Securities Arbitration Lawyers Blog

Silver Law Group is Investigating William Harrison of Stifel Nicolas & Company

March 5, 2018 | Silver Law Group

Stifel Nicolaus & Company broker/adviser William Harrison is involved in a pending customer dispute. William Harrison has spent 29 years in the securities industry and has been registered with Stifel Nicolaus & Company in Boca Raton, Florida since 2009. Palm Beach County is home to a large retirement community and FINRA arbitration claims are generally heard in FINRA’s Boca Raton office.

In January 2018, an arbitration claim was filed alleging William Harrison, while employed at Stifel Nicolaus & Company, committed common law fraud, negligently misrepresented material facts, breached his fiduciary duty, and acted negligently in connection to investments in common and preferred stock. The customer is seeking $100,000 in damages in the pending complaint.

Contact Our Firm if You’ve Invested with William Harrison

Silver Law Group is Investigating UBS Financial Services Broker James Dillon for Potential Unsuitable Recommendations Relating to Puerto Rico Municipal Bonds

March 5, 2018 | Silver Law Group

Silver Law Group is investigating claims against UBS Financial Services (“UBS”) New York-based stockbroker James Dillon (“Dillon”). According to the Financial Industry Regulatory Authority (“FINRA”), Dillon’s FINRA BrokerCheck record shows a pending customer dispute alleging claims of unsuitable concentration in connection with the purchase of Puerto Rico municipal bonds. The damages alleged in the complaint are $500,000.

Silver Law Group is representing investors in claims against UBS and several other brokerage firms relating to the sale and concentration of portfolios in Puerto Rico municipal bonds. Brokers recommended Puerto Rico bonds due to their high coupons without disclosing to investors the risks associated with the Puerto Rican economy and the on-going recession on the island. Many elderly and conservative investors lost substantial portions of their portfolios when the Puerto Rico municipal bonds collapsed in value causing many to lose their entire retirement savings.

Silver Law Group is representing customers of brokerage firms in securities arbitration claims for losses in Puerto Rico municipal bonds alleging that the customers were misled about the risks of the bonds, overconcentration, breach of fiduciary duty, and excessive trading.

Wells Fargo Under Investigation for Abuse of Customer 401(k) Accounts

March 2, 2018 | Silver Law Group

Wells Fargo has disclosed a federal investigation into sales practice violations in customer 401(k)s after a whistleblower cited sales problems in customer accounts.

Multiple potential violations are disclosed including improper referrals, excessive fees and undisclosed conflicts of interest. In the current bull market, many investors did not appreciate the fees being charged as their accounts were profitable and fees can be difficult to calculate.

Silver Law Group represents institutional and retail investors in claims for portfolio mismanagement, stockbroker misconduct and investment fraud. If you believe your portfolio was mismanaged, excessively traded or your financial advisor purchased esoteric or high cost alternative investments, call us to discuss your legal rights toll-free (800) 975-4345 or e-mail at SSilver@silverlaw.com.

Silver Law Group is Investigating Joseph Cotter of Petersen Investments

March 2, 2018 | Silver Law Group

Former North Carolina-based Petersen Investments broker Joseph Cotter has been named in a FINRA Investigation and is currently not affiliated with any broker-dealer firm.

Joseph Cotter was most recently registered with Petersen Investments in Charlotte, North Carolina (2016-2017). Previous registrations include Next Financial Group in Charlotte, North Carolina.

According to his BrokerCheck Report, in May 2017, Joseph Cotter voluntarily resigned from his position at Petersen Investments while under FINRA investigation. In April 2017 FINRA disclosed that it was “forwarding Examination 20160493163 to their Enforcement Department.” In 2016, Cotter was discharged from his position at Next Financial Group after “an internal review of the trading activity in a customer’s accounts and found the level of trading activity to be excessive in light of the customer’s profile and the character of the account.” An arbitration claim against Next Financial Group recently settled for over $300,000 involving Mr. Cotter.

Silver Law Group is Investigating Thomas Lawrence of Ameritas Investment Corp.

March 2, 2018 | Silver Law Group

Silver Law Group is investigating financial advisor Thomas Lawrence of Chapel Hill, Tennessee. FINRA recently brought a regulatory complaint against Lawrence regarding allegations that he borrowed $39,000 from an elderly customer, in violation of FINRA rules and he has failed to repay the loan.

Thomas Lawrence was a financial advisor and registered representative of Ameritas Investment Corp. from 2006 to December 2016. He worked at a branch office in Chapel Hill, Tennessee. He also works with the Lawrence Financial Group.

Contact Our Firm if You’ve Invested with Thomas Lawrence

Silver Law Group is Investigating Mark Perry of Royal Alliance Associates, Inc.

March 2, 2018 | Silver Law Group

Silver Law Group is currently investigating former Royal Alliance Associates, Inc. financial advisor Mark Perry (CRD# 1219294) regarding unsuitable investment recommendations to elderly clients. Perry was registered with Independent Financial Group, LLC in Mt. Pleasant, South Carolina and with Cambridge Investment Research, Inc. in Mt. Pleasant, South Carolina. Previously, Perry was registered with Royal Alliance Associates, Inc. in Mt. Pleasant, South Carolina from 2003 to 2015, when he was terminated regarding, “Under internal review for violations of firm’s email correspondence policy. In connection with the firm’s review of a customer complaint, the firm reviewed email correspondence from Mr. Perry to the customer that contained promissory and/or predictive statements, in violation of the firm policy.”

