Securities Arbitration Lawyers Blog

FINRA Suspends Broker John Valliades After Allegations of Purchasing Investments Without Sufficient Authorization

May 2, 2017 | Silver Law Group

Valliades was also routinely accused of churning by former customers

According to the Financial Industry Regulatory Authority (FINRA), New York Broker John Valliades was involved in a regulatory dispute that occurred while he was employed with Petersen Investments, Inc., in New York, NY. FINRA also reports that Valliades “consented to sanctions and to the entry of findings that he exercised discretion in three customers” accounts without obtaining prior written authorization from customers.

The findings stated that while Valliades and his customers spoke and agreed upon investments for the customers’ accounts, he exercised time and price discretion in executing transactions on dates when he had not spoken with the clients. As a result, Valliades was suspended for 20 days from working in any capacity in the securities industry and fined $5,000.

Home Visits: We Can Come to You

May 1, 2017 | Silver Law Group

Unfortunately, some brokers and financial advisors devise ways to charge additional commissions, take unnecessary investment risks, or even defraud their clients. And one of the most egregious varieties of fraud or other improper financial activity involves taking advantage of older individuals, some of whom are not privy to information that is withheld by a financial adviser, and others who may have diminished mental capacity.

Although it’s common in the U.S., elder financial fraud frequently goes unreported. In many cases, this is because the person lacks information, is unaware of their rights, or does not know that there are mechanisms to potentially recover lost funds and hold brokers and financial advisers accountable. It’s also possible that an individual may be unable to travel, or he or she is simply uncomfortable giving too many details over the phone.

The Silver Law Group wants to help. If you have been the victim of elder financial fraud, we will gladly send an attorney to your home to discuss the situation. We’ll go over your options and discuss what steps to take next.

Texas-based Broker Patrick Perales Permanently Barred by FINRA

May 1, 2017 | Silver Law Group

Broker failed to respond to agency following discharge from Wells Fargo Advisors, LLC after allegations related to his status as Power of Attorney for a client

In August 2016, the Financial Regulatory Authority (FINRA) permanently barred former Wells Fargo Advisors, LLC broker Patrick Perales from participating as a broker or otherwise associating with firms that sell securities to the public. The regulatory action is a result of Perales’ failure to respond to FINRA’s requests for documents and information related to an investigation surrounding why his then employer, Wells Fargo Advisors, LLC discharged him earlier in 2016.

According to his FINRA BrokerCheck report, Wells Fargo Advisors terminated Perales’ employment in January 2016 “for reasons unrelated to the business of Wells Fargo Advisors, LLC. Banker acted as a paid POA (Power of Attorney) for a bank client without disclosing and obtaining approval to serve as POA for a client.” While the bank client admitted giving Perales Power of Attorney over his account and paying Perales to assist him with his business needs, the client also alleged that money was missing from his account. A violation of this trust could represent Power of Attorney fraud.

Are Brokers Allowed to Borrow from Customers?

April 30, 2017 | Silver Law Group

The answer, in most all cases, is “no”

In order to become licensed, one of the things a broker has to do is agree to adhere to the rules and regulations established by the Financial Industry Regulatory Authority (FINRA). One of these rules involves the borrowing of money from clients, and on this matter FINRA is very clear.

Among other stipulations, FINRA Rule 3240 says that unless the person is an immediate family member or a firm has specific written procedures about borrowing and lending, then it constitutes a violation.

Barry F. Connell, Formerly of Morgan Stanley, Under Investigation Over Allegations that he Stole From Clients

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former New Jersey-based Morgan Stanley (CRD# 149777) broker Barry F. Connell (CRD# 3070984) over SEC allegations that he stole money from his customers.

According to the SEC complaint, Connell misappropriated approximately $5 million from Morgan Stanley clients from December 2015 through November 2016. Allegedly, Connell carried out the scheme primarily by moving funds between certain client accounts and issuing wire transfers and checks from the accounts to third parties for his benefit. Over the course of approximately eleven (11) months, Connell made 100 unauthorized transactions, according to the SEC complaint.

