Securities Arbitration Lawyers Blog

Silver Law Group Investigates Former Illinois Morgan Stanley Broker Terminated for Outside Business Activities

May 25, 2017 | Silver Law Group

Silver Law Group is investigating former Deerfield, Illinois-based Morgan Stanley Smith Barney broker Brian C. Sak (CRD# 3259830) after he was terminated for allegations that he placed customers in unapproved investments.

According to Sak’s FINRA BrokerCheck Report, he was terminated on May 17, 2016 by Morgan Stanley (CRD# 149777) due to concerns related to outside real estate investments with a client that was not appropriately disclosed to Morgan Stanley.

Additionally, Sak’s has two other disclosures in the form of FINRA arbitrations. The FINRA arbitrations, like Morgan Stanley, allege that Sak recommended investing in outside real estate investment opportunities. In total, the two FINRA arbitrations allege $600,000 in damages.

Former Tennessee Woodbury Broker Under Investigation Over Allegations of Outside Business Activities

May 25, 2017 | Silver Law Group

Silver Law Group is investigation former Tennessee-based Woodbury Financial Services, Inc. broker David A. Ross (CRD# 3021782) for allegedly failing to disclose an outside business activity and accepting loans from firm clients.

According to Ross’s FINRA BrokerCheck report, Woodbury Financial Services (CRD# 421) discharged Ross in April 2016 for the allegations listed above as well as other undisclosed firm violations.

Ross has seven other disclosures on his FINRA BrokerCheck report. Of those other seven, six of them are tax liens totaling over $250,000.

Silver Law Group Investigates FINRA-barred Florida Broker Who Allegedly Sold Away Customers

May 25, 2017 | Silver Law Group

Silver Law Group is investigation former Florida-based Fidelity Brokerage Services LLC (CRD# 7784) broker Michael J. DeBoer (CRD# 2114067) for allegedly conducting outside business activities without notifying Fidelity and losing his customers a great deal of money in the process.

According to DeBoer’s FINRA BrokerCheck, FINRA permanently barred DeBoer in May 2016 for allegedly recommending two customers collectively invest $200,000 in securities offered by a software development company. In exchange for the referrals, the company allegedly gave DeBoer $32,000 in compensation, while the customers ultimately lost all of their investments.

Additionally, the Acceptance, Waiver & Consent (“AWC”), found that DeBoer marketed to his customers and other potential investors the services of an entity that provided separately-managed futures trading accounts. The AWC states that DeBoer referred approximately 28 people to the entity and received $70,000 in return for his referrals. Most of the referred individuals lost a substantial amount of the money invested.

Misconduct-Riddled Former Ohio-based Broker Under Investigation Amidst Pending FINRA Arbitrations

May 25, 2017 | Silver Law Group

Silver Law Group is investigating former Ohio-based Concorde Investment Services, LLC (CRD# 151604) broker Larry S. Werbel (CRD# 828351) for three pending FINRA arbitrations and a litany of disclosures on his FINRA BrokerCheck report.

According to Werbel’s FINRA BrokerCheck report, Werbel has three pending FINRA arbitrations filed in the last four months that allege unsuitable recommendations, failure to supervise, fraud, breach of duty of loyalty, and negligence for an aggregate amount of over $1.25 million. At least one of the complaints alleges securities violations spanning back to Werbel’s employment with LPL Financial LLC (CRD# 6413) from February 2009 to February 2011.

FINRA’s BrokerCheck tool is a valuable way to examine a broker’s background. The investor tool discloses FINRA arbitrations that have been settled, are pending or have been denied; bankruptcies, civil judgments and tax liens; employment separations and other discharges; criminal proceedings; and regulatory actions. According to an InvestmentNews report, only about 12 percent of financial advisors have any type of disclosure events on their records.

Former Connecticut Broker Warren M. Rockmacher Under Investigation for Unsuitable Recommendations at Investacorp

May 25, 2017 | Silver Law Group

Silver Law Group is investigating former Connecticut-based Investacorp, Inc. (CRD# 7684) broker Warren M. Rockmacher (CRD# 2005652) after FINRA suspended and then permanently barred the broker.

