) of Orlando, FL. His previous employers include A.J. Pace & Co., Inc. (CRD #24228), also of Orlando, TD Waterhouse Investor Services, Inc. (CRD #7870) of Omaha, NE, and Quick & Reilly, Inc. (CRD #11217) of New York, NY. No current employment information is available. He began in the industry in 1991.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 FINRA sent Pace a request for information, which he did not respond to by the requested deadline. FINRA then suspended Pace, indefinitely and in all capacities, effective 06/28/2018. Should Pace fail to request termination of his suspension within a 3-month time frame, he will be barred by FINRA from any association with any FINRA member firm. There is no indication of what prompted the request, or if any complaints were involved.

Pace is also the subject of a customer dispute, filed on 1/26/2018. In it, the customer alleged “unsuitability relating to the purchase of a REIT investment and misrepresentation relating to the liquidity of the REIT investment.” However, the claim was denied, and no additional information is available.

More Customer Complaints Against Sean Brady, Claims Of $12.5M In Damages

January 24, 2019 | Silver Law Group

In August, we told you about former broker Sean Brady (CRD #4365173) who was recently barred by FINRA and discharged by his employer, First Allied Securities, Inc. (CRD #32444) of St. Louis, MO.

Allegations-of-Sales-Practice-Violations-Cloud-Broker-Kenneth-Dlouhy-‘s-Record-300x200 Since our last report, eight more customer disputes were recently filed against Brady, between 6/28/2018 and 07/03/2018. All these cases are pending, and the total of requested damages is an eye-watering $12,575,730.49.

Like the previous disclosures, these clients allege that Brady used the same practices, including: