Securities Arbitration Lawyers Blog

FINRA Sanctions Oppenheimer & Co. $3.4 Million for Reporting Violations and More

March 6, 2017 | Silver Law Group

FINRA Sanctions Oppenheimer & Co. $3.4 Million for Reporting Violations and More on silverlaw.com

FINRA says that the investment firm often reported essential data more than 4 years late

This January, the Financial Industry Regulatory Authority (FINRA) fined investment bank and wealth management firm Oppenheimer & Co. $1.575 million for allegedly failing to report mandatory data, withholding documents in discovery for clients in arbitration, and for failing to apply sales charge waivers to clients. As a part of the settlement agreement, FINRA also ordered the company to pay $1.85 million in restitution to clients.

According to FINRA, lack of reporting was pervasive throughout the firm

Oppenheimer & Co. and Other Firms Cited for Discovery Violations in FINRA Arbitration

March 6, 2017 | Silver Law Group

Oppenheimer & Co. and Other Firms Cited for Discovery Violations in FINRA Arbitration on silverlaw.com

Discovery violations can severely impede the chance of a fair arbitration proceeding

Between 2010 and 2013, investment management firm Oppenheimer & Co. is reported to have repeatedly failed to produce documents during the discovery process for a group of claimants who alleged that the firm had not properly supervised a broker who managed their investments.

Why the discovery process is so important in securities arbitration

Former Broker Winston Turner’s Career is Over Barely after it Begun

March 1, 2017 | Silver Law Group

Former Broker Winston Turner’s Career is Over Barely after it Begun on silverlaw.com

The former Sarasota, FL broker has been permanently barred by FINRA for falsifying information, among other charges

After only about four years in the securities industry, Winston Turner has been barred permanently by the Financial Industry Regulatory Authority (FINRA). In February of 2016, FINRA made the decision based on evidence showing Turner falsified information in regard to variable annuity transactions.

FINRA found that, in addition to circumventing his firm’s supervisory review process to misrepresent the sources of funds, Turner submitted documents with forged customer signatures. He is also reported to have failed to disclose outside business activity. The final nail in the coffin came when Turner reportedly refused to offer information to FINRA and didn’t appear for scheduled testimony.

FINRA Hands Down Fines and a Suspension to Broker Ciro Cavazos

February 28, 2017 | Silver Law Group

It’s reported that the California broker didn’t disclose that he borrowed money from a client, among previous accusations of elder financial exploitation

Ciro Cavazos learned in August of 2016 that he was being fined and suspended by the Financial Industry Regulatory Authority (FINRA). The agency discovered that Cavazos borrowed money from a client and that the action was undocumented. In addition, he only agreed to pay back the loan verbally when he could, and that there were no repayment terms or a fixed maturity date. When Cavazos’ registration was transferred to another firm – along with the client’s account – he had only partially paid back the client.

Although he wouldn’t admit or deny the findings, Cavazos agreed to the suspension and the fines.

34-Year Career of Wisconsin-based Broker James Paul Kolf Comes to an Abrupt End

February 28, 2017 | Silver Law Group

34-Year Career of Wisconsin-based Broker James Paul Kolf Comes to an Abrupt End on silverlaw.com

Allegations of securities fraud and violation of the Securities Exchange Act of 1934 drive FINRA action to permanently bar Kolf

According to the Financial Industry Regulatory Authority (FINRA), broker James Kolf allegedly recommended and sold at least $588,000 in securities to twelve firm customers between October 2013 and July 2014. These customers believed they were investing in securities of “SFN Financial Network,” however, such securities did not actually exist. Instead, Kolf is reported to have used his customer’s funds to pay for his own business and personal expenses. Taking it a step further, Kolf allegedly then created and distributed falsified account statements to his customers reflecting their interests in the fake investments.

Such allegations of fraud and material misrepresentation ended what to date had been a spotless career in the securities industry.

Did You or Your Loved One Let NYLIFE Broker Cynthia Bolker Borrow Money or Manage Investments?

February 27, 2017 | Silver Law Group

California-based broker is now permanently barred from securities industry by FINRA; allegations raise possibility of elder financial fraud

As a broker, it is typically against brokerage firm policy for financial advisors to borrow money from customers. This allegedly did not stop NYLIFE Securities, LLC broker Cynthia Bolker in San Diego, CA from borrowing at least $745,800 from individuals, two of whom were customers at her member firm, to pay for her personal expenses.

According to the Financial Industry Regulatory Authority (FINRA) disciplinary action document, on at least 37 occasions between approximately June 2010 and July 2015, Bolker borrowed at least $745,800 from ten individuals to pay for her personal expenses.

Permanently Barred Nebraska Broker Matthew L. Geiser Under Investigation

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Nebraska-based Independent Financial Group, LLC (CRD# 7717) broker Matthew L. Geiser after FINRA permanently barred him.

According to Geiser’s FINRA BrokerCheck report, FINRA permanently barred Geiser from acting as a broker or otherwise associating with firms that sell securities to the public in November 2016. FINRA and Geiser entered in an Acceptance, Waiver & Consent (“AWC”) in which Geiser consented to the bar and findings that he refused to appear for FINRA on-the-record testimony in connection with an investigation into allegations of misconduct against Geiser, including allegations of unsuitable recommendations and misleading statements about variable annuities.

Geiser, who initially was employed by Princor Financial Services Corporation (CRD# 7717), was discharged by Princor in September 2015 for issues involving suitability recommendations. Princor is also known as Principle Securities, Inc. Since Princor’s discharge of Geiser, 11 FINRA arbitration complaints against Geiser have settled.

Missouri Files Complaint Alleging Theft from Elderly Customer by U.S. Bancorp Broker Broker Shannon K. Daniels

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Missouri-based U.S. Bancorp Investments, Inc. (CRD# 17868) broker Shannon K. Daniels (CRD# 4606771) after FINRA permanently barred the broker.

According to Daniel’s FINRA BrokerCheck report, FINRA permanently barred Daniels from acting as a broker or otherwise associating with firms that sell securities to the public in August 2016. According to the BrokerCheck report, Daniels failed to respond to a FINRA request for information.

U.S. Bancorp Investments discharged Daniels in June 2016 alleging the firm did so due to Daniels’ misappropriation of customer funds. Subsequently, in December 2016, the state of Missouri brought an action against Daniels.

SEC Charges Windsor Street Capital/Meyers Associates for Alleged Conduct in Pump-and-Dump Scheme

February 27, 2017 | Silver Law Group

The SEC announced charges against New York-based brokerage firm Windsor Street Capital (CRD# 34171), formerly Meyers Associates, L.P., for gatekeeper failures related to a pump-and-dump scheme. John D. Telfer (CRD# 1099745) was also charged as chief compliance officer and anti-money laundering officer of Windsor Street Capital from November 2013 to his separation from the firm in September 2016.

According to the SEC complaint, Windsor Street Capital (“Windsor Street”) violated Section 5 of the Securities Act after it facilitated the unregistered sale of hundreds of millions of penny stock shares without performing adequate due diligence regarding the Section 5 compliance of the shares.

The penny stock companies were MedGen, Inc.; Alternaturals, Inc.; Manzo Pharmaceuticals, Inc.; and Solpower, Inc. According to the complaint, Windsor Street Capital failed to file suspicious activity reports for $24.8 million in suspicious transactions, including those occurring in accounts controlled by microcap stock financiers Raymond H. Barton and William G. Goode, who were separately charged.

Former Cetera-related Broker Clay E. Hoffman Has 19 BrokerCheck Disclosures; FINRA Actions

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Georgia-based Summit Brokerage Services, Inc. (CRD# 34643) broker Clay E. Hoffman (CRD# 4371162) due to multiple FINRA actions pending against him and his racking up of 16 BrokerCheck disclosures in the past five years.

FINRA has initiated four regulatory actions against Hoffman in 2016, according to Hoffman’s FINRA BrokerCheck report. Our attorneys have been monitoring FINRA’s actions against Hoffman.

The first, initiated in February, alleged Hoffman exercised discretion in a customer’s account and made unauthorized transactions without written authorization from the customer or the approval of Hoffman’s firm. Hoffman was fined $5,000 and suspended for 15 days.