Rockmacher currently has a FINRA arbitration pending that alleges unsuitable recommendations and misrepresentation with damages in the amount of $75,000.

On May 12, 2016, FINRA suspended Rockmacher for failing to comply with an arbitration award or settlement agreement or failed to respond to a FINRA request to provide information on the status of compliance. Two weeks later, FINRA barred Rockmacher completely from the securities industry.

Silver Law Group Investigates Aventura, Florida-based Michael R. Smith After UBS Termination

May 25, 2017 | Silver Law Group

Silver Law Group is investigating former UBS Financial Services Inc. (CRD# 8174) broker Michael R. Smith (CRD# 428405) after UBS terminated the broker.

UBS terminated Smith, based out of Aventura, Florida, in October 2015 after he failed to disclose to the firm that he was named trustee for the trust of an unrelated client on two occasions.

In May 2016, FINRA barred Smith from the selling securities after Smith failed to respond to a FINRA request for information.

Silver Law Group Investigates Former Law Vegas Broker Over Recent Cocaine-related Criminal Charges

May 25, 2017 | Silver Law Group

Silver Law Group is investigating former PFS Investments Inc. (CRD# 10111) Charles Little (CRD# 2632450) for felony criminal charges involving cocaine.

According to Little’s FINRA BrokerCheck report, Little was charged with five felony criminal charges on February 19, 2015. The charges are all drug-related, including selling and trafficking cocaine.

Upon discovering the felony cocaine charges, PFS discharged Little in May 2015, according to the FINRA BrokerCheck report. When Little failed to responded to FINRA’s request for information, FINRA permanently barred Little.

Former Pennsylvania-based Raymond James Broker Under Investigation for Allegations of Accepting Undisclosed Loans From Customers

May 25, 2017 | Silver Law Group

Silver Law Group is investigating former Pennsylvania-based Raymond James Financial Services, Inc. (CRD# 6694) Jeffrey S. Ingros (CRD# 2091822) after FINRA permanently barred him.

The most recent trouble with Ingros came in February 2016 when Raymond James permitted Ingros to resign after Ingros disclosed to the firm that he accepted loans from customers without prior written approval from the firm and failed to disclose those loans on the firm’s annual compliance attestations, according to his FINRA BrokerCheck report.

Not even a month later, Ingros entered into an Acceptance, Waiver & Consent (“AWC”) consenting to sanctions and the entry of findings that he refused to appear for on-the-record testimony requested by FINRA during its investigation into the aforementioned allegations as well as allegations that he engaged in outside business activities. FINRA permanently barred Ingros for his failure to appear.

Former Coral Gables, Florida-based UBS Broker Under Investigation for Allegations of Unauthorized Trading

May 25, 2017 | Silver Law Group

Silver Law Group is investigating former Coral Gables, Florida broker James P. Scullin (CRD# 1577362) for unauthorized trading in customer accounts among other allegations.

According to Scullin’s FINRA BrokerCheck report, UBS Financial Services Inc. (CRD# 8174) terminated Scullin when UBS learned that he actively traded in an undisclosed commodities account outside UBS, exercised discretion without written authorization in violation of firm policy, and entered an unauthorized trade.

According to an Acceptance, Waiver & Consent (“AWC”) entered into between FINRA and Scullin in May 2016, FINRA found that Scullin placed a trade of over $5 million without informing the individuals with authority over the account. Further, when one of the individuals questioned the unauthorized trade, Scullin concealed the trade.

What is the Senior Safe Act?

May 24, 2017 | Silver Law Group

Find out how the proposed law would help protect the elderly

Elder financial fraud in the U.S. has now reached an epidemic level. According to an estimate from the Government Accountability Office (GAO), seniors are scammed out of almost $3 billion every year. Fortunately, plans are in the works to help stop this growing problem.

Earlier this year, Senators Susan Collins and Claire McCaskill introduced the Senior Safe Act. This bipartisan legislation aims to protect older people from financial exploitation and fraud. If passed, support would be given to regulators and financial institutions to educate employees about identifying and preventing abuse.