Securities Arbitration Lawyers Blog

FINRA Bans Charles Bloom

January 24, 2019 | Silver Law Group

Charles Lewis Bloom (CRD #4144108) is a former registered broker last employed by Chelsea Financial Services (CRD #47770) of Royal Palm Beach, FL. His previous employers include International Assets Advisory, LLC (CRD #10645) and IAA Financial LLC (CRD #6578) of West Palm Beach, FL, and U.S. Brokerage, Inc. (CRD #39307) of Wellington, FL. No current employment information is available. He has been in the industry since 2000.

FINRA began an investigation into Bloom’s trading practices in October of 2017 after allegations of unsuitable trading in at least three customer accounts. FINRA then requested Bloom to appear to give on-the-record testimony to FINRA regarding the investigation. He declined, and stated in a phone call that he would not give testimony at any time. On 7/17/2018, after signing an Acceptance, Waiver & Consent (AWC) letter, Bloom was indefinitely barred by FINRA effective immediately.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 Shortly after the FINRA action, a customer dispute was filed on 11/8/2017, alleging that Bloom misrepresented and made unsuitable recommendations with regard to a REIT (real estate investment trust.) The case is currently “pending,” and the damages requested are $99,326.84.

Client Accuses Broker Ralph Bianchi Of Recommending Unsuitable Puerto Rican Bonds

January 24, 2019 | Silver Law Group

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.com Ralph Adams Bianchi (CRD #1513063) is a previously registered broker whose last known employer was Wells Fargo Clearing Services, LLC (CRD #19616) of Flemington, NJ. His previous employers include The GMS Group, LLC (CRD #8000) of Livingston, NJ, and Moore & Schley, Cameron & Co. (CRD #6917). No current employment information is available. He began in the industry in 1986.

Bianchi has one disclosure on his record, a customer dispute filed on 01/19/2018. In it, the claimants allege that Bianchi made unsuitable investments in the Puerto Rican bond market. These recommendations were made between 2013 and 2017, when the Puerto Rico bond market found itself in a severe crisis. After the island was later devastated by Hurricane Maria, the financial market collapsed.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

FINRA Awards $1M To Client In Legend Securities Churning Arbitration Claim

January 23, 2019 | Silver Law Group

Zachary-Bader-Suspended-After-Multiple-Allegations-of-Churning-300x232 A man whose account was churned down to $10,000 was awarded both compensatory damages of $375,000 for his original investment plus an additional $700,000 in punitive damages. The client, Herbert W. Voss, was awarded $1.075 million by FINRA.

Mr. Voss’ attorney was quoted as saying that “It was like the Wild, Wild West in terms of lack of controls at the firm. It was unconscionable.”

Legend Securities, expelled by FINRA in April of 2017, was also known as Marlin Trading, Inc. and SPC Securities, Inc. The company’s record lists 32 disclosures. Many of these are similar to Mr. Voss as well as multiple fines and censures.

Broker Ralph Byer Of Merrill Lynch Has Seven Disclosures

January 22, 2019 | Silver Law Group

Ralph Michael Byer (CRD #1038411) is a registered broker and investment advisor currently employed with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) of Plantation, Florida, where he has been since 1982.

Churning-1024x683-300x200 Byer has a total of seven disclosures, all of them customer disputes. The most recent was filed on 06/19/2018, alleging “excessive trading, unsuitable investment recommendations and misrepresentation from 1990 until 2018.” This case is currently pending.

His next previous dispute, filed on 02/03/2014, alleged misrepresentation involving a life insurance policy purchased in June of 1987. This claim was denied. However, the next dispute, filed on 01/27/2009, was settled for $7,000. The client alleged “unsuitable investment recommendations,” and requested damages of $100,000.

FINRA Bars Andrew Mandell After Section 5 Violation Allegation

January 22, 2019 | Silver Law Group

Andrew Jason Mandell (CRD #194970) is a previously registered broker whose last employer was Network 1 Financial Securities Inc. (CRD #13577) of Oakland, CA. Previous employers include Olympus Securities, LLC (CRD #114050), Halcyon Cabot Partners, LTD. (CRD #32664, one of four previous employers expelled by FINRA, on 10/06/2015) and The Vertical Group (CRD #104353), all of New York, NY. No current employment information is available. He has been in the industry since 1992.

Abern-Barred-by-FINRA-for-Failing-to-Cooperate-200x300 Mandell is the subject of two regulatory disclosures, the most recent filed on 8/20/2018. FINRA sent a letter to Mandell asking him for on-the-record testimony in relation to a potential violation of Section 5 of the Securities Act of 1933, which regulates the timeline and distribution process for issuers who offer securities for sale. No specific details are included for this potential violation, but when Mandell declined to testify in the inquiry, he violated FINRA Rules 8210 and 2010. FINRA barred Mandell indefinitely, and in all capacities, effective 8/20/2018, and Mandell signed an Acceptance, Waiver & Consent (AWC) letter agreeing to the sanctions.

There is only one other disciplinary disclosure, filed on 11/29/1994 by the state of Hawaii’s Commissioner of Securities. According to the complaint, Mandell failed to register as a securities salesperson, and allegedly committed securities fraud. He signed the consent agreement and paid the $1,250 civil penalty, dismissing a preliminary order to cease and desist.

Ft. Lauderdale Elder Abuse Charges Against Roger Kroeger

January 22, 2019 | Silver Law Group

Roger Kroeger (CRD #1526864) is a former registered broker and investment advisor who was employed with Invest Financial Corporation (CRD #12984) of Fort Lauderdale, FL for 27 years. He was previously employed with Glenfed Brokerage Services (CRD #13648) of Glendale CA and Shearson Lehman Hutton Inc. (CRD #7506).

Although Kroeger still holds Series 7 and 63 licenses, he is not currently associated with a FINRA member firm. No current employment information is available. He has been in the industry since 1986.

6 Tips that Can Help Prevent Elder Fraud on silverlaw.com Kroeger has four disclosures in his record that appear to be for the same incident, with two filed on 11/17/2017. The first includes criminal charges for exploitation of the elderly for over $100,000, three counts of fraud, money laundering, and two counts of grand theft. The charges are currently listed as “pending.”

FINRA Bars Daniel Winger For Improper Use Of Customer Funds

January 22, 2019 | Silver Law Group

Daniel Noah Winger (CRD #1542674) is a former registered broker whose last employer was PFS Investments Inc. (CRD #10111) of Federal Way, WA. No current employment information is available. He began in the industry in 1986.

Three Individuals Charged by the SEC for Defrauding Elderly Clients on elderfinancialfraudattorneys.com Winger was discharged by PFS on 8/10/2018 after a customer alleged that he took checks from her and deposited them into his personal bank account.

A subsequent FINRA investigation dated 8/28/2018 found that the elderly customer gave him checks made out to “Dan Winger & Associates,” totaling $100,000. The customer was under the impression that the funds would be used for her benefit, including paying any commissions associated with her brokerage account, and for taxes that became due. However, Winger deposited those checks into his own bank account. Winger then spent the monies for his own personal use.

Broker Dexter Thomas Dies Leaving $9.2M In Customer Claims

January 22, 2019 | Silver Law Group

Dexter Leroy Thomas (CRD #1074222) is a formerly registered broker and investment advisor who was last employed with United Planners’ Financial Services Of America A Limited Partner (CRD #20804) of Dallas, TX. His previous employers include LPL Financial LLC (CRD #6413), National Planning Corporation (CRD #29604) and Invest Financial Corporation (CRD #12984), all of Dallas. He began in the industry in 1983, and passed away on August 4, 2018.

FINRA-Permanently-Bars-Barry-Hartman-From-Securities-Activity-for-Alleged-“Selling-Away”-Activities-300x209 Two days before his death, United Planners discharged Thomas after he revealed to the firm that he had engaged in “selling away,” privately borrowing money and making investment arrangements with several individuals outside of the firm’s auspices. Many of these individuals later became customers of United Planners. Thomas revealed that he conducted these transactions without notifying the firm, and the firm promptly terminated his employment.

The first of a total of fifteen claims was filed on 7/31/2018, just two days before his discharge from United Planners. The last claim was filed on 9/23/2018. These claims alleged either “unsuitable investments” or detailing monies borrowed but not returned without the firm’s knowledge or approval. Of the fifteen claims listed in BrokerCheck, eight request financial damages from $22,000 to $8.1 million, for a total of $9,260,000. These claims are all listed as “pending.”

Christopher Sinkula Subject Of Customer Disputes Totaling $3.7M

January 22, 2019 | Silver Law Group

Christopher David Sinkula (CRD #2001512) is a currently registered broker and investment advisor who is currently employed with Janney Montgomery Scott LLC (CRD #463) of Stuart, FL. His previous employers include Citigroup Global Markets Inc. (CRD #7059), also of Stuart, A. G. Edwards & Sons, Inc. (CRD #4) of St. Louis, MO and Blinder, Robinson & Co., Inc. (CRD #5096.) He has been in the industry since 1989.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-300x200 Sinkula is the subject of eleven disclosures, all customer disputes dating back to 1997. Three of these disputes were filed in 2018, and all three include “unsuitable investments” in their accounts. The disputes were filed on 8/1/2018, 4/23/2018 and 4/18/2018. The damages requested for these three claims totals $3,700,000, and all three are currently pending.

Two nearly identical customer disputes were filed on 10/13/2017 and 7/14/2017, alleging that Sinkula “made unsuitable investments in his account by creating a high concentration in energy stocks.” Both requested damages of $100,000, but were settled for $$24,750 and $22,900, respectively, and settled “in the interest of client relations and to avoid potentially lengthy and costly litigation.” Previous customer disputes are listed as “denied.”

FINRA Suspends Broker Yousuf Saljooki

January 22, 2019 | Silver Law Group

Zachary-Bader-Suspended-After-Multiple-Allegations-of-Churning-300x232 Back in June, we told you about Yousuf Saljooki (CRD #5045123), who was suspended by the state of Arkansas after failing to disclose an outstanding federal tax lien. This failure led to his discharge of employment by Worden Capital. He was previously discharged by SW Financial in 2017 for opening a branch office in another name and attempting to transfer his client list to the new brokerage. In the process, Saljooki also used an unauthorized email address for private client information.

In October, FINRA suspended Saljooki indefinitely after he failed to respond to a request for information. He is now suspended in all capacities from associating with any FINRA member. He has not yet requested termination of the suspension, and will eventually be permanently barred.

Did You Invest With Yousuf Saljooki at Worden Capital?