Securities Arbitration Lawyers Blog

FINRA Bars Broker John Greg Schmidt After Misappropriation Allegations

June 28, 2018 | Silver Law Group

John Greg Schmidt (CRD #708094) is a former registered stockbroker and investment advisor whose last known employer was Wells Fargo Advisors Financial Network, LLC (CRD #11025) in Dayton, OH. He is also known as “Greg Schmidt” or “John Gregory Schmidt.”

His previous employers include Stifel, Nicolaus & Company, Incorporated (CRD #793), also of Dayton, OH; First Union Securities, Inc. (CRD #19616) of St. Louis, MO; and First Union Capital Markets Corp. (CRD #6124) of Charlotte, NC. Schmidt began his industry career in 1980, but is not currently registered with any FINRA broker.

Schmidt is currently the subject of several disclosures:

National Securities Corporation and Restoration Robotics, Inc. Subject of Class Action

June 28, 2018 | Silver Law Group

A class action has been filed against Restoration Robotics, Inc. (“HAIR”), National Securities Corporation (“National Securities”) and others. The complaint alleges that Restoration Robotics negligently issued untrue statements of material facts in, and omitted to state material facts required to be started from, the prospectus issued in connection with the Initial Public Offering (“IPO”). At the time of the IPO, Restoration Robotics sold approximately 4 million shares at a price of $7.00 per share. Restoration Robotics stock has dropped dramatically trading under $3.00 a share on June 22, 2018.

National Securities served as an underwriter for the Company’s IPO agreeing to purchase 2,145,000 shares of the Company common stock, exclusive any over-allotment option. National Securities previously served as Restoration Robotics investment banker raising several million dollars in a Reg D offering in 2016. According to the complaint, National Securities collected fees from commissions and discounts in excess of $1,100,000 in the IPO.

According to the class action complaint, Restoration Robotics was incorporated in 2002 under the laws of the State of Delaware. At the time of the IPO, the Company also had three wholly-owned subsidiaries: (i) Restoration Robotics, Inc. Limited, (ii) Restoration Robotics Europe Limited, Incorporated, and (iii) Restoration Robotics Korea Yuhan Hoesa, Incorporated.

6 Tips that Can Help Prevent Elder Fraud

June 27, 2018 | Silver Law Group

You can put these into action immediately

Nobody thinks they will be the victim of fraud, but it happens every day – even to the smartest people. This is why it is always important to be vigilant when it comes to anything involving money. Scammers will never stop scamming, but we don’t have to play into their hands.

Seniors, in particular, have to be aware of the many ways criminals will try to get their money. For people in this age group or those who want to protect parents or grandparents, these tips can help:

FINRA Permanently Bars Kimberly Pine Kitts After Allegations

June 22, 2018 | Silver Law Group

Kimberly Pine Kitts (CRD #2768200) is a previously registered broker and investment advisor, last employed with Royal Alliance Associates Inc., (CRD #23131) from 2004 through 2017. In the industry since 1993, she was previously employed with ING Financial Partners, Inc. (CRD #2882) in Des Moines, IA, and Forum Fund Services, LLC (CRD #46106) in Portland, ME, among others.

Kitts was discharged from Royal Alliance on 11/15/2017 when the firm received a letter from the attorney of one of her clients. This letter alleged “conversion or misappropriation of funds” on Kitts’ part.

On 12/8/2017, FINRA requested information from Kitts regarding her termination from Royal Alliance. She failed to respond to the request, and was suspended for three months. When she failed to request her suspension to be ended, FINRA permanently barred Kitts, effective 03/12/2018. Kitts is not allowed to have any association with any FINRA member in any capacity.

Jeffrey Hawley and Wells Fargo

June 22, 2018 | Silver Law Group

A current client dispute relating to Jeffrey Hawley (CRD #1131302) has been filed against Wells Fargo. Hawley is a registered broker currently with Wells Fargo Clearing Services, LLC (CRD #19616). Hawley is also a registered investment advisor with the same company.

The customer dispute centers on Puerto Rican bonds, which were popular to sell to investors for their high returns. When the island declared bankruptcy in May of 2017, many investors accounts decreased dramatically.

The client alleges that Hawley recommended purchasing these bonds in 2012, and to “thereafter hold the bonds.” The case is currently listed as pending.

Broker Adam Goodman Subject of FINRA Arbitration Claims

June 22, 2018 | Silver Law Group

Adam Goodman (CRD #2263780) is a currently registered broker and investment advisor employed by Stoever, Glass & Company Inc. (CRD #7031) of Boca Raton, FL.

His previous employers include Herbert J. Sims & Co. Inc. (CRD #3420) and Wien Securities Corp. (CRD #10467.) He has been in the industry since 1994 moving from H.J. Sims to Stoever in 2018.

Goodman has three customer disputes in his career, with the most recent filed on April 3, 2018. The customer alleges “high pressure sales,” unsuitable investments, fraud and negligence, and is requesting damages in the amount of $25,000.

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.

Keith D’Agostino

June 21, 2018 | Silver Law Group

Broker Keith Michael D’Agostino (CRD #2837860, also spelled “Dagostino”) is currently registered with Aegis Capital Corporation (CRD #15007) in Melville, NY since 2014. He has been in financial services since 2002.

D’Agostino’s most recent complaint was filed on May 11, 2017, with the client alleging “poor performance.” The client requested damages of $170,000 and Aegis settled this dispute for $92,000.

His only prior dispute was filed on August 12, 2013, while working for Stifel, Nicolaus & Company, Incorporated (CRD #793). The client alleged that D’Agostino engaged in “breach of fiduciary duty, negligence, common law fraud, violation of Florida law, and unjust enrichment.” The time frame for these allegations was June 2010 through January 2013. The client requested damages of $725,000, the company settled for $220,000.

FINRA Examines Claim Against Aegis Broker James Mariani For Negligence

June 21, 2018 | Silver Law Group

James J. Mariani (CRD #2932631) is a currently registered broker with Aegis Capital Corp. (CRD #15007) of Bayside, New York. He has been with Aegis for less than one year. His previous employers include:

National Securities Corporation (CRD #7569) of Mineola, NY
First Montauk Securities Corp. (CRD #13755) of Port Washington, NY

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)