According to Connell’s FINRA BrokerCheck report, Morgan Stanley discharged Connell in November 2016 after the allegations surfaced.

Former Morgan Stanley Broker Hilary J. Zimmerman Under Investigation Over Unauthorized Trading Allegations

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Mississippi-based Morgan Stanley (CRD# 149777) broker Hilary J. Zimmerman (CRD# 2191841) over unauthorized trading allegations.

According to Zimmerman’s FINRA BrokerCheck report, Zimmerman is the subject of seven (7) disclosures. Out of the seven disclosures, Zimmerman has had three (3) settled on his behalf and one (1) in which a FINRA arbitration panel found in favor of the claimants.

In 2010, multiple claimants alleged Zimmerman excessively traded their accounts in unsuitable transactions, and the FINRA arbitration panel awarded over $387,000 to the claimants.

Brett S. Murphy, Boca Raton, Florida-based Revere Securities Broker Under Investigation Over Allegations of Churning in Unit Investment Trusts

April 26, 2017 | Silver Law Group

Silver Law Group is investigating Boca Raton, Florida-based Revere Securities LLC (CRD# 14178) broker Brett S. Murphy (CRD# 2434384) over allegations that Murphy excessively traded unit investment trusts (“UITs”) in a customer’s account.

According to Scott’s FINRA BrokerCheck report, a customer filed a complaint against Scott alleging Scott churned the customer’s account in UITs and that the UITs were unsuitable. Further, the customer alleges that Scott’s employing firm, Oppenheimer & Co. Inc. (CRD# 249) as well as Revere Securities, failed to supervise Scott.

Oppenheimer employed Scott from July 2011 to March 2015 at its Palm Beach Gardens, Florida locations. Scott then moved further south to Revere Securities in Boca Raton, Florida where he is currently employed.

Jed E. Tinder, Former Montana-based Western International Securities Broker Under Investigation

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Montana-based Western International Securities, Inc. (CRD# 39262) broker Jed E. Tinder (CRD# 1013144) over allegations of unsuitability, recklessness and negligence.

According to Tinder’s FINRA BrokerCheck report, Tinder currently has three (3) pending FINRA arbitration complaints. The first, filed in September 2015, alleges unsuitable recommendations and damages in the amount of $1.2 million. The second, filed in July 2016, alleges unsuitability and damages in the amount of $187,000. The third, filed in August 2016, alleges recklessness, negligence and damages in the amount of over $181,000.

In 2006, though denied, a customer filed a complaint involving variable annuities and equity-indexed annuities.

Marcos Yanez, former LPL Financial Broker Under Investigation Over Variable Annuities Misrepresentation Allegations

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Dallas, Texas-based LPL Financial LLC (CRD# 6413) broker Marcos Yanez (CRD# 5353857) over allegations that Yanez misrepresented certain aspects in the sale of a variable life insurance policy amidst other allegations.

According to Yanez’s FINRA BrokerCheck report, a customer filed a complaint against Yanez in March 2017. The FINRA arbitration complaint alleges misrepresentations in the sale of a variable life insurance policy, and that Yanez advised the customer to take out a margin loan in order to loan money to the advisor.

LPL Financial employed Yanez from December 2011 to March 2016 at its Dallas, Texas branch. According to Yanez’s detailed CRD report, Yanez operated under the moniker Staib Wealth Management from February 2014 until the name changed to Silver Sail Wealth Advisors in February 2015. Yanez is no longer registered with FINRA.

California Broker Kelly Althar Receives Permanent Ban from FINRA after Elder Fraud Case

April 20, 2017 | Silver Law Group

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The broker is reported to have made risky investments that lost a client most of her retirement savings

Early in 2017, the Financial Industry Regulatory Authority (FINRA) permanently banned Kelly Althar from acting as a broker. This action was the result of several allegations, including excessive trading, unsuitable recommendations, and possible elder financial fraud.

A 10-year veteran of the securities industry, Althar worked for these six firms, starting in 1995: