Securities Arbitration Lawyers Blog

Oscar Francis

August 8, 2018 | Silver Law Group

Oscar Francis (CRD #5094722) is a former registered broker and investment advisor last employed with MML Investors Services, LLC (CRD #10409) of Fort Lauderdale, FL. He was previously employed by AXA Advisors, LLC (CRD #6627), also of Fort Lauderdale, and Raymond James & Associates, Inc. (CRD #705) of Boca Raton, FL. No current employment information is available. He began working in the industry in 2006.

Former-New-York-Life-Broker-Jonathan-Williams-Barred-by-FINRA-as-a-Result-of-Outside-Business-Activities-300x200 Francis is the subject of two investigations stemming from the termination of his employment at MML. The company discharged him on 05/31/2017 “in connection with an investigation into an undisclosed outside business activity, potential selling away and an unauthorized non-securities life insurance transaction.” The first investigation was initiated on 04/21/2017 by the US Department of Justice, for allegations of selling away and outside business activities.

The second investigation was initiated on 10/23/2017 by the Department of Financial Services, State of Florida, regarding Francis’ termination for cause. No additional information is available.

FINRA Bars Broker Sean Brady For Possible Improper Sales Practices

August 8, 2018 | Silver Law Group

Former broker Sean Aaron Brady (CRD #4365173) has been barred by FINRA after multiple customer complaints and he was discharged by his employer. Brady was last employed by First Allied Securities, Inc. (CRD #32444) of St. Louis, MO, discharged on 10/20/2017. He was previously employed by FFP Securities, Inc. (CRD #16337), also of St. Louis, from 03/23/2001 through 05/30/2008. No current employment information is available.

Brady is the subject of six customer disputes, which share similar allegations:

Misrepresentation of net worth

FINRA Bars Former Broker William Brunner After Customer Complaints

August 8, 2018 | Silver Law Group

South-Florida-Broker-Brian-Michael-Berger-Permanently-Barred-by-FINRA-300x200-300x200 William George Brunner (CRD #2610348) is a former registered broker and investment advisor. His last employer was Investment Planners, Inc. (CRD #18557) of Huntington, NY. He was previously employed with First Midwest Securities, Inc. (CRD #21786) and Pointe Capital, Inc. (CRD #112097), also of Huntington. He resigned from Investment Planners on 05/31/2017, and has not been registered with any FINRA-affiliated broker since. No current employment information is available. Brunner joined the industry in 1995.

FINRA recently began an investigation into allegations that Brunner was engaging in excessive trading, and “use of discretion without written authorization in customer accounts” while he was a registered broker. He was requested to give on-the-record testimony in regard to the investigation, and declined to do so. Brunner was indefinitely barred from affiliation with any FINRA broker, effective 04/06/2018.

The investigation stems from a customer complaint to Investment Planners on 05/10/2018 that alleged “suitability, discretion, client unaware of amount of fees paid, client did not receive statements and did not sign active trading letters (client did not allege RR signed letters). Mar 2015 – Feb 2017.” The customer requested damages in the amount of $1,000,000. The firm requested phone records and a written response from Brunner, and he resigned on 05/12/2018. The dispute is still listed as “pending.”

SEC Charges Texas Pastor and Former Louisiana Broker with Money Laundering and Wire Fraud

August 8, 2018 | Silver Law Group

The elder financial fraud allegations reportedly cost elderly investors over $1M of retirement savings

Once a prominent Methodist pastor in Houston, Texas, Kirbyjon Caldwell is now charged by the SEC with numerous counts of money laundering and wire fraud. The charges are directly related to a scheme Caldwell and his partner, Gregory Alan Smith – a self-proclaimed financial advisor who was also charged – allegedly used to defraud elderly investors by selling them an interest in defunct, pre-Revolutionary Chinese bonds.

It is alleged that in 2013 and 2014, Caldwell and Smith singled out vulnerable investors to invest in bonds that had no more value than being collectible memorabilia – promising instead that they were worth millions.

Silver Law Group Investigates Perry Santillo Jr. of High Point Wealth Management

August 7, 2018 | Silver Law Group

Silver Law Group continues to investigate Perry Santillo Jr. (“Santillo”), founder and chief executive of High Point Wealth Management. According to a recent Investment News article, Santillo was barred by Maryland regulators for “dishonest and unethical trade practices,” that included selling unregistered securities by fraudulent means. Santillo allegedly solicited clients from an investment advisory business he acquired last year from its barred owner, Philip Rousseaux. Santillo faces almost $3.5 million in civil penalties and fines. Santillo acquired Everest Investment Advisors after its owner, Mr. Rousseaux, had his registration as an investment adviser revoked in March for deceptive securities sales practices. Mr. Rousseaux previously recruited clients through his popular infomercials featuring “The Money Guys.” Santillo, according to the order barring him, in November began soliciting former Everest clients through e-mails explaining how their transition would work in regards to their investments. He would then advise them to sell securities and transfer assets to a self-directed IRA. He also asked client to sell their annuities in face-to-face meetings. Then, Santillo would recommend the clients invest in unsecured promissory notes that were used to finance his own companies.

S What-Keeps-a-Ponzi-Scheme-Running-300x200 antillo, Chris Parris and others are accused of running a massive Ponzi scheme and paying former stockbrokers and investment advisors to retire and send their clients to their companies. Silver Law Group is assisting investors who were encouraged to liquidate retirement accounts and other investments to invest in the First Nationle Ponzi scheme.

Silver Law Group is representing investors in claims against their former advisors who recommended that their clients invest with Santillo, Chris Parris, Nationle or United RL. Investors allege that their former advisors failed to inform them that their stockbrokers failed to tell them that they had received money for the recommendation or that their financial advisor had failed to conduct reasonable due diligence into Santillo and his partners.

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:

Broker Cindy Chiellini Subject Of Three Customer Disputes

August 7, 2018 | Silver Law Group

Cindy Lucille Porto Chiellini (CRD #1015592) is a currently registered broker with Centaurus Financial, Inc. (CRD #30833) of Lexington, SC, since 2015. Previously, she worked with J.P. Turner & Company, L.L.C. (CRD #43177), Gunnallen Financial, Inc. (CRD #17609) and First Allied Securities, Inc. (CRD #32444), all of Lexington. She has been in the industry since 1984.

Securities-Industry-Lingo-May-Interfere-With-Financial-Advising-300x161 Chiellini has three recent customer disputes in her long financial career, but no disciplinary actions. The first dispute was filed on 05/21/2018, from the beneficiaries of a deceased client. The claimants alleged that Chiellini recommended unsuitable investments that resulted in a loss when they decided to liquidate. They have requested damages of $100,000. Chiellini denies the allegations, and states that she not only reviewed the investments with her original client before they were purchased, but also discussed options with the beneficiaries after the client passed away. The beneficiaries decided to liquidate rather than wait, and signed statements that they understood the loss involved by immediate liquidation instead of waiting for these securities to reach full maturity. This claim is currently pending.

The second dispute was filed on 4/17/2018, alleging that his account had “less liquidity” than he told Chiellini he wanted, and lost principal when he sold. The client requested damages of $170,000. Chiellini’s response denied the accusations. After explaining the investment strategies and providing relevant documentation, as well as receiving the customer’s signature on forms certifying that he understood everything, the customer took the advice of a non-licensed securities and insurance individual to liquidate everything over the protests of Chiellini and Centaurus Financial. After the firm examined the evidence, they denied the claim.

Bank Of America Sued Over Ponzi Scheme

August 7, 2018 | Silver Law Group

Following the SEC charging five individuals with fraud related to a Ponzi scheme, Bank of America (“BOA”) has now been sued over its involvement with the First Nationle scheme. The class-action suit on behalf of multiple investors who lost money alleges that BOA provided more than 100 accounts for the individuals to perpetuate their scheme. Others charged in the scheme include Perry Santillo, Chris Parris, Paul LaRocco, Percipience and United RL.

Ponzi-Schemes2-300x150 According to the complaint, the brother and sister that sued to recover losses from their late father’s investment allege that the fraudsters “could not have perpetuated their scheme without the knowing assistance of their primary banking institution, Bank of America, which lent the scheme an air of legitimacy and provided critical support, including at times when the scheme would have otherwise collapsed.”

After promising to invest the monies into profitable and dividend paying companies, they used the funds for lavish personal expenses and to pay “dividends” to other investors. The bank is accused of failing to catch their suspicious activity, which included transfers of large amounts of cash into accounts with small, negative or even non-existent balances, and then transferring the cash out in the same week. The money was transferred to their personal accounts, or to that of some of the investors. This fraud occurred over a period of time beginning in or about 2011. By not alerting authorities or putting a stop to the fraudulent activity, BOA assisted in the perpetuation of the scheme.

Donald Fowler Charged With Excessive Trading And Churning

August 7, 2018 | Silver Law Group

Broker Donald Fowler (CRD #4989632) is a broker currently registered with Worden Capital Management LLC (CRD #148366) of Rockville Center, New York. He has been with Worden since 2014. He was previously employed by J.D. Nicholas & Associates, Inc. (CRD #44791) of Syosett, NY, and American Capital Partners, LLC (CRD #119249) of Wantagh, NY. He has been in the industry since 2005.

sec-300x198 Fowler, along with another Worden broker, is the subject of an SEC complaint regarding excessive trading, churning, and what the SEC calls an “in-and-out” trading strategy. This generated bigger fees for himself and the other broker who was charged, but caused clients to suffer significant losses as a result.

Fowler is alleged to have recommended the strategy to his 27 clients at now-defunct J.D. Nicholas & Associates without any reason to believe it would benefit any one of them. He knew, or should have known, that the cost structure and nature of the trading would cause them all to lose money. Furthermore, at least three of his 27 accounts were the subject of “churning” (excessive training to generate more commissions and fees.) Both of these practices violated antifraud provisions in federal trading laws. This action is listed as “pending.”

Worden Capital’s Broker Gregory Dean Charged With Churning

August 7, 2018 | Silver Law Group

Stockbroker-Misconduct-1-300x150-300x150 Gregory Dean (CRD #4922996), currently employed with Worden Capital Management of Rockville, NY (CRD #148366) is the subject of multiple disclosures, mostly customer complaints. He is also the subject of a civil SEC complaint and one regulatory complaint, going back to 2013.

Dean’s previous employers include:

D. Nicholas & Associates, Inc. (CRD #44791) of Syosett, NY, from 01/16/2007 through 11/24/2014