Securities Arbitration Lawyers Blog

Christopher P. Anthony, Formerly of Rhodes Securities, Under Investigation for a $2 Million Customer Dispute

June 6, 2017 | Silver Law Group

Silver Law Group is investigating former Texas-based Rhodes Securities, Inc. (CRD# 19610) broker Christopher P. Anthony (CRD# 1157930) after a customer filed a $2 million FINRA arbitration against him.

According to Anthony’s FINRA BrokerCheck report, a customer filed a FINRA arbitration complaint in January 2017 against Anthony alleging breach of fiduciary duty, negligence, breach of contract and damages in the amount of $2 million.

Another customer dispute was filed in August 2016 alleging unsuitable investments, churning, failure to supervise between the early 2014 to Spring 2015. The complaint alleges $100,000.00 in damages.

Former Puerto Rico-based Popular Securities Broker Manuel Angel Mejia-Gomez Under Investigation

June 6, 2017 | Silver Law Group

Silver Law Group is investigating former Puerto Rico-based Popular Securities, LLC (CRD# 8096) broker Manuel Angel Mejia-Gomez (CRD# 2259727) after FINRA suspended him.

According to Mejia-Gomez’s FINRA BrokerCheck report, FINRA suspended and fined Mejia-Gomez in December 2016 for three months and fined him $15,000. According to Mejia-Gomez’s BrokerCheck report, he exercised discretionary authority in customers’ accounts. On multiple occasions, Mejia-Gomez liquidates securities in the account of a customer in order to meet the customer’s cash flow obligations.

The FINRA suspension follows Mejia-Gomez’s resignation from Popular Securities in January 2015. Popular Securities permitted Mejia-Gomez to resign because he allegedly conducted unauthorized trades to amass commissions. Prior to that, in December 2014 a complaint alleging unauthorized trading against Mejia-Gomez was settled.

New York-based Beech Hill Securities Broker Frank Hamrak Under Investigation Over Unsuitability Allegations

June 6, 2017 | Silver Law Group

Silver Law Group is investigating New York-based Beech Hill Securities (CRD# 24771) broker Frank Hamrak (CRD# 1385077) after a customer complaint filed against him alleging unsuitable recommendations settled.

According to Hamrak’s FINRA BrokerCheck report, a customer complaint filed in November 2016 against Hamrak settled. The complaint alleged unsuitability and settled for $127,000.

In addition to the settled complaint, Hamrak has six other disclosures on his BrokerCheck report.

Edward Jones Broker Austin Wayne Morton Accused of Elder Fraud Involving 82-Year Old Client Diagnosed with Dementia

June 2, 2017 | Silver Law Group

The financial advisor’s alleged financial stress stemmed from gambling losses that exceeded his annual income.

The Financial Industry Regulatory Authority (FINRA) is currently investigating former St. Louis, MO- and Oklahoma-based broker Austin Wayne Morton after his dismissal from his member firm, Edward Jones, under suspicion of elder fraud.

According to FINRA, in September 2016, Morton allegedly accompanied his 82-year-old former client diagnosed with dementia to the bank to assist him in withdrawing over $20,000 in cash. Morton then allegedly left with $20,000 of the client’s money. The following month, the elderly client reportedly agreed to provide Morton with a loan for $6,000 to pay for medical expenses. The medical expenses, however, were never actually incurred.

Barry Franklin Connell Has Been Barred by FINRA and Charged by the SEC for Allegedly Stealing $5M from Elderly Clients

June 2, 2017 | Silver Law Group

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Connell is reported to have stolen $5 million from his elderly clients

In January, the Financial Industry Regulatory Authority (FINRA) permanently barred Barry Franklin Connell from working as a broker. The decision came after an investigation reported that he made numerous transfers from client accounts without authorization. FINRA first suspended Connell but had no choice but to ban him after he declined to offer the agency information it requested.

Within weeks of FINRA’s ruling, Connell was charged by the Securities and Exchange Commission (SEC) with stealing money from clients. Allegedly, the funds he was transferring were being used to settle a private lawsuit. The SEC alleges that for about a year, Connell moved money between accounts – many of which belonged to elderly clients – and also issued wire transfers and checks from those accounts to third parties.

Elder Financial Fraud News Round-Up

May 31, 2017 | Silver Law Group

Mormon seniors reportedly victimized in San Diego investment scam, Ohio broker admits guilt in theft of more than 500k from senior client, and Oklahoma begins educational initiative

Throughout the U.S., seniors are experiencing perhaps a higher prevalence of fraud than ever before– and scammers are getting increasingly inventive in the ways in which they target elderly victims. From claims of fake prize money, to financial advisor fraud and investment scammers targeting elderly churchgoers, no seniors are truly safe from fraud unless they educate themselves about major scams and significantly increase their financial literacy. Here’s a roundup of some of the latest elder fraud news from around the country.

Oklahoma increases senior education efforts in an attempt to equip the elderly with fraud-fighting tools

SEC Takes Action to Reduce Instances of Senior Fraud

May 31, 2017 | Silver Law Group

New rules are intended to assist financial institutions in reducing the amount of investment fraud targeting seniors and other vulnerable investors.

Senior investment fraud. Elder fraud. Elder financial abuse. Scamming older investors. No matter what it is termed, this unfortunate activity takes place at a far greater rate – with far greater losses – than necessary. In fact, a 2011 MetLife study found that the losses of elder financial abuse victims are at least $2.9 billion annually.

Why is elder financial fraud so prevalent?

How to Spot Elder Financial Fraud (and How Ethical Financial Advisors Should Act to Stop It)

May 26, 2017 | Silver Law Group

Advisors and other trusted professionals have an ethical duty to stop senior financial fraud

Elder financial fraud is an increasingly serious issue in the U.S. As more Americans become seniors – at the rate of about 10,000 a day – new victims across the country are feeling the consequences. This means that whether you’re a financial advisor, accountant, or lawyer with elderly clients, or you simply have older friends or family members, it’s essential to understand the warning signs of senior financial fraud. By doing so, you may be able to help protect the seniors you care about from serious monetary losses as well as the associated emotional damage when someone becomes a victim.

FINRA has made several recent changes in order to help advisors combat senior fraud

Elder Financial and Investment Fraud Continues to Grow at an Alarming Rate

May 26, 2017 | Silver Law Group

Research suggests nearly 40% of American seniors may experience financial abuse

Across the U.S., millions of seniors each year become the victims of fraudulent financial and investment scams. In fact, one recent survey reported that 37% of senior caregivers said their client had been a victim of financial fraud or abuse – and alarmingly, 40% of caregivers surveyed said that their client had been victimized more than once. The perpetrators, many of whom are family members, often take advantage of a senior’s reduced mental capacity in order to persuade or pressure them into making serious financial mistakes.

To fix this problem, a variety of organizations, including state governments and nonprofits like AARP, have started initiatives to expand education for seniors, improve awareness and reporting among financial and healthcare workers, and increase the severity of punishment for those found guilty of elder fraud.

FINRA Bars Former Kovack Broker For Allegedly Naming Himself as Inheritor of 91-year-old Customer’s Condo

May 25, 2017 | Silver Law Group

FINRA has barred Fort Lauderdale, Florida-based broker Douglas W. Studer (CRD# 4440047) for refusing to testify on the record in a FINRA-led investigation into whether Studer violated his employing firm’s policy by being named in an elderly customer’s estate documents to inherit the customer’s waterfront condominium.

Studer was employed by Kovack Securities Inc. (CRD# 44848) until Kovack terminated him in July 2016, according to the Acceptance, Waiver and Consent (“AWC”) entered into between Studer and FINRA.

According to the AWC, FINRA began investigating Studer on August 2, 2016. Studer was asked to record testimony, but he refused to appear. Allegedly, Studer appeared on his 91-year-old customer’s estate documents and was to inherit the elderly customer’s waterfront condominium.