Securities Arbitration Lawyers Blog

Former Las Vegas Wells Fargo Broker Donald S. Toomer Allegedly Received Kickbacks for Selling Microcap Stocks

March 14, 2017 | Silver Law Group

Silver Law Group is investigating former Las Vegas, Nevada-based Wells Fargo Advisors Financial Network, LLC (CRD# 11025) broker Donald S. Toomer (CRD# 2842723) after he was discharged by Wells Fargo and named in an SEC and criminal complaint over allegations that he sold microcap stocks to his customers in exchange for cash kickbacks.

On December 21, 2015, a criminal charge was filed against Toomer charging him with conspiracy to commit securities fraud and investment adviser fraud, investment adviser fraud, and securities fraud. The same day, the SEC announced civil charges against Toomer when it amended its initial complaint. Wells Fargo subsequently allowed Toomer to resign following the allegations, according to Toomer’s FINRA BrokerCheck report.

According to the SEC amended complaint (the “Complaint”), the SEC alleges Toomer abused his role as financial advisor to help create the false appearance of market demand in four microcap stocks: BioNeutral Group, Inc. (“BONU”); NXT Nutritionals Holdings, Inc. (“NXTH”); Mesa Energy Holdigns, Inc. (“MSEH”); and Clear-Lite Holdings, Inc. (“CLRH”) (collectively, the “Issuers”).

Former Broker Christopher Paul is Banned from Selling Securities

March 13, 2017 | Silver Law Group

Former Broker Christopher Paul is Banned from Selling Securities on silverlaw.com

The broker had been involved in several customer disputes

Christopher Paul’s 14-year career as a broker is over. In November of 2016, the Financial Industry Regulatory Authority (FINRA) permanently banned him because he did not respond when the agency contacted him for information. Paul has had many customer complaints against him dating back to 2008.

Paul began his career at S.W. Bach & Company out of Port Washington, NY, in 2001. In 2005, he moved on to Granite Associates, Inc. in Melville, NY, followed by Whitaker Securities LLC, also in Melville.

Matthew Christopher Maczko Permanently Barred from Practicing as a Broker

March 10, 2017 | Silver Law Group

Matthew Christopher Maczko Permanently Barred from Practicing as a Broker on silverlaw.com

The former Wells Fargo broker was banned after allegations of unsuitable trading for elderly client

On February 9, 2017, Matthew Christopher Maczko was permanently barred by the Financial Industry Regulatory Authority (FINRA) after Maczko consented to the sanction and FINRA’s findings.

FINRA found that between January 2009 and April 2016, Maczko made excessive and unsuitable trades on behalf of his elderly client, now 93 years old. FINRA also reported that Maczko inaccurately testified before FINRA that he had not spoken with other clients, also senior citizens, since his termination. However, telephone records revealed that he had in fact spoken with these clients several times in that period.

New York Broker Christopher Vincent Paul Permanently Barred by FINRA

March 7, 2017 | Silver Law Group

New York Broker Christopher Vincent Paul Permanently Barred by FINRA on silverlaw.com

An assortment of charges, firings, and settlements have followed the broker for the last decade

Christopher Vincent Paul’s 14-year career has come to an end. After failing to give the Financial Industry Regulatory Authority (FINRA) information it was looking for, the agency permanently barred him from acting as a broker.

From May of 2001 to August of 2015, these are the firms with which Paul was associated, all of them in New York:

New York Broker Stanley Niekras Under Investigation for Elder Fraud

March 6, 2017 | Silver Law Group

FINRA allegations include billing elderly clients $70,000 in false fees to make up lost commissions

Former Purshe Kaplan Sterling Investments and MML Investors Services, LLC adviser Stanley Clayton Niekras is under investigation by the Financial Industry Regulatory Authority (FINRA) for allegedly taking advantage of elderly clients.

In its complaint, FINRA alleges that Niekras billed two elderly customers more than $70,000 for both estate and financial planning services that he was not entitled to, in addition to the fact that Niekras did not receive his firm’s approval for such billing.

Broker Jeffrey Alan Hill Gets 15-Month Suspension for Allegedly Bilking Elderly Customers

March 6, 2017 | Silver Law Group

The broker was also fined and fired from Wells Fargo

Broker Jeffrey Alan Hill has been suspended by the Financial Industry Regulatory Authority (FINRA) for all of 2017 and will not be allowed to sell securities again until March of 2018. He was also fined $50,000.

FINRA’s investigation reported that Hill made hundreds of trades for two elderly clients, only contacting them about half of the time. In addition, he recommended many investments that were “qualitatively or quantitatively unsuitable or lacked a reasonable basis.”

Former Broker Matthew Maczko has been Barred Permanently by FINRA

March 6, 2017 | Silver Law Group

Former Broker Matthew Maczko has been Barred Permanently by FINRA on silverlaw.com

Maczko is reported to have earned nearly $600K in commissions by excessively trading an elderly client’s account

After almost 30 years in the securities industry, Matthew Maczko’s career is over. Earlier this month, the Financial Industry Regulatory Authority (FINRA) permanently barred him from acting as a broker due to allegations of churning.

FINRA found that between January of 2009 and April of 2016, Maczko made excessive trades in four accounts of a customer, who was in her late 80s when he began. These accounts – which had a value of about $3 million – were controlled by Maczko, and during that time span earned him almost $600K in commissions. The client ended up paying another $84K in fees, and lost nearly $400K through Maczko’s investments.It was also discovered that given his client’s age, income needs, and risk tolerance, Maczko’s level of trading was unsuitable, which would mean he acted contrary to the client’s goals or financial situation, and thus primarily to enrich himself. Excessive trading – also known as churning – is just that: a way for a broker or firm to benefit while an investor potentially loses a lot of money in commissions and fees.

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.