In September 2017, Perry consented to the FINRA sanctions and to the entry of findings that he made unsuitable investment recommendations to four elderly, retired customers, which caused them collectively to see realized and unrealized losses of approximately $200,000. FINRA found that Perry over concentrated the customers’ accounts in precious metal sector securities, and that he recommended that the customers purchase and hold leveraged mutual funds and/or Exchange Traded Funds (ETFs) in their accounts for extended time periods of up to 963 days, which was unsuitable for his customers. Additionally, FINRA found that Perry falsified the account records of the four elderly customers referenced above by misstating each customer’s risk tolerance in order to recommend that the customer purchase high-risk securities. FINRA also found that Perry sent emails to a customer that mislead and made promissory statements about the investments in the customer’s account. Perry also failed to disclose two customer complaints regarding trading losses to his member firms. Perry was sanctioned to 18 months suspension, which will end in March 2019.

Contact Our Firm if You’ve Invested with Mark Perry

Angel Aquino of Morgan Stanley Claims for Puerto Rico Bonds

February 27, 2018 | Silver Law Group

Investment broker Angel Edgardo Aquino-Velez (CRD#: 2687333) is no longer working as a broker, according to FINRA. Velez was previously registered as a broker, with the last place of employment listed as Morgan Stanley (CRD# 149777). His name is also listed as “Angel Edgardo Aquino,” “Angel E AquinoVelez” and, “Angel Edgardo AquinoVelez.” Velez worked for Morgan Stanley from 2010 through 2017, for Merrill Lynch from 2006 through 2009, and UBS Financial Services, Inc./UBS Financial Services, Inc. of Puerto Rico from 2000 through 2006. Since leaving Morgan Stanley in 2017, Velez is not listed as working as a broker, or in any financial services capacity requiring registration.

Silver Law Group represents other investors in claims against Morgan Stanley relating to Angel Aquino. Since 2001, Velez has had a number of customer disputes have been filed against him. Many were settled by Merrill Lynch during his tenure of employment. FINRA arbitration claims filed during Velez’s tenure at Morgan Stanley are still open, with the most recent involving “unsuitability with respect to Puerto Rico investments,” from 2013 to 2017, among other things (“inter alia.”) No money damages are specified in the latest dispute, but previous disputes dating back to July of 2016 have a combined outstanding total of $17,559,000. Morgan Stanley agreed to pay one customer dispute the amount of $80,000, resolving a securities arbitration of “unsuitability with respect to the Puerto Rico closed-end fund investment – 2012 to 2013.” Customer complaints include “unsuitability” and “misrepresentation” in relation to investments Velez was involved with.

Contact Our Firm if You’ve Invested with Angel Aquino

Christopher Robert Hickman, formerly of Cetera Advisors, LLC.

February 27, 2018 | Silver Law Group

FINRA suspended Christopher Robert Hickman in June of 2017 for six months. This suspension is a result of Hickman’s violations of NASD Rule 2310, and FINRA Rules 2111 and 2010, regarding the unsuitable trading of Unit Investment Trusts, or “UITs.” Hickman neither denied nor confirmed the findings, and consented to the sanctions, which included a five-month suspension and a fine of $5,000, and included customer restitution of $115,989.75 (with interest.) Hickman was in the Delray Beach, Florida office of Cetera.

Hickman recommended these UITs to his customers and sell them within a year of purchase. The UITs in question had a 24-month maturity, and come with significant up-front charges, up to 3.95%. The average holding period for his customers was 136 days. After their sale, Hickman again recommended his customers purchase the same types of UITs with the proceeds and sell them after less than a year, repeating the process. Six of his customers suffered losses of approximately $115,989.75.

During his tenure at Cetera Advisors, LLC., Hickman was also the subject of several customer disputes, most of which were settled, and one denied. The last customer dispute, in April of 2017, involved “breach of fiduciary duty, violation of FINRA rules, negligence, breach of contract, and elder abuse,” and was settled for $15,000.

LJM Preservation and Growth Fund (LJMIX) Securities Lawsuit Investigation

February 13, 2018 | Silver Law Group

Silver Law Group is investigating investor claims for possible securities laws violations of LJM Preservation and Growth Fund (Stock Symbol: LJMIX).

The LJM Preservation and Growth Fund (“LJMIX”) is a mutual fund that is marketed and sold with the investment goal of preserving capital even in down markets. The mutual fund, allegedly, attempts to preserve its investors’ capital by using put option spreads as a form of mitigation risk.

The once-$800 million fund lost more than 80 percent of its value between February 2-7, 2018. On February 8, 2018, LJMIX announced that it would not be accepting new investments into the mutual fund. According to a letter published by the mutual fund, LJMIX liquidated all its open positions and the mutual fund currently only holds cash.

Scott Silver Participates in the University of Miami School of Law Class Action Forum

February 13, 2018 | Silver Law Group

On December 8, 2017, the University of Miami School of Law held its annual class action forum. Of particular interest was hot topics in class action and mass torts plus a keynote speech from the attorney representing many NFL players in litigation relating to concussions.

Scott Silver is a 1996 graduate of Miami Law School and an active member of the Law School alumni program. In 2016, Silver Law Group was instrumental in helping the University of Miami Investor Rights Clinic receive a $107,000 Cy Pres Award from one of our class actions relating to the U.S. Pension Trust Corp. fraud which resulted in a substantial recovery for our clients.

The Investor Rights Clinic is an important program which teaches students about securities arbitration while helping investors, who may not be able to find counsel, pursue FINRA arbitration claims for securities and investment fraud. Scott Silver is a frequent lecturer at investor rights clinics around the country including University of Miami and Albany Law School in New York.